SaaS turbo-charged software spending tough for CIOs to control, says research Boston Consulting Group (BCG) is warning that organizations need to rethink their approach to buying software as the ongoing push of SaaS into the market gathers pace. Its analysis of Gartner's figures shows IT spending has grown 6 percent between 2019 and 2025 to reach about $5 trillion. However, the proportion of the total …
Yes, but the customer sees it as operating expenses, so not as big, and in theory you can get out of it quicker and go back to the market for a better solution... maybe that's why Brumm Council did so well out of it.
Perhaps it helps to see it a bit like the housing market. It doesn't cost anything like as much to rent your house for a year as it does to buy one. That's why tenants are in such a good place compared to owner-occupiers... oh.
It's modern economics. Product and owning are so old fashioned, now you rent ( or XaaS) and pay for access per time or use. They tell you it will save you having to use your capital for things you don't want for ever. They forget to tell you that they have been over it all with value economists so unless you're very savvy, you'll end up paying just as much or even more. Doubtless there's some economics theorem a bit like surface energy, to explain why everything ends up in the hands of large corporations. (The so-called regulators certainly don't do that job in any market I can see.)
