Is the Cost of Enterprise Software on the way down?
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Many tech industry analysts feel that the cost of enterprise software solutions is going to decline steadily in the years to come. The reason they believe this is quite simple. Over the past few years, IT departments have had the ability to save money on hardware such as computers and printers, as well as computer related services. With that being said, they are going to wonder why the software industry is not following suit. This will more than likely put enterprise software vendors in a precarious situation as they will have to attempt to lower their price without negatively effecting profits.
There are several other reasons why it only makes sense for the cost of enterprise software to decrease in the near future.
1. More and more companies are becoming interested in open source software which does not cost them a dime for the most part. When compared to purchasing enterprise software, this is obviously the more cost efficient option.
2. It is easier than ever before to obtain low cost, custom solutions by outsourcing to countries with low labor costs such as India. This has been seen across many industries already.
3. Chinese enterprise software companies are beginning to make major noise within the industry. In turn, if the performance of their products gets on par with higher priced options, industry leaders will have to lower prices in order to stay competitive.
These are all trends that industry analysts are watching carefully.
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