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July 30, 2008

Subscriptions. It's Not Only for Hosted Applications

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We know that one of the big draws for software as a services, is that you don't have to pay for the software up front. You pay a monthly fee, per user, and in most cases use as much of the software you want. Every time the software is updated - your version is automatically updated. When there's a new feature - you get that new feature. Traditional software has not normally followed.

Sure you get upgraded discounts, but that's about it. Of course Microsoft has had a subscription license program for years it's been one of the few vendors to do so.

Earlier this month, Sage launched a $49 per year subscription model for ACT!. This subscription includes ACT! upgrades and relevant resources including $1,500 worth of Sandler sales training content, and access to a new online business development portal with moderated discussion forums. Additional benefits include exclusive offers for email marketing and Voice-over-IP telephony ACT! add-on services. Add-on offers will vary during subscription periods. ACT! Platinum Care is available now for the introductory price of $49 per year per ACT! user, and $69 per year per ACT! Premium user. Introductory pricing is available until September 30, 2008.

At face value, if you buy the services offered in this plan "off the shelf" you are definitely saving money with the subscription model.

Software vendors want to ensure a steady stream of revenue and one way to do it is with subscriptions. Let's look at the Microsoft Office example. Many people are still using version 2003 or older version of Microsoft Office. Why? People, like me, buy it and can keep using it forever no need to upgrade. However, with subscriptions, users have the latest versions and pay an annual fee for it.

If your business lives on ACT! it makes sense to seriously consider subscribing to ACT!

You can read the full press release here.

tags: act , crm , hosted applications , saas , sage , subscriptions | 0 comments