Benioff Spells The Truth Behind The High Cost Of Enterprise Software: Maintenance

Listening today at Salesforce.com CEO Marc Benioff at GigaOM’s Infrastructure 09 conference, one would think that the enterprise software business is a real racket… or cash-cow, depending on where you stand!

“The way enterprise software has worked for a lot of the large scale CIOs… You buy these enterprise software products maybe 10 years ago… and let’s say you paid a million dollars for that product.

Well Oracle and SAP charges you 22% a year on what you paid 10 years ago, even if they haven’t given you any updates or upgrades or anything. Just to have it on your servers,” explains Benioff.

That’s a lot of money considering that you are running on old infrastructures, architectures, etc… But as Benioff pointed out, it will take a while for CIOs to get out of the grip of traditional software companies like Oracle or SAP and move their infrastructure to the cloud; simply because it’s complex and requires to be highly integrated.

And, if ain’t broken… don’t fix it!

Here’s a short video clip of Benioff’s remarks on why the enterprise software business is a real racket for companies:

One Response to Benioff Spells The Truth Behind The High Cost Of Enterprise Software: Maintenance

  1. Thank you for your article. There are a lot of sites out there that don’t make as much sense. I’ve got a similar website myself, so will keep popping back to see what else you’ve posted.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 32 other followers