Will Recession Boost SaaS?

Medford, Cassimir
January 2009
Red Herring;1/26/2009, p4
Trade Publication
The article focuses on an IDC report which indicates that Software-as-a-Service (SaaS) companies are likely to benefit from the economic downturn as cash-strapped customers look to rent rather than purchase company software. Most SaaS providers are small companies without the ability to demand upfront payment or multiyear commitments. They are likely to end up with liquidity challenges stemming from slow-paying customers, according to Robert Mahowald of IDC.


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