IT Services News

The recent worldwide economic downturn may be taking its toll on many software merchants, but it also paved the way for a buyer’s market.

Ray Wang, a Forrester Research analyst, stated in a blog, "Now’s the time to buy more licenses should you need them and if you have the cash to spare. Vendors remain anxious for new deals and new deals are far and few between."

Some businesses take the recession on a positive note, making IT deals that would bolster their financial status. Frank Scavo, of the Irvine, California, consulting firm Strativa, said, "Economic conditions are causing organizations to delay buying decisions, so the major vendors are aggressively discounting to prospects that are willing to make a decision quickly. [But] the business model of the major vendors is increasingly focused on maintenance fees, which are a recurring revenue source year after year. Software licenses are just a door opener to the maintenance revenue, where vendors really make their money."

Several organizations are taking advantage of the fact that weaker businesses have the inclination to sell out, thus creating a market designed to stand the test of tougher economic times.