The latest tactic SaaS sales reps are using to justify contract renewal increases is blaming the Security and Exchange Commission (SEC). SaaS vendors are dependent on growing contract value to show revenue growth. Vendors can grow contract value by raising prices or adding users. The problem is what if a customer needs to downsize their contract when it is up for renewal. The response by SaaS sales reps is increasingly, “we can’t do that because SEC?”. Huh? So the client should take the hit so the vendor can continue to show revenue growth? What happened to the nice sales rep who sold a partnership along with the theory that cloud computing would eliminate the wrong doings of on premise deployments. I am not against vendors trying to grow their business but there has to be a better reason than the SEC made me do it.
by Robert Desisto | February 8, 2011 | 1 Comment