February 18, 2005

Why packaged software prices will decrease

Author: Ian Palmer

A report projecting decreases over the next three to
five years in packaged software prices presents some
key issues about which IT leaders should be mindful, experts
say.

Factors such as competition from new application
providers on top of infrastructure services from firms
like IBM, Microsoft, and SAP; the increasing
availability of open source solutions; the growth of
third-party application services providers; and the
increased use on offshore labor will combine, said
META Group, to reduce costs for packaged software for
the first time in over a decade.

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