RightNow, a CRM provider that has been shifting to a software as a service (SaaS) business model, is scheduled to release financial results after US markets close today.
RightNow’s results could give managed service providers and SaaS enthusiasts a few hints about the overall health of the on-demand software industry. Also, RightNow may help other companies to better plan their own shifts to SaaS.
So far, the move to SaaS hasn’t gone very smoothly for RightNow. The company hit a few financial bumps in recent quarters, but received an upgrade from one investment firm on March 31. We’ll be back with some analysis of RightNow’s results once they’re announced.
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You are correct to point out that the transition from traditional software to saas licensing involves real challenges. Pure saas companies like Salesforce.com and Netsuite have a real advantage in this market because they aren’t held back by old customer expectations and old licensing models.
Rightnow is caught in a difficult transition. But i think we can all learn from their successes (and mistakes). I’d imagine that most businesses will prefer steady saas-based pricing models within two to four years. The old way is just too painful.
Derrick: Looks like RightNow is beginning to find its stride. Take a look at MSPmentor’s updated coverage.