Why Hosted MPM Solutions Are Better (a reason you might not have considered).
Ok, obviously we offer a hosted marketing project management tool so I'm biased when it comes to the Software-as-a-Service (SaaS) model. The benefits for considering a hosted solution over buying software are well documented. However, as a buyer, there is something a hosted vendor can often offer that traditional software vendors sometimes struggle to provide. What is this elusive benefit? With a hosted solution, existing clients get more attention and better service from a vendor than prospective clients! The reason this happens is actually very logical...
For a traditional software company, most revenue comes from new clients (or existing clients who are buying upgrades). However, because hosted solutions are typically offered as an ongoing service (with upgrades included in the monthly fee) the vast majority of revenue each month comes from existing clients. So it is only natural that companies offering hosted solutions spend more time thinking about how to keep their existing customers happy than they spend time thinking about how to get new clients. As a hosted provider, the biggest way you can impact your revenue is to take your eye off your existing customers (and believe me when I tell you that this type of impact will not be positive).
At Aquent we naturally find ourselves talking about things like "how can we get existing clients to use our tools more?". Why? The more companies use tools like RoboHead and MajorTom, the more likely they are to keep using them.
The last 20 years have seen millions of dollars wasted on shelfware (software that gets purchased but never used). For a traditional software company, shelfware is not good, but it doesn't immediately impact the top line. For a hosted vendor, shelfware has an immediate negative impact. So, if you want to get the same level of attention from your vendor after you have made your buying decision as the attention that you got when you were considering a solution, seriously consider a hosted MPM tool.
