Gartner: SaaS Will Achieve 95% Renewal Rates

by: Jeffrey M. Kaplan

Once again Gartner is late to the party with its ‘bold’ predictions and customer surveys.

Gartner’s latest findings show that 95% of customers currently using Software-as-a-Service (SaaS) solutions are likely to renew these services. THINKstrategies and Cutter Consortium surveys found this out three years ago.

In fact, anyone who really understands the SaaS market, knows that SaaS companies cannot survive unless they keep customer churn to a minimum which means achieving 90%+ renewal rates.

But, Gartner’s survey research still helps to validate the viability of today’s SaaS alternatives in the eyes of the old-guard IT decision-makers who tend to take Gartner’s word as gospel. It clearly shows that the SaaS market isn’t the latest overhyped idea, but a user-driven movement which is fundamentally reshaping the software industry.

This research will open the door wider for greater customer adoption of SaaS solutions and put even more pressure on legacy software vendors to add SaaS solutions to their corporate portfolios.

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