Hi HewjetWe may not like the SaS model but the industry is...

Hi Hewjet

We may not like the SaS model but the industry is moving that way. You can't fight the tide. Just like in the telecommunications industry a while back you had to lock in 12-24 months for a mobile phone contract, but now month to month contracts are the norm, SaS contracts have become the norm. Software companies that hold organisations to ransom now with required updates and increased maintenance costs, and therefore limiting a customers ability to negotiate, are phasing to Sas as the customer expects this option. It may just be CAPEX related decision making as well.

SAP for example is a backbone system which organisations generally like to own and pay the 20% maintenance year on year. It is sticky software where the cost of change is huge. I get this. For some companies, Nuix may be that type of system due to its stickiness, but perhaps like most organisation looking for value and ability to negotiate with software companies - SaS is preferred.

At the end of the day, this could also benefit them by providing them additional market share without the three-five year wait for a rolling contract from a competitor to expire. They have a great product.

Swings and roundabouts.