SaaS, cloud computing lead to cuts in application hosting pricing

from TechTarget:

>>Application hosting pricing is expected to decrease by up to 20% over the next two years thanks to increased competition on a number of fronts, including the advent of cloud computing, as well as reduced provider expenses, according to Gartner Inc. But not everyone will be in a position to renegotiate their contracts and take advantage of the cuts.

But Chamberlin cautioned that not all companies will be able to renegotiate with their application hosting providers, which range from traditional providers such as IBM, Computer Sciences Corp., NaviSite Inc. and Electronic Data Systems to telcos such as AT&T, which bought ASP USinternetworking, and niche providers such as SunGard and Secure-24 Inc., which specialize in SAP.