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by webmobdev 1427 days ago
Let me add some more fuel to the debate - How can software-as-a-service be regulated in a way that it balances consumer rights and the rights of a business? Perhaps:

1. Every SaaS business should be compelled to offer both a subscription price and perpetual license at a fixed price.

2. The fixed price of a perpetual license should not be more than 10x or 20x (?) of the monthly subscription price.

3. If a user has opted for subscription payment, they should get a perpetual licence after they have paid a certain subscription amount over a period that is not more than 2x or 3x of the fixed price of the perpetual license.

4. SaaS businesses should not be allowed to hold users data hostage if the user decides to end the subscription. (This can be tricky if the data is in some proprietary format).

5. As much as possible, the SaaS should be able to run offline on a user's computer without needing to offload computing to servers.

Ofcourse, most of the above are practical only for software that you can actually run on your computer and don't require massive computing powers from data centers that some services may need. But then again, that's exactly the kind of software that don't need to be SaaS at all in the first place, as the article too points out.

1 comments

Regulation is the worst solution to any of this. Let the free market figure it out and you'll find enough competition if there really is enough demand.
The "free market" will always, always end up with large fish eating up the small fish and extracting rents once the competition is eliminated and the startup costs too high for startups to enter the market.
> The "free market" will always, always end up with large fish eating up the small fish

I still think this has much more to do with market interventions enabling 'artificially' large economies of scale. Infrastructure, police, subsidies/grants, IP protections--all played and continue to play a massive role in shaping markets today.

The number of successful new companies contradicts that statement.

Regulation, on the other hand, does tend to lead to rent seeking behavior as incumbents use those laws to their advantage and forcibly block new companies.

It’s much easier to overcome high costs than bad laws.

> The number of successful new companies contradicts that statement.

And that's only because of current regulations and anti-competition laws. Turns out "free market" is only "free" when the giants are asked to behave and punished for bad behaviours.

The so-called "free" market doesn't care about consumer rights, though.
What part of this is about consumer rights?
With web applications, the right to privacy, not to deal with unwanted and / or forced updates or ToS changes, to retain the rights on our data and access it etc.