Software-as-a-Service (SaaS) continues to gain traction over traditional on-premise software licensing models as organizations aggressively seek more cost-effective, flexible and robust computing solutions.
The number of organizations adopting SaaS is growing at a healthy rate. Gartner Research estimates worldwide SaaS revenue within the enterprise application software market will surpass $8.5 billion in 2010; up 14.1 percent from 2009 revenue of $7.5 billion.
Few would argue that SaaS holds a lot of promise as a cost-effective and robust model for applications. However, organizations still need to map the total cost of ownership (TCO) and return on investment (ROI) for each and every application that is moved to a SaaS model. SaaS pricing models are different than traditional on-premise computing and ASP models. In addition, soft costs and returns, such as people, productivity and time-to-market, are difficult to nail down. Such disparities make apples-to-apples comparisons difficult to construct.
This paper will help you understand and calculate the true costs of SaaS to determine what benefits this important resource-maximizing approach can offer your company now and in the future.
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