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Gartner estimates that the annual cost to own and manage traditional "on-premise" software applications can be up to four times the initial purchase price. This is due to a company's need to acquire and maintain the resources needed to support a large scale in-house software deployment; including: hardware, software upgrades and maintenance, user education, and technical support.
Software-as-a-Service (SaaS) eliminates many of these costs, by taking responsibility for the day-to-day operations, upgrades, and infrastructure rather than placing it on the end user. The result is a much more economic solution that allows a company to devote precious resources to its core activities that impact their top and bottom line.
Download this Zip file, with a 34-page Software & Information Industry Association (SIIA) white paper (in PDF format) that explores this concept of Total Cost of Ownership (TCO) for on-premise software versus Software-as-a-Service, and discover your own cost savings with the included SaaS ROI calculator (in Excel format), too!
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