SaaS Saves Money & Improves Operations: TCO and ROI Calculations Help Make the Case

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Executive Summary

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. 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. 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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