Does SaaS save money?
Traditional vendors of IT products and services argue that systems deployed on-premises are more cost-effective over the long run than their cloud-based counterparts. They claim that while licensed software may have higher acquisition costs, they are amortized over a fixed time period in contrast to Software-as-a-Service or SaaS, subscription fees, which continue for the life of the offering in the form of recurring per-user fees.
Cloud providers argue that that the upfront savings are significant and that,the real benefits of SaaS are not in direct cost savings but in the
strategic advantages that the cloud brings to the organization.
Which side is correct?
This report from Computer Economics uncovers the truth about the strategic benefits of cloud computing.