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TCO Analysis: Software as a Service

 
 

Software as a service costs up to $135,000 less than a comparable licensed application over three years. That's the finding of Network Computing'S TCO analysis contrasting a CRM service and a licensed software package. Of course, the bottom line doesn't tell the whole story: Readers cite concerns over security, performance, uptime and physical possession of critical business data. By jumping into SaaS, is IT just trading one set of problems for another?

Maybe, but the savings might be well worth the extra due diligence. Our detailed breakdown compares the costs to acquire and deploy three CRM applications. On the SaaS side, we looked at Salesforce.com Professional. For licensed premises software, we examined Microsoft Dynamics CRM 3.0 Professional and Oracle Siebel CRM Pro. In our evaluation, for 105 users over the long term, when it comes to price, SaaS offers a significant advantage over the premises products.

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