Quest CEO Blog | SaaS Can Reduce Costs

 

Quest CEO Blog

Thoughts on Technology, Business and the Management of Both.

 

SaaS Can Reduce Costs

by Tim Burke
Sunday, April 26, 2009

While Software-as-a-Service (SaaS) offerings like Cisco’s WebEx are being readily embraced by businesses and IT shops, SaaS offerings for other applications, such as ERP and compliance, face stiffer opposition.

No matter the company size, the reasons for rejecting SaaS can range from loss of control to concerns about security. But most often, especially in these times of tight budgets, it’s apprehension about costs that stall adoption — folks get hung up on the monthly charge.

True, there’s a new line item in the budget. But there’s also a whole lot of cost associated with doing it the old way that can be eliminated, including the cost of the software, support, on-going maintenance, and the constant need to refresh your infrastructure to support new capabilities and enhancements.

The SaaS model, when properly priced, can be 30-to-50% less expensive than a traditional approach. But caveat emptor (buyer beware): not all SaaS offerings have sensible price points. A trusted technology partner can help you wade through the SaaS hype and decide what’s right for your business.

Bottom line: SaaS offers all businesses, regardless of size, a way to reduce overall costs — and a less expensive way to bring new capabilities, and new ways of doing business, to the operation.

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Categories: Business Continuity | Managed Services | Security


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