The value of 'Software as a Service'

Software as a Service, or SaaS, where vendors operate, maintain and support software for their customers, can provide real value to a company. But to make sure your company is a good candidate and will reap real value, evaluate the cost and productivity savings carefully. Calculating its benefits requires a different approach from evaluating the ROI of traditional software. Without the right measures, the SaaS model might seem more expensive than licensed software, since IT budgets often don't take the operating expense implications of subscription pricing into account. Instead, CIOs should develop TCO models that accurately assess the business case for an SaaS approach. Clearly understanding the business plan is key; without understanding whether SaaS is a capital investment or an operating expense, it's impossible to determine whether it makes sense for the company.

Learn more about evaluating whether SaaS is a good bet for your company:
- read the article at Optimize

ALSO:
- read this on the pros and cons of SaaS
- and this on SaaS: a view from the trenches