For Business Process & Applications Professionals (Length: 10 pages)

September 20, 2006

Comparing The ROI Of SaaS Versus On-Premise Using Forrester's TEI™ Approach

This is the third document in the "Measuring The TEI For Enterprise Applications" series.

by R "Ray" Wang

with Eric G. Brown, Jon Erickson, Will McEnroe, Emily Van Metre

Executive Summary (This is a document excerpt)

While adoption of software-as-a-service (SaaS) has become widely accepted in CRM, usage in ERP continues to play catch-up. Consequently, firms evaluating various deployment options should consider evaluating both SaaS as well as traditional on-premise options beyond the pure cost tradeoffs. Depending on the business models and economic drivers, differences in business benefits, flexibility, and risk are important when comparing these deployment options. This document, the third in a series, builds upon the on-premise and SaaS models of the first two reports and evaluates four scenarios using Forrester's Total Economic Impact™ (TEI) methodology for 50, 100, 250, and 500 users.

TABLE OF CONTENTS

NOTES & RESOURCES

itemApplying The TEI Model To SaaS Versus On-Premise Evaluations

itemComparing SaaS With On-Premise Using TEI

itemLearn From Scenarios For 50, 100, 250, And 500 Users

recommendations

itemEvaluate SaaS Versus On-Premise Using An ROI Approach

WHAT IT MEANS

itemTEI Depends Not Only On Number Of Users But Also On Number Of Sites

Forrester received briefings and conducted interviews with nine SaaS and managed application service vendors: Everest Software, Intacct, Microsoft Business Solutions, netASPx, NetSuite, Oracle, salesforce.com, SAP, and Workday. The forecast in Figures 2, 3, 4, and 5, including the TEI methodology and assumptions of the model, is available online.

Related Research Documents

itemThe Financial Economic Impact Of Software-As-A-Service

September 1, 2006, Best Practices

itemAssessing New Software Vendor Financing Options

August 29, 2006, Best Practices

itemTopic Overview: Enterprise Resource Planning

August 8, 2006, Topic Overview

itemThe Financial Impact Of Packaged Applications

July 11, 2006, Best Practices

Find Documents In Related Categories

This document falls under the following categories. Click on a link below to find similar documents.
Analyst: R "Ray" Wang
Technology: Enterprise Resource Planning Applications, IT Services, IT Spending & Budgeting, Outsourcing, Packaged Applications, Sourcing & Procurement, Sourcing Strategy & Execution, Total Economic Impact™
Industry: High-Tech, Strategy Execution & Measurement
Special Feature: Models
Geography: Asia Pacific, Europe, North America

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Special Features

4 Models

Manipulable market sizing or cost spreadsheets

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Ratings and Comments
Rating: 7 out of 10
based on 2 ratings across all roles.
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