Executive Summary (This is a document excerpt)

As firms look to focus on core business processes and turn the development and management of non-key assets over to others, software-as-a-service (SaaS) provides an increasingly attractive alternative. However, firms evaluating both SaaS options, as well as traditional on-premise options, must look beyond the pure cost tradeoffs. Often, differences in business benefits, flexibility, and risk are as important, if not more important, when comparing options. This document discusses SaaS-specific issues across the four dimensions included in Forrester's Total Economic Impact™ (TEI) model to provide a framework for the economic evaluation of a SaaS option.

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