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.

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