For IT Services Professionals

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	September 1, 2006 The Financial Economic Impact Of Software-As-A-Service by Liz Herbert with Chip Gliedman, Francesca Bartolomey	Average: 9  (1 rating)

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Executive Summary

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.

TABLE OF CONTENTS

• Firms Of All Sizes Are Weighing Advantages Of SaaS
• Beyond SaaS TCO, Firms Must Consider Benefit, Risk, And Flexibility

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• Make A SaaS Decision With Your Eyes Open
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