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For Sourcing & Vendor Management Professionals

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July 13, 2009

The ROI Of Software-As-A-Service

A Total Economic Impact™ Analysis Uncovers Long-Term Value In SaaS

by Liz Herbert, Jon Erickson

with Christine Ferrusi Ross, Andrew Parker, Philipp Karcher

Average:
(1 rating)

This is an excerpt

Executive Summary

Firms almost always consider software-as-a-service (SaaS) as a cost-advantage over on-premise in the short run due to its quick implementation times and pay-as-you-go pricing. But many firms question the long-term value of SaaS, wondering if the rent-versus-own model necessarily has a cost crossover point and if so, when? As SaaS continues to move into a broader range of applications and into larger, more strategic deployments, Forrester examined client decisions across a range of SaaS solution areas and found that firms obtain long-term value with SaaS solutions.

TABLE OF CONTENTS

  • Firms Explore SaaS For More Strategic, Larger, Long-Term Investments
  • Three Factors Determine The ROI Of SaaS
  • Calculating ROI For SaaS Has Specific Considerations By Application Type
  • SaaS Can Be A Long-Term Win As Well — With Benefits Beyond Cost Savings

RECOMMENDATIONS

  • Sourcing Execs Should Weigh The Company-Specific Tradeoffs Of SaaS
  • Supplemental Material
  • Related Research Documents

This is an excerpt

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