Benefits of SaaS

http://www.readwriteweb.com/archives/office_20_day_2_recap.php 

In response to a question from the floor about whether or not SaaS is actually cheaper or whether that is just a marketing spin, Doug Harr from Ingres gave the example of a Siebel implementation for 150 salespeople that cost $1.5million. His new company implemented Salesforce.com which cost $140k/year for 130 users. 

 

Phil Wainewright brought up the issues around large businesses not going with SaaS due to their already sunken costs - again Doug Harr gave a great example where true total cost of ownership analysis can bring up surprising results - the costs and hassles with the old school behemoth software offerings are often sufficiently high to outweigh the monthly costs of a SaaS alternative.