Monday, September 8, 2008

Benefits of SaaS

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. 

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