SaaS (Software as a Service) offers potential cost savings over traditional on-premise software by reducing upfront costs, ongoing maintenance and support costs, and providing more flexibility. However, organizations need to carefully calculate the TCO (total cost of ownership) and ROI (return on investment) of moving applications to SaaS. This requires considering various costs like subscriptions, setup, customization, as well as potential benefits like scalability, reduced IT workload, and vendor accountability. Performing a thorough analysis can help organizations determine if and how SaaS makes economic sense for their needs.
Software as a Service (SaaS): Custom Acquisition Strategies - LabGroup.com.auSusan Diaz
Software as a Service (SaaS) has the potential to transform the way information-technology (IT) departments relate to and even think about their role as providers of computing services to the rest of the enterprise.
This document provides guidance for CFOs considering moving an organization's ERP system to the cloud. It begins with definitions of cloud computing models and terms. It then discusses potential benefits of cloud ERP, such as cost savings, improved scalability, and enhanced security. Common concerns with cloud ERP are also addressed, like data security, ownership, and control. The document provides 35 questions for CFOs to consider in evaluating cloud vendors and solutions to understand related costs, capabilities, risks and flexibility.
The document discusses the growing adoption of cloud-based enterprise applications like ERP and CRM by businesses. While some businesses still have concerns about security and service quality with cloud-based ERP, the survey found that 71% of respondents are using business-critical cloud applications. CRM was the most commonly used cloud application at 52%. The document argues that cloud-based ERP offers benefits over traditional on-premise ERP like lower costs, easier upgrades, and greater flexibility, and that cloud will likely become the ERP standard over the next decade.
This document provides an overview of software as a service (SaaS). It discusses the evolution of SaaS from early hosted/ASP models (SaaS 1.0) to more sophisticated pure SaaS applications (SaaS 2.0) to current hybrid SaaS solutions (SaaS 3.0). Factors driving increased adoption of SaaS include the trend of IT outsourcing, cost savings compared to traditional software licensing, and SaaS vendors taking on security and infrastructure risks. The document also describes how SaaS works by providing on-demand access to applications from any internet-connected device and handling all hosting, maintenance, and support at the vendor level.
Crossing over to a SaaS option from an on-premise solution requires careful consideration. Key areas to examine include licensing changes from perpetual to user-based, loss of control over updates and product versions, proper alignment of internal use cases to subscription offerings, flexibility in the contract to adjust subscriptions over time, and reasonable notification of planned changes. While SaaS promises new features and potential benefits, there is no guarantee of major cost savings compared to the on-premise alternative.
CoreSite's 2019 SaaS Colocation Buyers Guide Mike Trawick
This document discusses how SaaS providers can win in a competitive landscape by partnering with the right data center. It begins by outlining the benefits of the SaaS model for both end users and providers, such as reduced costs and improved scalability. However, it also notes challenges like availability, performance, resources and security that can hamper SaaS providers if not addressed properly. The document then provides examples of worst case scenarios that can result, before detailing how partnering with a data center that offers centralized colocation with direct cloud connections and dedicated managed services can help SaaS providers optimize their hybrid infrastructure and better address these challenges. It positions CoreSite as such a partner that can enable a winning SaaS
The document discusses how the SaaS model is becoming an increasingly important trend and viable business model, especially during economic downturns when businesses seek to maximize technology ROI and efficiency with existing resources at lower costs. It notes that SaaS adoption will continue growing rapidly due to benefits like reduced costs, rapid deployment, centralized operations, and elastic scaling. Over the next five years, SaaS is expected to explode in prominence and change traditional business metrics and thinking, with the market evolving to include more niche providers and a blurring between SaaS and platform-as-a-service offerings.
Software as a Service (SaaS): Custom Acquisition Strategies - LabGroup.com.auSusan Diaz
Software as a Service (SaaS) has the potential to transform the way information-technology (IT) departments relate to and even think about their role as providers of computing services to the rest of the enterprise.
This document provides guidance for CFOs considering moving an organization's ERP system to the cloud. It begins with definitions of cloud computing models and terms. It then discusses potential benefits of cloud ERP, such as cost savings, improved scalability, and enhanced security. Common concerns with cloud ERP are also addressed, like data security, ownership, and control. The document provides 35 questions for CFOs to consider in evaluating cloud vendors and solutions to understand related costs, capabilities, risks and flexibility.
The document discusses the growing adoption of cloud-based enterprise applications like ERP and CRM by businesses. While some businesses still have concerns about security and service quality with cloud-based ERP, the survey found that 71% of respondents are using business-critical cloud applications. CRM was the most commonly used cloud application at 52%. The document argues that cloud-based ERP offers benefits over traditional on-premise ERP like lower costs, easier upgrades, and greater flexibility, and that cloud will likely become the ERP standard over the next decade.
This document provides an overview of software as a service (SaaS). It discusses the evolution of SaaS from early hosted/ASP models (SaaS 1.0) to more sophisticated pure SaaS applications (SaaS 2.0) to current hybrid SaaS solutions (SaaS 3.0). Factors driving increased adoption of SaaS include the trend of IT outsourcing, cost savings compared to traditional software licensing, and SaaS vendors taking on security and infrastructure risks. The document also describes how SaaS works by providing on-demand access to applications from any internet-connected device and handling all hosting, maintenance, and support at the vendor level.
Crossing over to a SaaS option from an on-premise solution requires careful consideration. Key areas to examine include licensing changes from perpetual to user-based, loss of control over updates and product versions, proper alignment of internal use cases to subscription offerings, flexibility in the contract to adjust subscriptions over time, and reasonable notification of planned changes. While SaaS promises new features and potential benefits, there is no guarantee of major cost savings compared to the on-premise alternative.
CoreSite's 2019 SaaS Colocation Buyers Guide Mike Trawick
This document discusses how SaaS providers can win in a competitive landscape by partnering with the right data center. It begins by outlining the benefits of the SaaS model for both end users and providers, such as reduced costs and improved scalability. However, it also notes challenges like availability, performance, resources and security that can hamper SaaS providers if not addressed properly. The document then provides examples of worst case scenarios that can result, before detailing how partnering with a data center that offers centralized colocation with direct cloud connections and dedicated managed services can help SaaS providers optimize their hybrid infrastructure and better address these challenges. It positions CoreSite as such a partner that can enable a winning SaaS
The document discusses how the SaaS model is becoming an increasingly important trend and viable business model, especially during economic downturns when businesses seek to maximize technology ROI and efficiency with existing resources at lower costs. It notes that SaaS adoption will continue growing rapidly due to benefits like reduced costs, rapid deployment, centralized operations, and elastic scaling. Over the next five years, SaaS is expected to explode in prominence and change traditional business metrics and thinking, with the market evolving to include more niche providers and a blurring between SaaS and platform-as-a-service offerings.
The document discusses the benefits of cloud computing for businesses. It describes the three main types of cloud services - Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). It outlines how cloud computing allows businesses to shift from a capital expenditure (CapEx) model to an operational expenditure (OpEx) model, providing more flexibility. Cloud also enables faster staff onboarding, responsiveness to changing business demands, and enhanced productivity across departments through a standardized environment. The cloud market is growing significantly and cloud adoption is becoming essential for businesses to thrive.
Agility, scale rate highly in cloud erp financial management systemsKaizenlogcom
This document discusses how companies are increasingly adopting cloud-based financial management tools instead of on-premises ERP systems. It notes that ERP functionality can now often be attained piecemeal through specialized cloud applications, rather than requiring a full ERP implementation. Companies are able to pick specific features like accounting, payroll or budgeting tools from various SaaS providers. The rise of these more flexible cloud options comes as business models are shifting from product-centric to more customer-centric approaches.
IRJET - An Overview of SaaS Model For Business ApplicationsIRJET Journal
This document provides an overview of the Software as a Service (SaaS) model for business applications. It discusses how SaaS allows businesses to start transactions immediately without large upfront investments in software or IT support. It also describes some key considerations for adopting SaaS, such as data security, scalability, and support from cloud service providers. While SaaS provides benefits like lower costs, easier upgrades, and flexibility, the document also outlines challenges to adopting SaaS like security concerns, integration between providers, and risk of vendor lock-in. It concludes that SaaS can provide strategic benefits to businesses but also requires planning to address issues around functionality, security, and change management.
This white paper compares SaaS-based IT Service Management software with on-premise, legacy solutions.
The paper highlights the additional benefits that can be achieved by choosing a SaaS-based system, and builds a strong business case that clearly demonstrates that SaaS-based IT Service Management solutions are far more cost-effective than their on-premise counterparts.
Get the white paper and learn how the SaaS approach delivers greater value to your company!
- Cloud computing provides cost savings for enterprises by allowing them to access software services over the internet rather than maintaining their own servers and software. However, tracking software usage for billing purposes under usage-based licensing models is complex.
- Flexera Software provides solutions that help software companies implement a spectrum of licensing models, from strict enforcement of usage to a more flexible "trust but verify" approach, to maximize revenues and ensure compliance.
- As cloud-based services continue growing, new hybrid deployment and pricing models are needed to address the complex needs of tracking usage across local and cloud-based software environments.
Best Practices for ERP Cloud Migrations: A CFO GuidebookKim Pike
You're ready to start your journey to ERP in the cloud - now what? In this guide, we'll discuss best practices to migrate safely to the cloud, and how to get the most value out of your cloud implementation.
For more information, contact info@emtecinc.com
This document discusses the benefits of cloud computing for finance organizations. It notes that most mid-sized businesses are running outdated versions of their on-premise ERP systems due to the difficulty of upgrades. Cloud ERP solutions allow automatic upgrades to the latest version without customization issues. The key benefits identified are lower total cost of ownership through reduced IT costs, anytime access to data from any device, and easier upgrades. Common concerns about cloud solutions like security, data ownership and customization are addressed. Overall, cloud ERP is argued to provide better security, availability and innovation than traditional on-premise models through vendor economies of scale and specialization.
SaaS Revenue Recognition Principles: How to Treat Setup and Implementation Fe...Armanino LLP
Our latest survey of SaaS companies reveals two compelling shifts in revenue recognition.
As SaaS business models and GAAP revenue rules have evolved, companies have adapted their revenue recognition practice, especially in light of the new FASB/IASB revenue recognition standards (effective for public companies in 2017 and private companies in 2018).
Our new SaaS survey analyzes these changing practices and offers insights that can help you evaluate your company’s revenue recognition policies and disclosures.
The results revealed two compelling trends around non-subscription revenues.
Non-subscription revenue recognition remains a moving target for many SaaS companies, which means finance teams must continue to revisit the accuracy, transparency and completeness of their own rev rec policies and disclosures. How do your revenue best practices compare to your peers?
This document defines and describes Software as a Service (SaaS). It explains that SaaS is software deployed over the internet and accessed online rather than installed locally. Key advantages listed include accessibility from anywhere, no server maintenance requirements, scalability, and a pay-per-use pricing model. Examples provided are Gmail, Google Docs, and Salesforce. The document also discusses related concepts like Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and differences between SaaS and on-premise software.
Embracing SaaS: Strategies of Winning OrganizationsArmen Najarian
Find out how forward-thinking enterprises are leveraging Software-as-a-Service (SaaS) to propel their businesses forward. Hear the results of new research from the IBM Center for Applied Insights and a global survey of over 800 Business and IT decision-makers driving SaaS and cloud adoption decisions. The study reveals that over 80% of respondents embrace SaaS to enhance the customer experience, enable more strategic business decisions, and accelerate internal and external collaboration. Learn how leading companies are using SaaS as a competitive advantage across the enterprise.
This document analyzes cloud opportunities for Big4 in India. It provides an industry overview noting cloud's growth and how Indian SMBs are poised to adopt cloud. The document outlines opportunities for Big4 in cloud strategy, CRM/ERP-as-a-service, and developing cloud solutions. Potential partners are identified in various cloud areas. Key industries for cloud focus include manufacturing, healthcare, education, retail, and media. The document concludes by thanking the reader.
Cloud-based accounting solutions provide numerous benefits over traditional on-premise systems such as reduced total cost of ownership, improved scalability and flexibility, and enhanced data security. Quatrro has developed an innovative platform-based accounting model built on cloud concepts like multitenancy and skill-based routing to deliver affordable accounting solutions to small and medium businesses. Their solution automates key accounting functions through a client portal and centralized platform to improve efficiency while reducing costs and onboarding timelines.
This document provides an overview of Software as a Service (SaaS), including its benefits and considerations for companies. SaaS delivers software applications via the internet instead of installing them locally. Key benefits include lower and more predictable costs, reduced IT expenses, constant software updates, high availability, and mobility. However, companies must consider that SaaS requires an internet connection to function and depends on the security and availability of the provider's infrastructure. Overall, SaaS can help companies increase flexibility and decrease costs compared to locally installed software.
The ERP SaaS market is still immature with few true cloud providers like Salesforce, Infor, and SAP. When choosing a cloud ERP, organizations should consider how well it integrates with other applications, potential lack of customization, reliability, security, and regulatory compliance. While cloud ERP offers lower costs, organizations must ensure it actually saves money in the long run. The cloud model is well suited for small businesses that want to avoid large implementations and focus on core operations.
SaaS Revenue Recognition Principles: How a SaaS Company Should Treat Setu...Armanino LLP
In 2010, when the new revenue standards1 were issued by the FASB, Armanino McKenna surveyed the early adopting public SaaS companies to see if implementation/setup fees were being recognized as delivered, rather than deferred, as allowed under the new rules.
Sponsor presentation about the 2010 Gartner Application Architecture, Development & Integration Summit (Nov 15-17 in Los Angeles) www.gartner.com/us/aadi
Taking the Next Step in CTRM Cloud SolutionsCTRM Center
In the last decade, a quiet revolution has occurred within the E/CTRM (Energy/Commodity Trading and Risk Management) software category as vendors and users have increasingly adopted the cloud-computing model. This move has been driven by demand largely for more affordable E/CTRM software as reflected by a lower total cost of ownership. Increasing regulatory and shareholder scrutiny has meant that even smaller commodity traders need to abandon spreadsheets and similar unstructured and difficult to audit tools in favor of more robust solutions. However, even the smallest of commodity trading companies has pretty broad and complex requirements meaning that they actually still require a fully-fledged application to meet their needs, but one that fits within a budget that reflects the size of their business.
In recent years, consumer and business cloud-based applications have begun to catch on and that familiarity does seem to have benefited the E/CTRM in the cloud market as well, as customers are now much more familiar with the benefits than they were 5 years ago. It is important to note that it’s not just the smaller commodity traders that see the potential benefits of a cloud-based solution either. Recent ComTech research suggested that, in general, all buyers of E/CTRM software are increasingly open to considering alternatives to the traditional “on premises” implementation model. While a small, but committed, minority continue to resist anything but the traditional on-premises implementation approach, the overwhelming majority of respondents will consider cloud deployment for a variety of vertical application areas in and around commodity trading.
The document discusses how "everything as a service" or XaaS is transforming businesses by allowing them to operate core business functions through cloud-based solutions. These "BusinessCloud" solutions allow companies to both "run better" by reducing costs and gaining efficiencies, as well as "run differently" by developing new business models and ways of operating. Examples discussed include medical management as a service to reduce health plan costs and 3D printing as a service to change dynamics for manufacturers. The document argues that BusinessCloud solutions empower businesses to rethink their operations and gain strategic advantages through new, more flexible operating models.
Software Licensing In The Cloud (CloudWorld 2009)Stuart Charlton
This document discusses challenges with traditional software licensing models in the cloud environment and proposes solutions using cloud modeling and entitlement languages. Specifically, it notes that on-demand access strains current rigid licensing but a full shift to "as a service" is unlikely. It proposes using hyperlinked cloud modeling languages to describe software, architecture, and infrastructure along with entitlements. A cloud entitlements reference architecture and minimal entitlements language are suggested to help resolve technical barriers to software licensing in cloud computing.
The document provides an overview of Software-as-a-Service (SaaS) and its advantages for law firms compared to traditional on-premise software. SaaS applications are hosted in the cloud and accessed via the internet, eliminating the need for law firms to manage their own infrastructure. This reduces costs while improving access, availability, and ease of updates. SaaS vendors also focus on providing a superior user experience. Key benefits include lower upfront costs, less downtime for upgrades, scalability, device-independent access from anywhere, and ongoing support from vendors. Security, privacy, and costs are also addressed as factors law firms consider when evaluating SaaS.
This document discusses the advantages of HR automation software delivered as software-as-a-service (SaaS). It notes that nearly 90% of organizations plan to maintain or increase their usage of SaaS solutions due to lower total cost of ownership compared to on-premise software, easier deployment, and lack of in-house IT resources. The document outlines key benefits of SaaS for HR automation such as 24/7 access, lower costs, automatic upgrades, and scalability. It also discusses factors that differentiate true multi-tenant SaaS solutions from those that are not fully cloud-based.
The document discusses the benefits of cloud computing for businesses. It describes the three main types of cloud services - Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). It outlines how cloud computing allows businesses to shift from a capital expenditure (CapEx) model to an operational expenditure (OpEx) model, providing more flexibility. Cloud also enables faster staff onboarding, responsiveness to changing business demands, and enhanced productivity across departments through a standardized environment. The cloud market is growing significantly and cloud adoption is becoming essential for businesses to thrive.
Agility, scale rate highly in cloud erp financial management systemsKaizenlogcom
This document discusses how companies are increasingly adopting cloud-based financial management tools instead of on-premises ERP systems. It notes that ERP functionality can now often be attained piecemeal through specialized cloud applications, rather than requiring a full ERP implementation. Companies are able to pick specific features like accounting, payroll or budgeting tools from various SaaS providers. The rise of these more flexible cloud options comes as business models are shifting from product-centric to more customer-centric approaches.
IRJET - An Overview of SaaS Model For Business ApplicationsIRJET Journal
This document provides an overview of the Software as a Service (SaaS) model for business applications. It discusses how SaaS allows businesses to start transactions immediately without large upfront investments in software or IT support. It also describes some key considerations for adopting SaaS, such as data security, scalability, and support from cloud service providers. While SaaS provides benefits like lower costs, easier upgrades, and flexibility, the document also outlines challenges to adopting SaaS like security concerns, integration between providers, and risk of vendor lock-in. It concludes that SaaS can provide strategic benefits to businesses but also requires planning to address issues around functionality, security, and change management.
This white paper compares SaaS-based IT Service Management software with on-premise, legacy solutions.
The paper highlights the additional benefits that can be achieved by choosing a SaaS-based system, and builds a strong business case that clearly demonstrates that SaaS-based IT Service Management solutions are far more cost-effective than their on-premise counterparts.
Get the white paper and learn how the SaaS approach delivers greater value to your company!
- Cloud computing provides cost savings for enterprises by allowing them to access software services over the internet rather than maintaining their own servers and software. However, tracking software usage for billing purposes under usage-based licensing models is complex.
- Flexera Software provides solutions that help software companies implement a spectrum of licensing models, from strict enforcement of usage to a more flexible "trust but verify" approach, to maximize revenues and ensure compliance.
- As cloud-based services continue growing, new hybrid deployment and pricing models are needed to address the complex needs of tracking usage across local and cloud-based software environments.
Best Practices for ERP Cloud Migrations: A CFO GuidebookKim Pike
You're ready to start your journey to ERP in the cloud - now what? In this guide, we'll discuss best practices to migrate safely to the cloud, and how to get the most value out of your cloud implementation.
For more information, contact info@emtecinc.com
This document discusses the benefits of cloud computing for finance organizations. It notes that most mid-sized businesses are running outdated versions of their on-premise ERP systems due to the difficulty of upgrades. Cloud ERP solutions allow automatic upgrades to the latest version without customization issues. The key benefits identified are lower total cost of ownership through reduced IT costs, anytime access to data from any device, and easier upgrades. Common concerns about cloud solutions like security, data ownership and customization are addressed. Overall, cloud ERP is argued to provide better security, availability and innovation than traditional on-premise models through vendor economies of scale and specialization.
SaaS Revenue Recognition Principles: How to Treat Setup and Implementation Fe...Armanino LLP
Our latest survey of SaaS companies reveals two compelling shifts in revenue recognition.
As SaaS business models and GAAP revenue rules have evolved, companies have adapted their revenue recognition practice, especially in light of the new FASB/IASB revenue recognition standards (effective for public companies in 2017 and private companies in 2018).
Our new SaaS survey analyzes these changing practices and offers insights that can help you evaluate your company’s revenue recognition policies and disclosures.
The results revealed two compelling trends around non-subscription revenues.
Non-subscription revenue recognition remains a moving target for many SaaS companies, which means finance teams must continue to revisit the accuracy, transparency and completeness of their own rev rec policies and disclosures. How do your revenue best practices compare to your peers?
This document defines and describes Software as a Service (SaaS). It explains that SaaS is software deployed over the internet and accessed online rather than installed locally. Key advantages listed include accessibility from anywhere, no server maintenance requirements, scalability, and a pay-per-use pricing model. Examples provided are Gmail, Google Docs, and Salesforce. The document also discusses related concepts like Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and differences between SaaS and on-premise software.
Embracing SaaS: Strategies of Winning OrganizationsArmen Najarian
Find out how forward-thinking enterprises are leveraging Software-as-a-Service (SaaS) to propel their businesses forward. Hear the results of new research from the IBM Center for Applied Insights and a global survey of over 800 Business and IT decision-makers driving SaaS and cloud adoption decisions. The study reveals that over 80% of respondents embrace SaaS to enhance the customer experience, enable more strategic business decisions, and accelerate internal and external collaboration. Learn how leading companies are using SaaS as a competitive advantage across the enterprise.
This document analyzes cloud opportunities for Big4 in India. It provides an industry overview noting cloud's growth and how Indian SMBs are poised to adopt cloud. The document outlines opportunities for Big4 in cloud strategy, CRM/ERP-as-a-service, and developing cloud solutions. Potential partners are identified in various cloud areas. Key industries for cloud focus include manufacturing, healthcare, education, retail, and media. The document concludes by thanking the reader.
Cloud-based accounting solutions provide numerous benefits over traditional on-premise systems such as reduced total cost of ownership, improved scalability and flexibility, and enhanced data security. Quatrro has developed an innovative platform-based accounting model built on cloud concepts like multitenancy and skill-based routing to deliver affordable accounting solutions to small and medium businesses. Their solution automates key accounting functions through a client portal and centralized platform to improve efficiency while reducing costs and onboarding timelines.
This document provides an overview of Software as a Service (SaaS), including its benefits and considerations for companies. SaaS delivers software applications via the internet instead of installing them locally. Key benefits include lower and more predictable costs, reduced IT expenses, constant software updates, high availability, and mobility. However, companies must consider that SaaS requires an internet connection to function and depends on the security and availability of the provider's infrastructure. Overall, SaaS can help companies increase flexibility and decrease costs compared to locally installed software.
The ERP SaaS market is still immature with few true cloud providers like Salesforce, Infor, and SAP. When choosing a cloud ERP, organizations should consider how well it integrates with other applications, potential lack of customization, reliability, security, and regulatory compliance. While cloud ERP offers lower costs, organizations must ensure it actually saves money in the long run. The cloud model is well suited for small businesses that want to avoid large implementations and focus on core operations.
SaaS Revenue Recognition Principles: How a SaaS Company Should Treat Setu...Armanino LLP
In 2010, when the new revenue standards1 were issued by the FASB, Armanino McKenna surveyed the early adopting public SaaS companies to see if implementation/setup fees were being recognized as delivered, rather than deferred, as allowed under the new rules.
Sponsor presentation about the 2010 Gartner Application Architecture, Development & Integration Summit (Nov 15-17 in Los Angeles) www.gartner.com/us/aadi
Taking the Next Step in CTRM Cloud SolutionsCTRM Center
In the last decade, a quiet revolution has occurred within the E/CTRM (Energy/Commodity Trading and Risk Management) software category as vendors and users have increasingly adopted the cloud-computing model. This move has been driven by demand largely for more affordable E/CTRM software as reflected by a lower total cost of ownership. Increasing regulatory and shareholder scrutiny has meant that even smaller commodity traders need to abandon spreadsheets and similar unstructured and difficult to audit tools in favor of more robust solutions. However, even the smallest of commodity trading companies has pretty broad and complex requirements meaning that they actually still require a fully-fledged application to meet their needs, but one that fits within a budget that reflects the size of their business.
In recent years, consumer and business cloud-based applications have begun to catch on and that familiarity does seem to have benefited the E/CTRM in the cloud market as well, as customers are now much more familiar with the benefits than they were 5 years ago. It is important to note that it’s not just the smaller commodity traders that see the potential benefits of a cloud-based solution either. Recent ComTech research suggested that, in general, all buyers of E/CTRM software are increasingly open to considering alternatives to the traditional “on premises” implementation model. While a small, but committed, minority continue to resist anything but the traditional on-premises implementation approach, the overwhelming majority of respondents will consider cloud deployment for a variety of vertical application areas in and around commodity trading.
The document discusses how "everything as a service" or XaaS is transforming businesses by allowing them to operate core business functions through cloud-based solutions. These "BusinessCloud" solutions allow companies to both "run better" by reducing costs and gaining efficiencies, as well as "run differently" by developing new business models and ways of operating. Examples discussed include medical management as a service to reduce health plan costs and 3D printing as a service to change dynamics for manufacturers. The document argues that BusinessCloud solutions empower businesses to rethink their operations and gain strategic advantages through new, more flexible operating models.
Software Licensing In The Cloud (CloudWorld 2009)Stuart Charlton
This document discusses challenges with traditional software licensing models in the cloud environment and proposes solutions using cloud modeling and entitlement languages. Specifically, it notes that on-demand access strains current rigid licensing but a full shift to "as a service" is unlikely. It proposes using hyperlinked cloud modeling languages to describe software, architecture, and infrastructure along with entitlements. A cloud entitlements reference architecture and minimal entitlements language are suggested to help resolve technical barriers to software licensing in cloud computing.
The document provides an overview of Software-as-a-Service (SaaS) and its advantages for law firms compared to traditional on-premise software. SaaS applications are hosted in the cloud and accessed via the internet, eliminating the need for law firms to manage their own infrastructure. This reduces costs while improving access, availability, and ease of updates. SaaS vendors also focus on providing a superior user experience. Key benefits include lower upfront costs, less downtime for upgrades, scalability, device-independent access from anywhere, and ongoing support from vendors. Security, privacy, and costs are also addressed as factors law firms consider when evaluating SaaS.
This document discusses the advantages of HR automation software delivered as software-as-a-service (SaaS). It notes that nearly 90% of organizations plan to maintain or increase their usage of SaaS solutions due to lower total cost of ownership compared to on-premise software, easier deployment, and lack of in-house IT resources. The document outlines key benefits of SaaS for HR automation such as 24/7 access, lower costs, automatic upgrades, and scalability. It also discusses factors that differentiate true multi-tenant SaaS solutions from those that are not fully cloud-based.
Today, Companies increase their usage of SaaS across multiple applications, larger user base and most mission-critical applications. An interesting trend now is that the established large enterprises are beginning to replace on-premise applications with on-Demand applications based on SaaS principles.
Software as a service (SaaS) is a software distribution model where applications are hosted by a vendor and accessed online by customers. With SaaS, software is deployed as an online service rather than installed locally. This reduces upfront costs for customers and allows vendors to easily update applications for all users. Key considerations for SaaS include enabling applications to securely serve multiple customers simultaneously and facilitating some level of customization.
The SaaS Business Model: All Information For SaaS-based company ISHIR
The SaaS business model is also known as a SaaS revenue strategy, which helps generate income from cloud-hosted Software. Know about SaaS benefits, how SaaS companies work, and examples of SaaS Companies. Read complete information in the blog.
SaaS Application Development Services | SaaS Development CompanyDream Cyber Infoway
The document discusses how businesses are increasingly adopting cloud-based Software as a Service (SaaS) systems over traditional IT systems. It provides several key reasons for this transition, including that SaaS provides agility that enhances business prospects, offers scalability and pay-per-use pricing, reduces infrastructure costs, and helps businesses earn more revenue through monthly subscription fees rather than large upfront costs. SaaS also ensures automated data backups and reduces software piracy risks compared to traditional software models.
Software as a Service (SaaS) is presently one of the best services serve by Cloud computing. It is software archetype in which applications are hosted, regulate, and stored in the service provider database. The recognition of SaaS has grown at speed over the last decade and shows no signs of slowing down. In this article, we have recorded the pros of SaaS for your business operations.
The document discusses Software as a Service (SaaS) and its benefits and challenges. SaaS promises lower costs, easier maintenance, and faster deployment compared to traditional on-premise software. However, SaaS also faces challenges around technical readiness, generating demand, scaling effectively, and staying ahead of competition. The transition to SaaS requires changes to business models, technology, and marketing strategies.
The document discusses how the SaaS model is becoming an increasingly important trend and viable business model, especially during economic downturns when businesses seek to maximize technology ROI and efficiency with existing resources at lower costs. It notes that SaaS adoption will continue to rapidly grow over the next five years and change traditional business metrics and thinking. Key benefits of SaaS include reducing capital and IT labor costs through shared infrastructure and resources, rapid provisioning, centralized operations, and elastic scaling to improve service levels.
The document provides an overview of Software as a Service (SaaS) including:
- SaaS is a software delivery model that provides remote access to software via the web for a recurring fee, enabling users to access functionality hosted by the provider.
- SaaS is a subset of cloud computing where resources are provided as a service over the internet.
- Major benefits of SaaS include lower costs, quick access to updates, and reduced need for infrastructure management.
The majority of survey respondents (71%) are unfamiliar with or in the education phase of cloud computing, while only 11% have plans to implement cloud initiatives in 2010. Many software companies are rapidly expanding their portfolio of cloud offerings across infrastructure, platform, and software services. Transitioning to a software-as-a-service (SaaS) model provides benefits like reduced costs, faster implementation, scalability, and security, but established software companies face challenges adapting their business models, partnerships, and operations to the SaaS approach. Recurring revenue from SaaS contracts is a key driver of higher business valuations for software companies.
This document discusses Software as a Service (SaaS) and when it may be preferable to traditional on-premise software for finance technologies. It finds that SaaS offers lower upfront costs, faster implementation, and easier upgrades than on-premise options. However, concerns include data security, customization limitations, and reliance on internet connectivity. SaaS maturity varies by application, with ERP becoming more cloud-based and specialized finance functions often having proven SaaS solutions. Companies should consider SaaS when requirements can be met, costs are lower over time, and legal/security issues are addressed by the vendor.
P3DS - A Cloud-based Platform for Professional Services FirmsChris Taylor
This document discusses opportunities for professional services firms to offer cloud-based software-
as-a-service applications to their small and medium-sized business customers. It notes that SMBs
are eager adopters of cloud-based SaaS apps and that professional services firms are well-
positioned to identify and provide the right apps. The document outlines the components needed for
a successful cloud-based platform, such as application directories, identity management, billing
systems, and customer support.
The document discusses the growing adoption of cloud computing and SaaS models. It notes that while 71% of organizations are still in the education phase of cloud computing, the number planning or implementing initiatives is growing. It also outlines some of the key benefits of SaaS models like reduced costs, faster implementation, scalability, and recurring revenue opportunities. Established software companies are encouraged to develop SaaS offerings to capitalize on these advantages and increase their business valuations.
The document discusses key concepts related to Software as a Service (SaaS) and the DNA of SaaS companies. It notes that SaaS represents a philosophical shift towards more customer-centric solutions delivered as a service through web-based applications. SaaS companies operate using a single code base that supports thousands of customers through a multi-tenant architecture and offer frequent upgrades on a pay-as-you-go model. The DNA of SaaS companies includes service-based relationships, web-delivered applications, and ongoing support through centralized hosting and management.
Cloud computing provides IT resources and services over the Internet. There are three main service models - Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). SaaS provides applications to users while the provider manages the infrastructure. PaaS provides platforms for developers to create applications without worrying about infrastructure. IaaS provides basic computing and storage infrastructure for users to deploy and run software.
This document compares cloud-based ERP delivery options of software-as-a-service (SaaS) and hosted/outsourced models. With SaaS, customers pay a subscription fee for software and infrastructure access, while hosted ERP involves a third party managing infrastructure for a core ERP package. Both have implementation costs, but SaaS requires pre-paying for multi-year contracts while hosted ERP involves annual maintenance fees after an initial software purchase. Key considerations for companies include costs, customization needs, and support requirements.
SaaS is a software deployment model where applications are hosted and managed remotely by a vendor or service provider and made available to customers over the Internet. Key characteristics include usage-based pricing, no upfront license fees, automatic updates and upgrades, and no installation required on the user's device. SaaS is expected to grow significantly as companies look to reduce IT costs and drive adoption across the enterprise.
1. SaaS Saves Money & Improves Operations:
TCO and ROI Calculations Help Make the Case
White Paper: Benefits of SaaS
2. SaaS Saves Money & Improves Operations:
TCO and ROI Calculations Help Make the Case
Introduction
Software-as-a-Service (SaaS) continues to gain traction over traditional on-premise software licensing models as
organizations aggressively seek more cost-effective, flexible and robust computing solutions.
SaaS delivers services much in the same way utilities deliver water or electricity, enabling new forms of consumption, such
as subscription and pay-per-use models, that allow companies to use and pay for software only when they need it. Though
still evolving, SaaS solutions are gaining acceptance rapidly for their ability to deliver shared and scalable resources to
computers, smartphones, network-connected appliances, and other devices on-demand, over the Internet.
SaaS is rooted in an earlier model known as the Application Service Provider (ASP). In this model, service providers hosted
and maintained applications for customers at vendor-owned and operated data centers. Several factors, which led to the
demise of the ASP model, have been successfully addressed by SaaS. For example, while ASPs relied on high-cost delivery
mechanisms, such as private networks, SaaS reduces delivery costs using the Internet as a delivery platform while
subscription and pay-per-use models have largely replaced costly per-seat licensing agreements.
The number of organizations adopting SaaS is growing at a healthy rate. Gartner Research estimates worldwide SaaS
revenue within the enterprise application software market will surpass $8.5 billion in 2010; up 14.1 percent from 2009
revenue of $7.5 billion.1
Few would argue that SaaS holds a lot of promise as a cost-effective and robust model for applications. However,
organizations still need to map the total cost of ownership (TCO) and return on investment (ROI) for each and every
application that is moved to a SaaS model. SaaS pricing models are different than traditional on-premise computing and
ASP models. In addition, soft costs and returns, such as people, productivity and time-to-market, are difficult to nail down.
Such disparities make apples-to-apples comparisons difficult to construct.
This paper will help you understand and calculate the true costs of SaaS to determine what benefits this important
resource-maximizing approach can offer your company now and in the future.
1-http://www.gartner.com/it/page.jsp?id=1406613 Gartner report - “Forecast Analysis: Software as a Service, Worldwide, 2009-2014”.
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3. SaaS Saves Money & Improves Operations:
TCO and ROI Calculations Help Make the Case
Defining the Terms
For years, organizations have made large investments, including significant up-front payments, to purchase and
implement client/server-based software in privately owned data centers, branch offices and other facilities. The initial
purchase of this on-premise software is typically budgeted as a capital expenditure. Additional payments for add-ons
including support, maintenance, advanced packages, renewals and upgrades and more are funded via operational
budgets. As the business grows and adds employees, more software licenses must be purchased to satisfy the license
agreement.
Nearly every organization maintains some type of traditional, on-premise software and hardware, but SaaS models that
offer more attractive usage and payment models are growing quickly. Sales of cloud computing products (also referred to
as SaaS) have topped $16 billion in annual revenues according to IDC. By 2014, cloud computing will generate almost $56
billion in annual revenue.2
Gartner Research defines SaaS as "software that is owned, delivered and managed remotely by one or more providers. The
provider delivers an application based on a single set of common code and data definitions, which is consumed in a one-
to-many model by all contracted customers anytime on a pay-for-use basis or as a subscription based on use metrics."3
While SaaS has its roots in ASP software models, it more closely resembles hosted, enterprise Web applications that began
appearing a few years ago. Web-based models introduced the use of applications that required no hardware, in-house
maintenance or capital expenses. But today’s SaaS offerings are much savvier than simple hosted offerings. They are often
based on multi-tenancy architectures, meaning a single instance of the software runs on a server and can serve multiple
client organizations (tenants). With a multi-tenant architecture, a software application is designed to virtually partition its
data and configuration, and each client organization works with a customized virtual application instance. In a SaaS
implementation, the vendor takes care of the support, training, infrastructure and security risks in exchange for recurring
subscription fees.4
The Value of SaaS
Organizations that plan to or have already implemented a SaaS model view it as a strategic alternative to on-premise
applications. Many point to the immediate cost savings associated with quick implementation times and pay-as-you-go
pricing. There are other advantages, too. Support costs are reduced, as are maintenance costs. The need for excess
capacity to handle occasional or seasonal spikes in volume can be eliminated. Help desks and server support teams can be
reduced and transferred to higher value roles.5
The very nature of a SaaS offering – software which is owned and maintained by a third party – means organizations rid
themselves of software ownership and all that comes with ownership. Organizations implementing SaaS do pay
subscription costs, but they avoid costs related to the hours spent by IT staffers who must maintain software installations,
licenses, and ongoing upgrade schedules, freeing up these employees to work on more innovative tasks. Associated
hardware costs can also be reduced or even eliminated. IT upgrades and more extensive overhauls also can be less
expensive in a SaaS model, compared with on-premise computing. When an on-premise application needs to be
2-http://www.idc.com/research/viewdocsynopsis.jsp?containerId=223549§ionId=null&elementId=null&pageType=SYNOPSIS
3-Forecast Analysis: Software as a Service, Worldwide, 2009-2014”. The report is available on Gartner’s website at http://www.gartner.com/resId=1393813
4-Software & Information Industry Association’s paper, “Software as a Service: A Comprehensive Look at the Total Cost of Ownership of Software Applications” (http://www.bi101.com/documents/white%20papers/
accountsiq_wp.pdf)
5-"The ROI of Software-As-A-Service,” Forrester Research
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4. SaaS Saves Money & Improves Operations:
TCO and ROI Calculations Help Make the Case
completely replaced, the initial costs associated with that can be extensive, and the disruption and time-to-implement can
be very taxing to an IT department.
Organizations also can more effectively and efficiently plan for and manage growth. According to the Software &
Information Industry Association, this scalability derives from the fact that “SaaS applications grow with you as your
business grows.”6 With a SaaS model, for example, companies can more easily add users. No new licenses are required and
client software doesn’t have to be rolled out to more workstations. Fewer infrastructures are required to support the new
users. Fewer training sessions are needed when more users are added, and fewer ancillary staff members are needed to
manage the additional software seats. Equally important, if software needs to be scaled down, SaaS offers that flexibility –
without a huge loss associated with a capital investment that can no longer be used.
Reducing, or even eliminating, many of the expenses associated with software can breathe new life into an IT budget. In
addition, the predictability of on-going subscription costs can make budgeting easier. Ultimately, the savings and
advantages of a SaaS-based system make IT budgets go further and do more.
Finally, as the Software & Information Industry Association points out, SaaS vendors have greater accountability because
of the subscription-based model. There are service level agreements (SLAs) relating to support and operations that must
be met and are often backed with financial guarantees.
ROI Calculation
Forrester Research has identified several key considerations in determining the ROI of SaaS. They created its Total
Economic Impact (TEI) model to help companies consider three fundamental aspects of SaaS ROI.7
• Benefits - How will your company benefit from SaaS?
• Costs - How will your company pay, both in hard costs and resources, for SaaS?
• Risks – How do uncertainties change the total impact of SaaS on your business?
Forrester Research’s TEI model for determining the ROI of SaaS includes comparisons with traditional on-premise
software. For example, it compares the subscription costs of SaaS against the greater upfront costs of on-premise
software, maintenance, upgrades and support costs. Considering all elements, Forrester Research estimates yearly costs
remain lower for on-premise but increase during upgrade cycles, which represent about 65% of the initial costs of
implementation in year eight.
Forrester Research gives SaaS a significant advantage in benefits while the differences in flexibility aren’t quite as clear-
cut. Greater risks can be found in on-premise implementations that originate from deployment complexities, training
needs, and support issues, according to the research company report.
When considering your own ROI analysis, be sure to include all the cost, benefit, flexibility and risk elements associated
with implementation, deployment, staff, resources, and upgrades. And don’t forget that TCO must be part of the overall
ROI calculation.8
6-SIIA: “Software as a Service: A Comprehensive Look at the Total Cost of Ownership of Software Applications” (http://www.bi101.com/documents/white%20papers/accountsiq_wp.pdf)
7-“The ROI of Software-As-A-Service,” Forrester Research
8-“Comparing The ROI Of SaaS Versus On-Premise Using Forrester’s TEI™ Approach”
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5. SaaS Saves Money & Improves Operations:
TCO and ROI Calculations Help Make the Case
The TCO of SaaS: What's Included?
The Software & Information Industry Association has identified five costs when calculating the TCO of a SaaS
implementation:9
• Capital Expenses – SaaS models do not incur capital expenditures. Most SaaS models have a recurring cost
structure that continues on a monthly or annual basis for as long as you use the service. There are no perpetual
software licenses to buy, and there is no infrastructure to purchase.
• Design and Deployment Costs – Typically, SaaS software can be deployed and put into production much
faster. However, if the SaaS model is multi-tenant, there may be fewer ways to customize the application to fit
the business process.
• Ongoing Infrastructure Costs – Other than network needs (i.e., Internet bandwidth) and software associated
with maximizing bandwidth, there are almost no incremental infrastructure costs. There may be some minimal
client or desktop software required. When integration is required, there may be application programming
interface (API) development required to configure the SaaS application with any backend databases or other
existing enterprise applications.
• Ongoing Operations, Training and Support Costs – SaaS vendors are responsible for the end-to-end delivery
of the application. That includes operational support and maintenance. Many SaaS vendors offer ongoing
training.
• Intangible Costs – Never easy to calculate, intangible costs include such things as reliability and availability,
interoperability, extensibility, security, scalability, capacity, and opportunity costs.
Subscription fees charged by a vendor comprise the largest component of the TCO equation. However, any SaaS
implementation will likely include setup fees, application testing, API configurations, the launch, end user awareness,
administration (i.e., end user management), usage analysis and some cost allocations.10
Summary
A growing number of companies are adopting SaaS computing models, and all market research indicates that trend will
continue. The benefits are many. Maintenance, management and support requirements become the responsibility of the
SaaS provider. Costs associated with those requirements are either reduced or eliminated. IT personnel needs are eased
and growth can be more effectively planned and managed. Vendor accountability (and ultimately performance) is
increased.
These benefits and more add up to an attractive model for IT departments which continue to struggle to find a balance
between tight budgets and limited staff and resources. Nonetheless, prudent organizations will continue to perform the
necessary ROI and TCO analysis. The good news is that, after those calculations, the analysis will err on the side of SaaS.
9-SIIA: “Software as a Service: A Comprehensive Look at the Total Cost of Ownership of Software Applications” (http://www.bi101.com/documents/white%20papers/accountsiq_wp.pdf)
10-SIIA: “Software as a Service: A Comprehensive Look at the Total Cost of Ownership of Software Applications” (http://www.bi101.com/documents/white%20papers/accountsiq_wp.pdf)
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