{"id":5885,"date":"2014-04-17T21:00:53","date_gmt":"2014-04-17T21:00:53","guid":{"rendered":"http:\/\/aerocominc.com\/?p=5885"},"modified":"2015-05-07T15:58:45","modified_gmt":"2015-05-07T22:58:45","slug":"cost-comparison-on-premise-software-vs-saas","status":"publish","type":"post","link":"https:\/\/www.aerocominc.com\/info\/cost-comparison-on-premise-software-vs-saas\/","title":{"rendered":"Cost Comparison: On-premise Software vs. SaaS"},"content":{"rendered":"<p>If you are stuck considering between a <a href=\"http:\/\/aerocominc.com\/products\/\"><span style=\"text-decoration: underline;\"><strong>Software as a Service<\/strong> <\/span><\/a>versus a traditional on-premise software application, then you should take into fact these some key factors to keep in mind when calculating TCO and ROI. <strong>SaaS solutions<\/strong> will represent the best value in terms of true TCO. Both the software providers and customers will benefit the most from the cloud\u2019s economic model.<\/p>\n<p>This is a comparison of a traditional software package versus a SaaS solution over a 3-year period.<\/p>\n<p><strong>On-premise application:<\/strong><\/p>\n<ul>\n<li>License fee: $10,000 for 5 users<\/li>\n<li>20% maintenance fee per year (usually $6,000)<\/li>\n<li>Bottom line\/Total cost over 3 yrs: $16,000<\/li>\n<\/ul>\n<p><strong>SaaS application:<\/strong><\/p>\n<ul>\n<li>Flat month fee per used: $100\/month or $1,200\/yr<\/li>\n<li>5 users per year: $6,000\/yr<\/li>\n<li>Bottom line\/Total cost over 3 yrs: $18,000<\/li>\n<\/ul>\n<p>It looks like the <em>SaaS application<\/em> is more costlier to the customer but do not stop the numbers there! Take in consideration the overall expenditures such as maintenance and upgrades.<\/p>\n<p><strong>The cost for having an on-premise application add up with items such as:<\/strong><\/p>\n<ul>\n<li>Equipment\/proper hardware<\/li>\n<li>Post-installation upgrades and patches<\/li>\n<\/ul>\n<p>A <strong>SaaS solution<\/strong> will have these costs covered by the service provider leaving the user with only a flat, monthly usage fee.<\/p>\n[php snippet=8]\n","protected":false},"excerpt":{"rendered":"<p>This is a comparison of a traditional software package versus a SaaS solution over a 3-year period.  <a href=\"https:\/\/www.aerocominc.com\/info\/cost-comparison-on-premise-software-vs-saas\/\"><\/p>\n<div class=\"read-more\">Read more &#8250;<\/div>\n<p><!-- end of .read-more --><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[45],"tags":[],"_links":{"self":[{"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/posts\/5885"}],"collection":[{"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/comments?post=5885"}],"version-history":[{"count":0,"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/posts\/5885\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/media?parent=5885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/categories?post=5885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aerocominc.com\/info\/wp-json\/wp\/v2\/tags?post=5885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}