SaaS and Cloud Computing cost reminder

December 1, 2009
By manchester

An article in Manufacturing & Technology eJournal reminds us that SaaS and cloud computing can lower your costs. The chart, reproduced below, portrays several cost criteria and concludes that you need to consider SaaS vendors in your decision making process.

ERP Cloud Considerations

What the chart doesn’t show is the relative size of the “X’s”. For example, when implementation and customization costs consume the majority of the budget (as is often the case with mid-sized ERP customers), SaaS initial costs are still less – but not by much. Also, as your business grows, the size of the Annual Subscription in the traditional column is an “x” while the size of the Annual Subscription in the SaaS column is “X“. Many times the cost of SaaS can be higher in the long term.

With ERP, Flexibility Matters

ERP software customers should seek flexibility – software at your service. Do not lock into a single purchasing or deployment model. Make sure that your solution can be readily customized and tailored to your particular needs. Verify that your software and data can be easily re-deployed in a different environment.

Following this advice will make sure that you save money in both the short term and the long term.

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One Response to “ SaaS and Cloud Computing cost reminder ”

  1. Vala Shahabi on December 3, 2009 at 3:57 am

    Just an X is a poor representation of cost. A % would be better fitting.

    Another advice to add is make sure your data can be exported to a common output that can be easily imported by another ERP software.

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