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Thursday, February 19, 2009

Gartner: Don’t assume SaaS is cheaper

The analyst firm said that there has been a “great deal of hype” around SaaS and that businesses had misconceptions about its cost.  SaaS is cheaper during its first two years of use, Gartner said, but the total cost of ownership over five years would be lower for on-premises software.  In its report “Fact-Checking: The Five Most-Common SaaS Assumptions,” Gartner also warned that SaaS was not necessarily faster to implement.

But data could be initially loaded to the SaaS application, then updated regularly or updated in real time using Web services.

In addition, Gartner said, businesses need to remember that SaaS applications can be customized and are no longer only for basic functions.

Posted on 02/19