Software-as-
However, SaaS does not spare customers the need to ask vendors the same questions about service levels, costs and other issues that they would ask themselves if they were planning on-premise implementations. SaaS providers' answers to some of those questions may not be ideal because, for example, long-term costs are usually higher for SaaS than for on-premise computing.
Customers' needs can change for any number of reasons - such as growth, acquisitions or changes in the competitive landscape - so the right SaaS-versus-
Of the nine questions customers should ask about SaaS, seven also apply to on-premise deployment. However, the issues of changing needs prompt two more questions unique to SaaS. These involve the option of shifting from SaaS to on-premise implementation of the same application and vice versa, and the range of choices among hosting providers.
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Report Table of Contents:
Executive summary
The Ovum view
Question one: what are my requirements?
ERP is a special case
Question two: what's the service history?
The proof is in the details
Question three: how strong is the SLA?
Fallback procedures must be considered
Question four: how much can we customise the application?
Consider long-term needs
Question five: when does break-even come for SaaS versus on-premise?
Estimating on-premise costs can be complex
Question six: how will my costs increase if I scale up?
Pricing schemes vary
Question seven: how safe will my data be?
SAS 70 isn't the whole answer
Question eight: how easily can I switch between on-premise and SaaS?
Shifting needs call for flexibility
The code question
Question nine: am I able to choose my own hosting services provider?
Choice isn't universal
List of Tables
Table 1: SaaS, application hosting and on-premise computing - a comparison
About Ovum
Ovum fully understands convergence across telecoms, IT services and software. They invest heavily in researching what is happening in a market that is dynamic and full of risk and reward, analysing the changes and identify the threats and opportunities ahead for their clients. Ovum's team has extensive experience in the sector and is dedicated to 'getting closer' - to the industries they advise on, to the people they work for, and ultimately to the real issues determining how ICT markets behave. Ovum maintains a fluid, highly collaborative structure that brings the right range of expertise to each situation. View more research from Ovum at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
