Comparing the Total Cost of Ownership (TCO) of On-premise vs. SaaS – Derek Singleton @ Software Advice

This is a guest post, authored by Derek Singleton at Software Advice.

As Cloud technologies continue to evolve, more and more software buyers are seriously evaluating software as a service (SaaS) solutions against on-premise offerings. While there are many factors that influence which deployment model is best for any particular business (e.g., ability to manage IT internally and speed of deployment) the cost of the system is often a key factor. But comparing the true cost of a Cloud-based system against an on-premise system can be time-consuming and is often a complex undertaking.

For instance, most buyers understand that on-premise licenses are typically purchased with a large, upfront investment and SaaS licenses are purchased for a relatively cheaper subscription price. But many forget to consider the total cost of ownership (TCO) of their investment. That is, they don’t look beyond the licensing costs to consider how other factors such as the need to customise the software and integrate it with existing applications can influence the TCO of their software purchase.

Even then there are intricacies like maintenance and support and training requirements that can make creating an apples-to-apples comparison of the TCO on-premise and Cloud software difficult. If you’re not a seasoned veteran in modelling all these costs, comparing them can become overwhelming.

To help buyers ballpark the true costs of each software model, I recently created an interactive TCO calculator at Software Advice–where we help buyers with software pricing–that buyers can use to compare SaaS against on-premise software over a 10-year ownership period.


The calculator models annual and cumulative costs over this time period and shows buyers at which year of ownership the TCO of a SaaS system will equal that of an on-premise solution, based on user inputs. Although the data comes pre-populated with an example case, users can override every value to see the impact that changing any particular value will have on the TCO as a graph at the top of the calculator automatically refreshes after each update.

While the calculator is useful for getting you in a ballpark, it’s important to note that any business will still have to perform their due diligence to come up with an accurate figure that reflects their unique needs and situation. And there are several influencing factors (e.g. organic business growth) that no general calculator can accurately model. In any case, it’s worth checking it out to get an idea of which system seems right for your business. Check it out here.


Moving Dynamics ERP to the Cloud? Avoid the Lightning

Quite an informative and the most relevant post about Cloud ERP environment.

Andrew Snook, Fastpath Inc., explains us why and how to take necessary precaution before deciding on moving our Dynamics ERP on to the cloud.

It’s very important and informative. Must read for all those who have got a serious thought about cloud ERP.

NOTE: For those who are new to this portal; you may have to register yourself on to this site to read the complete post. It’s a member-only site, but the membership is free of cost.


The Future of Microsoft Dynamics GP Technologies – Mariano

Mariano highlights 5 coolest technologies for Microsoft Dynamics GP in coming years to watch out for. I can’t agree for more, since I am already seeing 3 of the highlighted 5 currently.

Just to list you those technologies:

1. Microsoft Lync
2. Microsoft Silverlight
3. Microsoft Visual Studio Lightswitch
4. Cloud Computing
5. Microsoft Dexterity (yeah you did hear it right)

And to know why the above are cool, check out his post: The Future of Microsoft Dynamics GP: 5 Cool Technologies You Should Watch For (and Learn) in the Coming Years


Office 365 & SharePoint Online – TechEd 2011 Session

Just attended the session, Office 365 & SharePoint Online, in TechEd 2011 Middle East. And it’s very exciting and interesting.

It’s a service offered by Microsoft for anyone who wants a Hassle-Free and Pay-As-You-Use experience. Happened to see a live demo of Office 365 and it’s terrific to say the least.

MSFT may not be the first one to work on this, but they have certainly got an edge since it’s built on their flagship Product, Microsoft Office, which is used by millions of people out there.

Very impressive. More information here: Microsoft Office 365 – Get In The Cloud.