For years, TCO models for SaaS (and for most other Cloud-based offerings) have focused on comparisons to traditional, on-premise or outsourced offerings. True TCO modeling is not about comparison, it is about understanding what something is likely to cost – which enables realistic planning and budgeting. At this point, there is no question that markets are shifting en masse toward Cloud-centric IT delivery, in many cases regardless of the comparative cost versus traditional offerings. This Strategic Perspective offers a rethinking of SaaS TCO in that light, presenting Saugatuck’s current, refined SaaS TCO model.
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