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19 July 2013

Time to Reconsider, and Remodel, SaaS TCO

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Summary

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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Additional Info

  • Document Number: 1242
  • Document Type: Strategic Perspective
  • Research Category: IT Management, IT Spending / Priorities / Economics
  • Author: Bruce Guptill
Read 307 times Last modified on 11 October 2013
Bruce Guptill

Senior Vice President and Head of Research
Falmouth, MA

Saugatuck SVP and Head of Research Bruce Guptill’s research and expertise focus on the changing business of IT includes software and services, collaborative IT, web commerce, telecom, and electronic marketplaces. His work for enterprise IT and business clients includes total cost of IT ownership, and business planning for new types of IT. And his insight and guidance on IT vendor channel management, market identification and development, and buyer behavior analysis has enabled hundreds of established and startup IT providers to find, enter, and profit from new and traditional markets, while helping to guide user enterprise leaders toward optimal IT procurement and vendor management.

In addition to multiple decades of IT industry and market strategy development, Guptill holds an MBA in marketing and finance, and a BA in the psychology and business of mass media communication. Married with three children, Guptill resides on Cape Cod in southeastern Massachusetts, and is a lifelong fan of the Red Sox, Patriots, Celtics, and the University of Connecticut Huskies.