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Friday, September 12, 2008

TTCO - True TCO Analysis for SaaS comparison

SaaS hosted email archiving delivered from a cloud compute platform is the right combination for lowest cost and highest performing service. But when comparing SaaS versus software or appliance based solutions it's not as easy to compare true total cost of ownership. Installed solutions have indirect costs beyond the software license fees and hardware invoice. You can debate the budget aportions to alot to onpremise email archiving, but you can't deny that there is some tangible indirect cost that needs to be factored to get a true apples to apples comparison.

True ROI and TCO is comprised of factroring some or all of the items below, plus the software fees, maintenance fees, and hardware costs:

1. People cost
2. Bandwidth cost
3. Maintainence cost
4. Hardware cost
5. Electric cost
6. Downtime cost
7. Redundancy cost
8. Software license cost
9. Cost of floor space used
10. Response time

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