5 Pros and Cons of SAAS Pricing
Cash Friendly SAAS costs are considered as operating expenses, whereas a software license is considered an asset, with years of planned depreciation. If cash is tight SAAS is really the way to go. Typically it’s much harder to get a large capex approved than it is to take on an annual opex commitment. Support and Upgrades are Included SAAS pay as you go pricing typically includes support and upgrades. Some traditional software providers include upgrades but support is typically about 20% of the initial software cost Over Time, SAAS Can Look More Expensive But… When you look over an extended period, SAAS can appear more expensive. This can be a dangerous calculation though because it’s hard to compare apples to apples. You can include hardware costs in a total cost of ownership calculation but its harder to correctly reflect implementation costs because SAAS solutions are typically deployed at much lower cost. I am aware of traditional ERP implementation costs i