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Understanding SaaS Pricing

by Naresh Sarwan on March 12, 2010

Tony Byrne of CMS Watch discusses SaaS pricing in this article and also makes the point that prices can be similar or more expensive than installed applications when compared over the life time of a system:

What’s the total cost of ownership of your installed CMS in years two and three? Surely more than just the vendor’s maintenance fee. Servers and applications need care and feeding. Software requires patching and updates. Internal staff resources cost money, even when they don’t fall under your department’s budget. Finally, with either approach, you will consistently want to tweak and enhance your application, and those development costs frequently dwarf your other outlays.

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