SaaS Total Cost of Ownership Model

Abstract:

Concept of cloudcomputing become during the last several years a frequent subject of numerous academic as well as practical publications. As the knowledge of providers and potential users of cloud computing is deepened,thecloud adoption isgraduallyincreased as well. For enterprises the adoption of enterprise business applications, delivered as SaaS over public cloud, brings typically number of benefits. Especially in the current climate of economic downturn, the cost issues related towards adoption of these applications are the center of user attention. Individual SaaS cost benefits, often presented as adoption drivers or expected adoption benefits - for example low operating costs, are frequently used as the most important SaaS selection criteria. TOC is proposed as an umbrella tool, covering all partial cost issues related towards adoption of enterprise application SaaS solution. Original general model of TCO SaaS is presented and also is practically used for TOC evaluation in real-life CRM SaaS adoption in the Czech enterprise.