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The promise of Software as a Service in 2010

Tuesday, November 17, 2009

Towards year-end, the identification of trends for the coming year becomes common among consultants, analysts, etc.  Real trend identification is not always possible as technological advancements and market changes affect product development, buying habits, and the like.  Some types of technologies or the use of software, however, provides organizations with business benefits as well as the features and functionalities required to ensure their continued success.

The use of Software as a Service (SaaS) or other hosted solutions seem to be increasing and gaining more popularity within business intelligence and performance management.  SaaS provides organizations with the benefits of not having to implement or maintain solutions in-house.  And with subscription fees, organizations may feel that they are getting a better deal than on-premise alternatives. However, when evaluating longer-term costs, SaaS-based solutions may not be as different from its onsite competitors.  The cost differentiations that do matter are extra hardware, additional software, development, and maintenance. None of which are required within SaaS environments.

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