Lower Total Cost of Ownership

How can SaaS lower your Total Cost of Ownership (TCO)?

We have 80 United Way members subscribing to a single, centrally-hosted software service enabling us to serve all of our members in a consolidated environment. For example, messaging services (email, pda support, virus protection, spam filtering) installed in a load-balanced farm of five servers may be able to support 100 medium-sized customers, meaning that each customer would only be responsible for 1% of the cost of the service. This represents a substantial potential savings over the traditional model, and for SaaS applications that are built to scale well, the operating cost for each customer will continue to drop as more customers are added.

By eliminating much of the upkeep, and using the economics of scale to combine and centralize customers' hardware and services requirements, we can offer solutions at a much lower cost than traditional vendors, not only in monetary terms, but also by greatly reducing the need for members to add complexity to their IT infrastructure.