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SaaS Economics: The Safe Bet is No Longer the Smart Bet

White Paper Published By: ServiceNow
Published:  Dec 17, 2010
Type:  White Paper
Length:  7 pages

Hear traditional IT service management companies tell it, and you’d think buying their software or application service is a budget-smart choice. You’d be wrong.

Legacy ITSM solutions carry a hefty price tag from the get-go. Tally up spending on customizations, piece-part licensing and upgrades, and the cost of ownership can reach obscene proportions – an extra quarter of a million dollars here, a half a million there. ITSM often becomes the bitter pill no enterprise IT executives will do without despite the difficulties they have swallowing its associated costs.

But as an increasing number of IT executives are finding, ITSM costs don’t have to be gag-inducing. When delivered on demand in a software-as-a-service (SaaS) model, ITSM gets a whole lot more palatable from a total-cost-of-ownership (TCO) perspective. No need to invest big bucks up front, or choke down hidden charges, exorbitant maintenance fees that emerge over time or pricey consulting fees that crop up every time you want to do more than a little tweak. Rather, you pay only for what you need, when you need it, based on subscription pricing for flat-cost predictability.

Tags : 
service-now.com, saas economics, it service management, software enterprise, application service, legacy itsm solution, total-cost-of-ownership, tco, software-as-a-service, application integration, total cost of ownership, web services, service management