Messages

PagesMy Pages
Easy Solutions for a JMeter Load Test “Out of Memory” Failure

Easy Solutions for a JMeter Load Test “Out of Memory” Failure

Recording HTTPS Traffic with JMeter's Proxy Server

Recording HTTPS Traffic with JMeter's Proxy Server

How to Write Test Cases: Sample Template with Examples

How to Write Test Cases: Sample Template with Examples

Agile Model & Methodology: Guide for Developers and Testers

Agile Model & Methodology: Guide for Developers and Testers

What is Waterfall Model in SDLC? Advantages & Disadvantages

What is Waterfall Model in SDLC? Advantages & Disadvantages

Performance Testing Tutorial: What is, Types, Metrics & Example

Performance Testing Tutorial: What is, Types, Metrics & Example

What is System Testing? Types & Definition with Example

What is System Testing? Types & Definition with Example

Integration Testing

Integration Testing

Unit Testing Tutorial

Unit Testing Tutorial

The Pros And Cons Of Using Google Adsense For Extra Income

The Pros And Cons Of Using Google Adsense For Extra Income

Software Testing Methodologies

Software Testing Methodologies

Test page

Test page

Google Sitemaps – How important are they?

Google Sitemaps – How important are they?

Are you interested in increasing your Google PageRank?

Are you interested in increasing your Google PageRank?

Creating Faster Websites and Website Monitoring for a Global Business

Creating Faster Websites and Website Monitoring for a Global Business

Link Building – to uplift your website rankings

Link Building – to uplift your website rankings

Buying an website for selling

Buying an website for selling

Selecting the right online business

Selecting the right online business

Low marks for performance reviews

Low marks for performance reviews

Is it time to bring data to managing?

Is it time to bring data to managing?

The future of work: Will robots take my job?

The future of work: Will robots take my job?

تست مبتنی بر  خصوصیت‌ها با استفاده از QuickCheckJs

تست مبتنی بر خصوصیت‌ها با استفاده از QuickCheckJs

Property based testing with QuickCheckJs

Property based testing with QuickCheckJs

چطور حرف اول یک رشته را با حروف بزرگ یا کوچک در جاواسکریپت جایگزین کنیم

چطور حرف اول یک رشته را با حروف بزرگ یا کوچک در جاواسکریپت جایگزین کنیم

How to replace the First Letter of a String with upper/lower case in JavaScript

How to replace the First Letter of a String with upper/lower case in JavaScript

Pricing | ViraWeb123

Pricing | ViraWeb123

Benefits of SaaS in Hotel Management Software

Benefits of SaaS in Hotel Management Software

چرا به یک نقشه کسب و کار نیاز داریم؟

چرا به یک نقشه کسب و کار نیاز داریم؟

Why we need a business plan?

Why we need a business plan?

The 11 Most Popular Hotel Management Software Solutions for Small Hotels Compared

The 11 Most Popular Hotel Management Software Solutions for Small Hotels Compared

الگوی مقاله‌های بلاگ

الگوی مقاله‌های بلاگ

seo-video

seo-video

seo-keyword

seo-keyword

widget-load-test

widget-load-test

تمام ویجت‌هایی که برای بلاگ استفاده شده، بر اساس تم سایت ۱۲۳

تمام ویجت‌هایی که برای بلاگ استفاده شده، بر اساس تم سایت ۱۲۳

seo-text

seo-text

seo-image

seo-image

تماس با ما

تماس با ما

template6

template6

ویراوب|آموزش ساخت صفحه جدید

ویراوب|آموزش ساخت صفحه جدید

دامنه

دامنه

template3

template3

template2

template2

template5

template5

template4

template4

template7

template7

template1

template1

website-template

website-template

seo-education

seo-education

editor-widget-slider

editor-widget-slider

seo-page

seo-page

شروع کار با گوگل انالاتیک

شروع کار با گوگل انالاتیک

editor-wedget-text

editor-wedget-text

صفحه اصلی سایت

صفحه اصلی سایت

editor-widget-link

editor-widget-link

editor-widget-image

editor-widget-image

widget-button

widget-button

widget-group

widget-group

seo-widget-image

seo-widget-image

حریم خصوصی

حریم خصوصی

Home Login Logout

Does SaaS Save Money?

SaaS rescues money for new businesses and marketers appreciate the features and benefits of SaaS(Software as a Service) such as scalability, accessibility, and availability. But how much money does it save for a company? Teams which formed cloud-based infrastructures designate that, while they are so pleased with their decision to go to the cloud, there can be notable costs associated with SaaS. In this post, I`ll show you how much money does a customer saved in our SaaS.

Marketers and decision-makers appreciate the features and benefits of SaaS(Software as a Service) such as scalability, accessibility, and availability. But there is one of the most important benefits, as I see it, that they do not consider very.

They do not notice that SaaS rescues money

Co-founders who have formed cloud-based infrastructures designate that, while they are so pleased with their decision to go to the cloud, there can be notable costs associated with SaaS. Costs often include per-user fees, platform costs, and partner per-user fees. In addition, providing contents, UX design and taking photos fees can be as high-priced as for on-premises systems.

Cloud providers often argue that the real benefits of SaaS are not in direct cost savings but in the flexibility, agility, and scalability benefits that are derived from moving systems to the cloud. Nevertheless, for organizations to make intelligent decisions regarding cloud-based systems, it is important to understand the relative costs of SaaS vs. on-premises systems.

Cloud providers usually argue that the real advantages of SaaS are not in direct cost savings but in the flexibility, scalability, and accessibility benefits that are obtained from moving systems to the cloud.

However, for businesses to make smart decisions regarding cloud-based systems, it is necessary to understand the relative costs of SaaS vs. on-premises systems.

In this post, I`ll show you how many vision existed about the cost of SaaS and how costing strategies designed by cloud providers effect it. In my case study, I gather information form developer boards and CRM database to show how much money is saved by a real customer?

Does SaaS save money?

Why customers come to the opinion that SaaS does not save money? There are at least four possibilities.

  • Case 1: SaaS does save money, but clients do not understand it. In other words, customers do not recognize the cost of staffing and supporting on-premises systems, such as developing futures, upgrades, and fixing bugs. These costs are excluded or hugely reduced with SaaS. But customers do not fully know those costs, they do not calculate savings. Or they might be not important systems update that their team is paying for.
     
  • Case 2: SaaS does save money, but you only achieve those savings when you remove your existing systems. If you have a system, moving just one of them to the cloud does not cut off your data center or data center staffing. So, you are not able to recognize the cost savings from eliminating the data center.
     
  • Case 3: SaaS saves money, but vendors do not pass those savings to customers. In other words, SaaS applications are cheaper for vendors to design, develop, deploy, and maintain, but providers are just matching the prices of vendors and hold extra gains.
     
  • Case 4: SaaS does not save money, but the value of SaaS in terms of flexibility, accessibility, and scalability is so overwhelming that it is worth it to customers to pay extra.

These four cases are not mutually exclusive. For example, SaaS may save money (Case 1) and also allow vendors to appropriate some of the cost savings as profit (Case 3). However, answers may differ for different SaaS applications. For example, perhaps cloud CRM saves money, but cloud ERP does not.

My case study

The question is still open. From the customer’s point of view, does SaaS save money?

To answer the question, I use our company data to measure of applications cost and profit to customers. In other words, I asking our customers to take part in our regular annual analysis, compare the spending ratios of these select customers against our developing ratios.

Through this study, I hope to be able to answer three main questions. First, do bussiness that have gone fully to cloud spend less than those have not? Second, how does the spending differ? Finally, where do they see the value of SaaS?

This may not be an acurate analysis becuse this is our first anual analysis with a few customers. However, I hope to be able to refomre my analysis next yer with more valueable data.

The real cost of develop

Our development team is managed based on Agile principles. So in every sprint, developers take cards and move them to toward the DONE column. Finally, our QC team checks each card by E2E test and move them to the version column. At the end of a spring, the version column is archived by the board owner.

I get the list of last 12 sprints (each of them is about 30 days) and choose cards related to the customers' needs directly. Finally, I sum up spent points on each column to find out the development cost ratio.

The mean points spent on each sprint (month) of development is about 75. This cost is excluded from maintenance, deploy, and research (as you know, maintenance of a system is very hard and needs much more resources than develop).

How much a customer pay

Our marketing strategy is: Customer should pay as much as resources used (This is the combination of Case 1 and Case 3).

However, there is the minimum bound of resources for our customers (3GB of HDD and 20GB of traffic) to pay which cost about 8 US$.

The following figure shows the average cost of our five most active customers. Note that, they usually consume resources less than our limits.

Develop cost vs. customer pay

Suppose that our team is consist of peoples within lowest-paid 25 percent of paid developers based. Then we pay 35 US$ for an hour to develop. The following figure shows the developing cost and the percent of it paid by a customer in a year:

Yes, our customers paid n time lower than the actual developing cost (a customer pays just 0.3% of development cost in a year). We were working hard this year and this may cause develop cost is much more than customer pay.

Conclusion

Business owners come to the opinion that SaaS may not save money. In my study, they can save 99 times of what they pay. However, it may be very different from a bad strategy of a cloud provider.

Built with love to give everyone an opportunity to say something to the world
Copyright © 2018 All rights reserved - SITE123 

Terms - Privacy - Abuse

LocalTheme

Help