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Article

Title: Calculating the Cost of SaaS

Author: Schwartz, Ephraim Article Type: Product Analysis
Source: InfoWorld, v29 n13 p6(1) Publication Date: Mar 26, 2007
  ISSN: 0199-6649
URL of Publication: http://www.infoworld.com

Two of the top software-as-a-service providers (SaaS) are Salesforce.com and NetSuite. Both of these firms offer customer relationship management solutions. At Salesforce, pricing begins at $65 per user per month for its Professional Edition and $125 per user per month for its Enterprise Edition. For 100 users using the Enterprise Edition, the annual subscription cost would be $150,000. The Premier support package costs an additional $22,500 per year. NetSuite has higher core pricing, which totals $99 per user per month, and advanced modules on NetSuite can cost as much as $499 per month for an unlimited number of users. The Silver support package at NetSuite costs 22.5 percent more, based on the annual subscription fee. This means that at $99 per user per month, the support fee per year would total $26,730. Fees are lower at NetSuite than at Salesforce if a business requires more storage, with the first 10 GB of storage at NetSuite provided for free. For additional storage over the 10 GB, NetSuite charges $1,500 per gigabyte per year. Salesforce would cost $54,000 for 10 GB of storage per year. In consideration of these costs, experts recommend that businesses running information technology (IT) as a core competency consider using an on-site solution rather than SaaS.

Companies:
NetSuite Inc Salesforce.com Inc

Products:
NetSuite salesforce.com

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