The Truth Behind The TCO

The Truth Behind The TCO


Why EAaaS is More Advantageous than Premises-Based Applications?

If you’re reading this, it’s likely that you’re a business process or IT applications professional. Or you’re an innocent bystander interested in Enterprise Applications. Either way, you must be wondering how EAaaS (Enterprise Applications as a Service) can provide a better TCO than traditional infrastructure or private cloud alternatives. To skip this blog post and read the full paper, download it here!

No matter how the application is deployed, the needs of enterprise customers remain the same. So of course, both cloud and premises-based solutions address the customers’ requests. However, a vast difference arises between EAaaS and premises-based application infrastructures. Premises-based enterprise applications include tightly integrated solutions, long-term commitments, client-owned assets, and few global suppliers. These detrimental aspects create a higher TCO (total costs of ownership) for you. Sure, these expensive premises-based solutions may have been the only option in the past, but now jumping into the cloud to create test environments and backup instances, such as Oracle or SAP based enterprise applications.

Before you plug in the numbers for find your TCO, it’s critical to understand what to measure when assessing an EAaaS offering. EAaaS lowers TCO in five key areas: hardware, software, automated provisioning, productivity, and administration. In one study, each area ranged from 5-40% savings when companies switched to Enterprise Applications as a Service. There is no doubt that the TCO of EAaaS is lower. Maybe you’re one of those people that needs to touch, see, and hey, smell, before you buy.Go ahead; get the assessment. What you find may surprise you!

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