Page 77 - CSAM2 - Successful Sales Engagement for Cloud Services

Cloud Drives a Lower TCO

Total Cost of Ownership: On Premise vs. SaaS/Hosted

$45.00 $26.50 SaaS/Hosted UC
can save customers
Cost of Capital 42% of their TCO
over an On Premise
Ongoing and UC solution ($45 vs.
Operations $26)

Ops, HW & S/W plus…
maintenance,
 Eliminate the need for
connectivity, labor, capital – OpEx Model

Floor space, utilities  Outsource operations – Core vs. Context
 Provide stream of
Hardware
and Software enhancements – Evergreen
 Speed up Time-to-Value
One time setup  Eliminate complexity and technology risk

On Premise Solution SaaS/ Hosted Solution  Increase Business Agility
 Minimize Financial Risk
SOURCE: Forrester, Business Insights, IDC, McKinsey