COTS VS SaaS

 

• The primary reason most enterprises are moving to a SaaS solution due to the fact that it is perceived on being financially more attractive.
• Comparison between the license costs of a COTS solution and the costs involved consuming a SaaS service.
• As typically COTS software is software that you need to install, configure and manage yourself. Whereas SaaS is something you consume and the SaaS provider is responsible for a lot of stuff.

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1) Licensing / Costs SaaS is a deployment strategy, not a licensing strategy. However, many SaaS solutions are sold on a subscription basis, enabling companies to avoid the significant upfront license fees. This can enable organizations to manage SaaS purchases as operational expenses instead of cap ex and get more bang for the buck. Organizations should also factor the savings from infrastructure, support resources, and software maintenance fees

2)Customizations While SaaS has come a long way in terms of allowing customers to configure new fields, change processing rules and even develop bolt-on applications using their platform, they do not come close to allowing the level of customizations in traditional packaged on premise software. SaaS solutions have to account for enabling seamless upgrades without customer involvement. This requires the vendors to place limits on the ability to modify data models, programming, etc within the application. If your business demands significant customizations SaaS is not right for you. In the next part in the series we will wrap up our SaaS review.

Pros :

1. Lower TCO

2. Large Capablity Set

3. Allow small customizations through the software's configuration

4. Financially more attractive.

5. Allows customer to try before they buy.

Cons :

1. More training Required 

2. Have to Adjust the business according to the software

3.