The key cost drivers for any software implementation are teh cost of the software application, the hardware required to run the application and the people services required to design, deploy, manage, maintain and support the application.
- Traditional software pricing is limited to the cost of the software application, in most cases an upfront fee in exchange for a perpetual user license. It is up to the customer to determine the cost of the hardware and the people services.
- SaaS applications are charged on a subscription basis. The subscription fee includes the cost of the software application, the hardware and the people services.