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Abstract

This paper introduces readers to the concept of software as a service (SaaS) and helps them evaluate a business case for where to use SaaS in the enterprise. While the underlying concept behind SaaS — renting your business application as a service — is not new, changes in technology and the software landscape now make this model a viable and smart alternative to licensed software. By looking at the history of enterprise computing, the author illustrates why this new wave in computing models represents a natural evolution in technology. More importantly, by examining the hidden costs behind licensed software or the total cost of ownership, the author helps the reader better evaluate the trade-offs between licensed and hosted software.