Cloud , SaaS could be more expensive – there u go i got your attention

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Another day and one more analyst says SaaS could be more expensive.

Want to save money using SaaS? Be wary of contract terms

Companies can end up spending more on SaaS than they would for an in-house application

http://www.infoworld.com/d/cloud-computing/want-save-money-using-saas-be-wary-contract-terms-880

Every other day there is some analyst firm that warns enterprise customers to be careful and this new technology(cloud services) could be expensive. Hasn’t this been the case for any investment and nothing unique to Cloud services. Enterprise customers will have to size and buy cloud services the same way they assess when thy buy fixed infrastructure, software licensing or technology services.

Traditional software budgets have been complex and prone to risk of high cost. With elements of cost like software license, database license, hardware, implementation services, training, annual maintenance and other internal costs and software licenses have been complex to say the least with enterprise software companies pricing their services on concurrent users, named users, active and casual users, modules, employees, revenue, transactions, processors, site licenses .

Are some analysts overstating what is obvious to enterprise customers just to make themselves relevant. A discussion around True- Cost of Cloud ( T-CoC) as useful work accomplished per dollar invested, is a more useful approach.