We continue to demonstrate the additional ROI that can be realized by choosing SaaS-based IT service management (ITSM) over an on-premise system. In prior posts, we discussed lower licensing fees, reduced infrastructure requirements, and faster, more economical implementations.
Today, we’ll cover how greater ITSM ROI can be achieved through reduced need for external consulting resources.
Legacy ITSM = Complex, Costly Upgrades
Most on-premise ITSM tools are quite difficult to maintain and upgrade. In fact, in many cases, moving to a newer version of the software can be just as complicated and labor-intensive as the initial deployment itself, because sophisticated reconfigurations are usually required. As a result, companies often need to hire expensive outside consultants to assist. In a typical year, these experts can charge fees that are as high as 20 percent of the total license costs.
So, a company that makes an initial investment of $86,000 in an on-premise IT service desk will likely spend an additional $17,200 in ongoing administration each year, beginning in year two. That number is sure to drive total cost of ownership way, way up, and make ITSM ROI much harder to reach.
Upgrading SaaS ITSM is Hassle and Cost-Free!
What makes SaaS ITSM ROI higher in this area? With a SaaS IT service desk, all ongoing maintenance and upgrades are performed by skilled and knowledgeable staff at the vendor’s own state-of-the-art data centers. All administration and enhancements are non-disruptive, and included in the price of the service. So, there are never any added fees – or effort required – for upgrades, new features and functionality, or support.
That means, in years two and three alone, a company who selected a SaaS IT service desk over an on-premise one will save an astonishing $34,400!
In our next – and final – SaaS ITSM ROI post, we’ll highlight the savings that SaaS delivers through decreased internal staffing requirements.
About Laura Miller
Laura Miller is the Senior Director of Sales Operations, ITSM at SolarWinds. She works one-on-one with customers ranging from SMB to Fortune 500, providing them with a modern way to look at service management. Laura's ITIL experience and ITIL v3 Foundations certification provides her with a unique understanding of the service management industry. Her guilty pleasures are anything chocolate, ice coffee, and reality TV.
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