The SaaS Factor

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Together, Siemens and its customer enter relevant data into the total cost of ownership tool. Once this is accomplished and the analysis has been run, we look at the cost of the onsite system in terms of up-front system and ongoing service costs, as well as IT system and management expenses. Over a three-year period, those costs can add up. Siemens' analysis dissects the onsite system costs and compares them to the RSM solution to reveal where the cost savings occur. The upfront system expenses are reduced because there is less IT equipment required to install onsite. Services fees, however, will increase due to the costs of hosting and managing the system from the provider. On the other hand, management costs are eliminated because the remote security management team now conducts those activities. In the end, the customer has a financial argument that they helped create to justify their case to move to the cloud.

Phil Atteberry is director and segment head of Managed Security Services, Siemens Industry Inc., Buffalo Grove, Ill.