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SaaS vs. Server-Based Systems
The Software-as-a-Service model can reduce TCO for access control systemsThe Latest from SIW
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Total Cost of Ownership is a well-studied discipline within IT at large, but its results have seldom been brought to bear on the world of electronic access control. Now that the Internet-based Software-as-a-Service (SaaS) model for access control management platforms is in many cases replacing the traditional server-based approach, integrators and end-users alike should evaluate which is the most cost-effective solution.
Until recently, it has been common for buyers to think of system cost in terms of one-time, up-front server and software expenses; however, it has become a well established fact that the largest part of PC or server ownership cost actually lies in ongoing operational expenses, maintenance and support agreements. This is particularly true of computer systems providing infrastructure services such as access control, because they must be held to a higher standard of availability and performance than ordinary office equipment.
Recent research by Brivo Systems reveals that for most classes of applications, the SaaS model for security management platforms is the clear operational and financial winner, due primarily to the economies of scale introduced by hosted application services.
The study concluded that the SaaS solution has a nearly $26,000 (or 76 percent) advantage over a server-based solution. This article will examine the cost factors and methodology that led to this conclusion.
Cost Factors and Methodology
To perform a cost comparison between traditional server-based and SaaS security management platforms, the following categories of operational expense were examined:
• Initial installation costs , such as hardware and software license purchases, as well as labor expenses for provisioning control panels, servers or other software systems.
• Recurring fees , including SaaS subscription fees, server software licensing and hardware and software maintenance agreements.
