ITPEC FE Morning April 2018 Question 62
ITPEC FE Morning April 2018 — Question 62 of 80
TCO for SaaS — what costs remain when you move to cloud software
When adopting SaaS, the provider handles servers, installation, upgrades, and development. The customer pays a subscription fee and accesses the software via browser.
However, data migration cost is still the customer's responsibility — transferring existing data from legacy systems into the new SaaS platform is part of TCO.
Why not others:
- a) Cost of upgraded installation — the SaaS provider handles all updates and upgrades automatically
- c) New software development cost — the software already exists; you subscribe to it, not build it
- d) Server hardware investment — infrastructure is owned and managed by the provider
Key rule: SaaS eliminates hardware and software costs, but data migration remains the customer's expense and is part of TCO.
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