Comparison of Traditional Perpetual Licensing and SaaS Licensing ICT Models: A Case Study
Keywords:
business information, license agreement, perpetual licensing, SaaS, IT organization, procurement, cost-comparison, roles, skillsAbstract
This article is based on a case study conducted in a large chemical company, focusing on their five nonintegrated business-critical IT-systems. These systems are transitioning from perpetual licensing and inhouse hosting models to a SaaS model. The case study examines both the financial impact and the impact on the IT-organization. Financial impacts were studied over a five-years period, comparing both perpetual in-house hosting and SaaS services, including the implementation of both delivery types. Additionally, the study investigates the impact on the IT organization, considering the new roles and skill sets needed for procurement and continuous IT services.
