The economics of SaaS

Cloud U expert Jeff Kaplan breaks down  the economics of Software as a Service (SaaS) and how they are changing IT thinking.

"In the past, the economics of legacy software were not very attractive," said Kaplan, managing director of Wellesley, Mass.-based consulting firm THINKstrategies.

Now, he sees a marketplace with economic pressures that have forced IT to think beyond legacy applications. Some managers leery of making the "big bet" on legacy have turned to SaaS.

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