The iLab system is offered under the “Software-as-a-Service” (SaaS) model. Unlike traditional software, customers do not need to set up, maintain, or support the system locally. Instead, iLab creates accounts for customers on a server that is hosted and maintained by Agilent.
Research by the consulting firm McKinsey & Company has shown that the Software as a Service (SaaS) model delivers significant savings in total cost of ownership versus “home-grown” or traditional packaged software. Although the subscription price of SaaS can be higher than the license fee for traditional packaged software, this subscription fee represents 91% of the total cost of ownership, versus just 21% represented by a software license. (“Delivering software as a service,” McKinsey Quarterly, June 2007, Dubey and Wagle). McKinsey shows that, when considering total cost of ownership, the SaaS model is provided at a lower cost than the traditional software models both up front and ongoing. The following is a list from this report of how the SaaS model saves time and money:
Cumulative Total Cost Comparison for SaaS and On-Premise Mid-market CPM Solutions with 100 Users. Source: “The TCO Advantages of SaaS-Based Budgeting, Forecasting & Reporting,” Hurwitz & Associates, 2010, Aggarwall and McCabe.
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