TCO

Five-Year SaaS TCO | How Price Hikes and a Weak Yen Move the Build-vs-Buy Break-Even

When a SaaS renewal quote makes you think building it yourself would be cheaper, the number to put in the approval request is a five-year total, not the annual fee next to a development estimate. Using the actual track record of vendor price increases and the weak yen, and the lifecycle-cost principle in Japan's Digital Agency guideline DS-310, this article works through a model case of a Japanese company (300 users, $60 a month, ¥160 to the dollar, all our own assumptions) with maintenance, security, and people included, and tables the variables that move the break-even point.