Initial costs for implementing software-as-a-service applications such as Salesforce and Workday can be lower than competing on-premises enterprise software, but they could be more expensive over the full term of a contract, according to Peter Goldmacher of Cowen & Co. The software analyst offers several insights into the on-premises-vs.-SaaS equation, Larry Dignan writes. "Eventually, every budget-strapped IT department will be in the market to update their enterprise software or be forced to free up dollars in order to invest in other value-added projects," he writes.

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