"In theory, software as a service (SaaS) should be a cost-effective option for IT executives who don't want to deal with the hassle and expense of installing and supporting software for users. By tying into a Web-based software service that users can access with a browser, IT departments can avoid the costs of adding servers, powering servers or even setting aside space for them in a data center. And since the software is supported by a managed service provider, IT managers don't need dedicated staffers to deal with help-desk-related issues.
So SaaS is cheaper than installing your own software, right? Don't count on it. "If you go into a SaaS agreement believing it's going to be less expensive under all circumstances, you should reorient your thinking," says Rob DeSisto, an analyst at Gartner Inc. There are all kinds of extraneous expenses that SaaS customers need to be aware of, according to DeSisto. Those include setup costs, training fees, storage limits and the costs of integrating with other applications."
Click the link above for the top 10 gotchas in SaaS agreements that corporate customers should watch out for.