I am often asked how to put together the business case for Software as a Service (SaaS) and if the traditional Return on Investment (ROI) metrics is the correct way to look at SaaS offerings. The question is very relevant as organizations affected by the economy now must leverage the reduced human and capital resources at their disposal.

Interestingly, to answer the question of a SaaS solution's ROI we must first calculate the value of enterprise software and hardware investments, which is called the Total Cost of Ownership (TCO).