From CIO magazine’s “Advice & Opinion” section:“While premises-based systems require large upfront capital investments and periodic upgrades, (not to mention time-consuming development and change request cycles) hosted systems’ software-as-a-service (SaaS) model involves a low up-front investment, and pay-for-performance pricing. According to McKinsey & Company, economics favor a hosted model over CPE-based IVR, even when ongoing costs are calculated. The firm estimates the traditional “do-it-yourself” model has a productivity of 60-70 cents to the dollar, while the SaaS-enabled model has a productivity of 20-30 cents on the dollar – a 50 to 70 percent improvement. The Yankee Group concurs, reporting that savings can range from 28-45% for organizations that choose a hosted call center solution.”