Deploying software as a service has the potential for reducing the IT support costs as there is no need to install and support separate software on each client. Rather, all software is hosted on a server and when e.g. upgrades are required, only the server (or servers) need be upgraded. There are no support problems with different computers in an organization running different software versions. General help support is provided by the service provider rather than the local IT staff.
The additional costs that can arise from this model are:
1. Network costs, as obviously there is a considerable increase in network traffic. Service providers (such as Amazon) may charge for data uploads and downloads. This is only applicable of the service is provided by a 3rd party rather than in-house.
2. Server costs, as the servers are responsible for all computation and so must either be more powerful or more numerous. This is most significant if the service is provided in-house.
3. There may in fact be additional support costs from this model in the short term if it requires users to change the software that they normally use. This is likely to lead to additional demands for help.