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IOS means Profit is up and costs are down
Home > Overview > Total Cost of Ownership- ISV vs. Saas
TOTAL COST OF OWNERSHIP ISV vs. SaaS
IOS means your profit is up and costs are down. Check out the table below to see how IOS SaaS On Demand solution can save you significant money. IOS mitigates the risk of investing in on-premise or homegrown Software while at the same time allows you to enjoy a low cost entry point for a high-value and profitable solution.
     
Total Cost of Ownership ISV vs. SaaS
Metric ISV IOS SaaS
Delivery Model
  • High Upfront Dollars
  • Immediate Cashflow Decrease
  • Generally Capitalized Item
  • Periodic Subscription Fees (Genearlly monthly or annually)
  • Small Upfront Dollars if Web Page/ECM Integration
  • Predictable Cashflow
  • Generally Expensed Item
Pricing
  • 40-60% License Fee
  • 20-30% Maintenance Fees and Costs
  • 10-40% Programming and Support
  • 90% Subscription Fees
  • 10% Programming and Support
Cost Basis For Revenues Lower with IOS SaaS
License and Subscription
  • Varies Per Program
  • IOS SaaS Starts at $49.95 per month/5 Users
  • Varies Per Subscription Level/Number of Users
Professional Services
  • Partnership with System Integrators
  • Large Projects (2:1 Service to Product)
  • 6-18 month Deployment Cycle
  • One Time In-house training Included
  • Small Customizations often included in recurring price model
  • Less than 2 month Total Deployment Cycle with Web page WCM/ECM adaptation
  • Often can be Turn-Key Solution
Customer Service Application/System Support Management and Accessibility
  • ISV and Self Directed Technical Help Desk
  • Training New Users/Hires
  • Customer Support
  • Upgrades generally every 12-24 months can require IT Support, QA Cycle, Interface and Testing Cycles
  • Maintenance
  • System Management
  • ECM if applicable
  • Manage Pipes/T1s
  • Continuous Load Balancing
  • VPN required for Mobile workforce
  • SOA implementation required eventually
  • Technical Help Desk Provided x3 per month per seat
  • Training New Users/Hires online/low cost
  • Managed Uptime
  • Managed Regular Upgrades
  • Managed Maintenance
  • Managed Performance
  • One time ECM Integration Fee from Merchant
  • System Management
  • Managed and Co-located Pipes/Bandwidth
  • Managed Load Balancing
  • Fully Integrated
  • Visibility and Accessibility without Private Networks
IOS=Lower Operating Expenses
Operating Expenses
  • Multiple code bases
  • On Premises Single Tenant Delivery
  • VPN required otherwise
  • Pay For all Upgrades
  • 2-3 year New Releases and/or Re-Deployment Cycles
  • Maintenance Fees (generally> 20% of original license fees per year
  • Single code base – Web native
  • Segregated Database per Company
  • On Demand, Multi-Tenant Shared Application
  • Free Upgrades Implemented Over the Internet
  • Frequent New Feature Delivery, several per year
  • User input on New Features Desired
  • Free Maintenance and Support
  • Customizable per Industry
  • Custom Software Modules for fraction of the cost of in house application development
  • Negate need to upgrade/patch individual PCs
Sales and Marketing
  • Single Sales Contact
  • Generally Required employment of or partnership with System Integrators from ISV
  • Mutiple Indirect Channels
  • No need to partner with System Integrators
IT Center
  • IT Remains a Cost Center
  • IT has opportunity to become a Profit Center
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"Internet Office is a talented, brilliant young company that has assisted me in transforming my law office into a far more productive and efficient operation. IO has replaced poor systems with systems that work . They have been able to show our people the appropriate way to do things with the greatest impact. Internet Office has been honest, hardworking and a good value."
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Internet Office, Inc. (IO) Internet Office Suite (IOS) provides intranet, extranet, web content management, eCommerce, POS, Storefront, products, services, inventory and order management for your company. IO offers the perfect solution whether you are a small or medium sized business, an online or brick and mortar company. Our solutions include marketing, email solutions, calendars, shared calendars, Contact Database CRM, automatic upgrades, customer service, Web site development, hosting and a majority of your company needs. IO requires an internet connection or mobile phone for access to your system. Test drive our system today or sign up now to start collaborating with your staff, clients and business partners. Call us at 239-430-2896 or email us info@internetoffice.biz today for more information. ©2003-2008 Internet Office, Inc. All rights reserved.