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SharePoint Costs Higher Than Companies Expect But Not Microsoft’s Fault

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A recent survey conducted by Osterman Research, and sponsored by Azaleos Corp, has found that SharePoint costs are higher than most companies expect, but not because of fees paid to Microsoft. Instead, the costs tend to be associated with inadequate staff, memory storage demands, and poor implementation.

Despite this, the survey found that over 2/3 of businesses have seen improvements in information management since implementing SharePoint.

A likely cause of these unexpected costs is a refusal to embrace the cloud. Eighty-seven percent of the respondents had either used a private network or an on-premises solution. This highlights a common problem. Many businesses fall prey to concerns about data ownership and security, falsely believing that their data is safer on premises, where a single natural disaster or technical mistake could destroy all the data.

These concerns are combined with a desire to own their memory storage, rather than rent it. While this is certainly an understandable desire, it ignores a basic principle of economics, that specialization makes trade more advantageous than trying to be everything to everybody. Companies that embrace the cloud tend to spend far less after maintenance is accounted for.

In addition to memory storage, one of the main issues unveiled by the study was costs associated with finding IT staff qualified to support in-house SharePoint projects.

That said, network costs weren’t the only issue. Three quarters of the businesses surveyed either had no governance plan at all, or they were not following their own governance plan. This highlights another major issue: businesses that expect new technologies to solve problems for them, rather than present them with new techniques and tools to solve problems.

Unfortunately, the motion most likely to reduce long term costs, a migration to the cloud, can also be costly when various apps and customizations need to be adapted to the new platform. These costs are somewhat higher than the costs of adapting to a new on-premises solution, although overall costs will typically be higher in the long term for businesses trying to keep up with growing memory requirements. This drives home the importance of using out-of-box solutions whenever possible, as needless customization only boosts costs whenever any kind of migration is made.

 By SharePoint Blog Editors, Find a Local Microsoft SharePoint Expert


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One question

  1. There are still many security concerns when it comes to cloud storage. However, the data is more vulnerable when left on premises as anything can happen.


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