Plenty of studies, going back to the 1980’s prove that the cost of acquisition is the smallest part of the overall TCO.Honestly, it is primarily accepted that the cost of maintenance, upgrades, optimization, management, and training incur approximately 3-5 times the cost of the initial equipment acquisition over a five-year ownership period.

Therefore, it is crucial that the small business owner look beyond the purchase and on-boarding expenditures, to ascertain the long-term picture as to how much the technology ultimatelycosts your organization.

Likewise, you must assess the TCO for a cloud/SaaS solution like SMB Suite’s Cloud subscription with the same analysis as an ‘on-premise’ technology solution. The calculation should look something like this:

1. Cost per user, per month
2. Consulting / Implementation Fees
3. Training Costs
4. Ongoing User Support Costs
5. Upgrade Costs
6. Maintenance Costs
7. Extra Application Integration Costs (3rd Party Applications and Information)
8. Application/Environment Backup/Restoration/Recovery Costs
9. Ease and Cost of Adding New Functionality or Modules
10. Ease and Cost of Adding New Users to the Solution/System
11. Uptime Commitments and Cost of Business Downtime

SMB Suite views TCO as a preferred method to compare technology investments when two solutions provide roughly equivalent functionality over the solution lifecycle, but have different types of costs associated with acquisition, maintenance, and operation. For these reasons, a TCO comparison offers a more tangible assessment of the total costs involved in deploying cloud-based SaaS and on-premise business solutions.

Visit our website pricing page: www.smbsuite.com/pricing for more data on SMB Suite’s Cloud subscription TCO with Microsoft Dynamics GP, CRM and eCommerce

by SMBSuite, South Texas Microsoft Partner

Why Does Ascertaining Your Cloud ERP Total Cost Of Ownership (TCO) Matter To Your Small Business is a post from: ERP Software Blog

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To really understand Cloud TCO, we break down the value prop so a company like yours can look beyond the obvious to the drivers that will be the most beneficial to the health of your organization. 

Moving CAPEX Expense to OPERATING Expense

Not only is this a smart move in terms of cash flow, as an organization, you now have the power to alter your financial model in a positive way that:

• requires little or no up-front software or hardware investment
• eliminates the need to support, maintain, or train additional IT staff
• locks-in the right pricing structure, in a pay-as-you-go  model

And because Cloud providers carefully articulate what services are provided in their Service agreements, your organization will benefit as it motivates them to keep you happy and deliver exceptional customer service and support all day, every day – a WIN for everyone.

The Ability to Deploy Quickly

It’s been highly publicized that by moving to the cloud an organization can experience faster deployments.  When you understand how this is possible, you start to appreciate the TCO value of the cloud and the advantages delivered with cloud technologies.

First, cloud providers eliminate the need for your organization to purchase the appropriate third-party software needed to integrate, maintain, and service a cloud infrastructure. Second, cloud providers specialize in delivering multi-tenant architecture designed optimally to spread costs and best practices across their client base, allowing you to realize the benefit of improved efficiency at a cost savings.  Third, cloud service providers perform all the required maintenance tasks on a large scale, making it easier and more efficient than an internal IT department.

Reallocate IT Budget to Improve Bottom Line Results

With cloud technologies, your IT budgets will allocate differently then a budget designed for on-premise applications. Simply put, you no longer have to worry about ongoing maintenance, upgrades, hardware or trained staff, or how to budget for each of these different areas. Instead, you’ll have  ONE predictable journal entry on the balance sheet every month that doesn’t change.    

Embracing cloud means that you have the opportunity improve your bottom line by spending less on software, hardware, and professional or consulting services which in turn will allow you to realign your budget to more strategic areas of the company – those that will drive profit and bottom line results.

Managing for Growth

Known for flexible scalability, Cloud technologies allow an organization to do more than scale up or back when needed.  They allow you to better utilize smart technology, integrate the cloud footprint across your organization and modify strategies for cost control in order to proactively plan for growth.

Cloud technologies are the first step to having the power to alter your financial model in a positive way. A model that requires no up-front investment, locks in the right pricing structure, and puts you in the driver’s seat to control your own prosperity.

Before you move from on-premise to the cloud, consider all the facts and how you want TCO to align with your overall business strategy. Moving to the cloud can change the way you run your business by allowing you to plan and improve your technology infrastructure, refine processes, and invest in the right resources in order to GROW.

For more information on moving from on-premise to the cloud, visit www.smbsuite.com

by SMB Suite, South Texas Microsoft Dynamics GP Partner

The Advantages of Moving from On-premise to Cloud is a post from: ERP Software Blog

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What level of security can I expect?

One of the first areas to discuss with your cloud software provider is the level of security that they offer to their clients. Data encryption, data storage locations, user access, and incident maximums should be addressed upfront and carefully articulated in the service agreement. Equally important is how your provider understands and maps your company’s key business security drivers to the overall business strategy of your organization, and how many layers of security exist within the cloud application and the server.  In short, you need to know how your cloud software provider protects your data from viruses, hackers, and theft before you sign on the dotted line of any service agreement.

What are the cost differentiators between cloud and hosted solutions?

Hosted solutions come in two flavors – private and public hosting. Either way, the company owns the software and has greater flexibility with regard to technology maintenance and where it will be serviced – at the company or in a public or private data center/cloud.

Cloud solutions, on the other hand, can be all-inclusive, eliminating the need for your company to manage technology – the software, data, support, or maintenance. While hosting may be a fit for some, Cloud software solutions are smarter in terms of cost efficiency, as they deliver lower investment expense and eliminate up-front equipment, maintenance, and upgrade costs.  Furthermore, cloud solutions convert a traditional capital expense into an operational expense – a SMART play for small and midsize companies that need to manage their cash flow for maximum flexibility.  To be thorough, review all  options with regard to total cost of ownership and technology maintenance.

Will the provider’s back-up and disaster recovery processes meet the challenge?

What if your company experiences a data access issue or power outage that also affects your client’s access to their data?  How confident would you be with your service provider’s contingency plans?

When evaluating a cloud software provider, take a deep dive into their contingency plans, backup schedule and recovery plans. Ask the provider about what you can expect with regard to associated costs should a crisis situation arise. Inquire not only about the frequency for data backup and the time required to recover data during a critical situation, but also how long it would take to recover deleted files. The more you know, the more you can eliminate risk and avoid potential billing issues.

What percentage of downtime can be expected for scheduled maintenance and upgrades?

This is a must-ask question for every organization considering cloud software and hosting, along with data availability/access.  Depending on the level of action required, an effective cloud provider will schedule a customized service plan in advance, working around your calendar and providing a guarantee on data availability. A good benchmark should be no less than 95 percent availability during a calendar month. All details should be carefully explained, along with the contract definitions associated with maintenance, such as availability, outage, castrophic disaster, and credits, in the service agreement.

How does the provider communicate maintenance notices, outage issues, or fixes?

As with any other software, cloud applications require periodic routine maintenance, upgrades and fixes.  Any cloud provider should carefully explain the “customer service” options available, customer service hours (if not 24/7) and the communication vehicles/frequency for notifications. Know upfront how your cloud provider will locate you should the system be down, and what forms of communication will be used:  email, phone, web, mobile, or all. With so many options available through social media today, some providers may use Twitter or Facebook posts to inform clients of pending maintenance. Agree to use the methods that best align to suit your needs.

As more small and midsize companies are driven to keep costs in check, cloud computing and cloud software are becoming increasingly popular. Understand what cloud providers can offer in the way of security, emergencies, data recovery, and downtime before making any decision.  For more information regarding online accounting software, visit www.smbsuite.com.

by SMB Suite, South Texas Microsoft Dynamics GP Partner

5 Questions to Ask your Cloud Solution Provider is a post from: ERP Software Blog

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1. Commitment: The top management of the business must embrace, support and be actively involved in the discovery, selection, and implementation of the solution. While the tasks can be delegated, the decisions and oversight must remain at the top.
   
   Before you make a commitment to ERP, consider a cloud solution like SMB Suite™. Forward thinking companies are choosing cloud technologies more and more because of the convenience of a predictable and fixed monthly fee without the capital expense.                     

2. Scope: Because of the vast array of choice and capability, every business must have a detailed set of requirements for any evaluation and selection of technology. Don’t be swayed by the vendor, tie everything back to a business process or need.
   
   When defining ERP scope, make sure to evaluate a solution that will integrate Sales; Accounting and eCommerce technologies to better streamline operations. Consider a web-based application like SMB Suite that allows greater visibility into business performance across the entire enterprise.                     

3. Internal Process Misunderstanding: Informal business processes don’t, generally, have precise definition. They’re defined in an ad-hoc manner and change constantly. Internal business processes must be well defined and understood (in sufficient clarity) to allow for capture and implementation into an enterprise or business application environment. The time to define processes is not in the middle of the implementation.
   
   Defining business processes can be manageable when you have the right tools in hand. SMB Suite was designed to incorporate best practices that allow greater understanding of how to improve efficiency across multiple departments, which in turn will help you more accurately define business processes.
    
    
4. Project Management: The implementation of technology should not be relegated to those that ‘have time’ or are ‘technical’ in nature. Instead, identify a key individual that is outstanding at managing multiple resources, across multiple business areas, within a particular timeline and budget. The strength of the project management is a good predictor of the outcome and the enterprise or business application success.
   
   Aligning project management and ERP implementation success is easy with the right solution, strategy and Partner in place. We recommend the internal customer project manager work closely with external project manager (from the software provider) to better manage resources, timeline and budget. When you select a solution like SMB Suite, project management is included in the price.
    
5. Training: The benefit the business will receive from implemented technology is often in direct correlation to the type and level of training received by users. Skimp on training and you increase the cost of the technology to the business. Provide adequate training and support, and the business reaps the greatest rewards for the effort and dollars put in the business application solution.  
   
   With SMB Suite, you receive immediate results as you leverage the technology without having the IT spend for back office systems, support and training. As an SMB Suite customer, you have the option to participate in on-going training and support desk that’s conveniently included in the monthly price.
   

 

Want to increase the success of your Enterprise software implementation? Or, better yet, eliminate the challenges stated above? Check out SMB Suite™. It’s your answer to Sales, Accounting, Collaboration and eCommerce tools designed to streamline operations, gain greater visibility into business performance and deliver value from day one! Visit GetSMB.com or call 1-800-525-6398.

Click here to view video

by NextCorp, Ltd. a South Texas Microsoft Dynamics GP Partner

Five Reasons Why ERP Software Implementations Fail is a post from: ERP Software Blog

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• “SaaS adoption has moved past the ‘tipping point’”
• “A new ecosystem is forming around Cloud computing that will transform the IT sector.”
• “SaaS is not an optional disruptive technology.”
• “Cloud, SaaS and Mobility are helping to make the “boundary-free enterprise”

In a nutshell, subscription-based software and services are getting stronger and stronger, offering more and more benefits to businesses.  For example, nine out of ten companies plan to grow their use of “Software as a Service,” according to the Gartner Group.  Should you be on this list?  Consider the following:

Business Drivers

Businesses of all sizes are moving to SaaS because of lower upfront costs, shorter implementation times, less implementation risk, reduced need for hard-to-find in-house technical resources and more flexibility to right size systems (up or down).  SaaS has a proven track record of reducing ongoing IT operations costs, freeing up capital and resource to focus on driving the business forward to new advantage and competitiveness.

Businesses are adopting SaaS as ‘insurance’ against business disruption and security threats.  They’re doing this by taking advantage of the most advanced, comprehensive, and easy to use data backup/restore, virus/spam protection, device recovery services – all automatically and without having to purchase a single piece of software.

Businesses are using SaaS tools to run their businesses better.  Whereas in the past, small and medium businesses would lag behind the technology advantages that larger businesses could afford. SaaS levels the playing field for customer management, manufacturing and distribution, HR/payroll, accounting, banking, collaboration, and productivity.  Small and medium businesses, through SaaS, have access to the latest, most powerful, and cost effective technology without any capital investment or the need for ‘in-house’ technical expertise.

The adage that ‘old is new again’ is true.  Return on investment, risk mitigation, total cost of ownership, and a focus on the business remain central to technology discussions.  SaaS has proved it’s worth using these traditional criteria.

Where is the fit?

An additional, recent survey pointed to collaboration products of all sorts as the top application area for SaaS based solutions, with human resources and customer service next on the list. Finance and accounting moved up from 10^th place to 5^th place in 2010 – one indicator that SaaS is on the move from the edges to the core of the business as the technology continues to mature.

For mid-sized companies, a mix of in-house and SaaS based solutions has been demonstrated by True Religion jeans. True Religion Jeans found that vendor experience and the ability to “try before you buy” testing of potential SaaS solutions improved operation and avoided common adoption mistakes.  True Religion also realized the benefit of being able to spend more time focusing on the business needs instead of on technology.

For small companies, the savings are even more pronounced.  In a recent presentation, Tom Kelly CFO/CIO at Kardia Healthcare discussed his experience with SaaS applications when he was with 2^nd Wind.  As an exercise equipment company, 2^nd Wind was able to replace virtually all the in-house systems with SaaS solutions and reduced costs by 61%.

The bottom line:

More and more businesses are exploring, understanding, and implementing Software as a Service to drive their bottom line. Isn’t time to explore if SaaS is right for your business?

SaaS is no longer a theory, but is a viable reality that has demonstrated business and financial benefits.  Small and medium business, today, benefit the most through the elimination of capital spend, reduction in technical resource requirement, increased business continuity and safety, and lowered overall IT cost.

By NextCorp, Ltd., Microsoft Dynamics GP Partner serving South Texas

Thinking About Software As A Solution (SaaS)? is a post from: ERP Software Blog

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This event is for both existing customers and companies who are interested in knowing more about Microsoft Dynamics GP 2010 and it’s capabilities.
Sign up today to learn more about MS Dynamics GP 2010

 Click Here to Register

Tuesday, May 11, 2010
8:30 am – 11:30 am CT
CPE CREDITS AVAILABLE

Microsoft Corporation
7000 SR-161 (George Bush Turnpike)
Irving, TX 75039

Microsoft Dynamics GP delivers a comprehensive ERP solution that goes beyond basic business management and reporting to meet your unique needs. Unlike many ERP systems, Microsoft Dynamics GP is easy to implement and use, enables all your people to work with information in ways that are familiar to them, and lays the groundwork for innovation now and into the future. Whether you’re a CFO, CIO or an Operations or Human Resources Manager, Microsoft Dynamics GP streamlines your business processes and helps you work both fast and smart.

Be one of the first to experience the new way to do business with Microsoft Dynamics GP.

 Whitepapers
Top 10 Reasons for Choosing MS Dynamics GP 2010
Top 10 Reasons to Upgrade to MS Dynamics GP 2010

 By NextCorp, Ltd., Microsoft Dynamics GP Partner for Texas

Experience The New Way To Do Business With Microsoft Dynamics GP 2010 is a post from: ERP Software Blog

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1. Leave technology to the experts:  Businesspeople trying to become technology experts often ignore their business. Stick to what you know – your products/services and business.  Leave the rest to technology experts.

2. Don’t hesitate to take a risk first:  Taking a ‘wait and see’ approach seems prudent, but it will frequently put you behind your competition.  Often innovation and new solutions usher in higher levels of performance and result in cost savings.  Don’t wait for your competitors to test the waters, allowing them to reap the benefits while your costs escalate and business performance slows down. Take the dive yourself.

3. Focus on the profit, not the contract:  SMBs work hard at finding, closing and keeping customers.  In this rush, many choose to run from one contract to another, never really measuring the costs associated with a product/service, a market, or a customer.  In this rush, SMBs tend to overlook the need to measure their desired profit growth.  SMBs need to assess where they should spend their time by how much profit is created.  This can be accomplished through automated financial and reporting systems which put owners in control of their information, allowing for the informed decisions to be made.

4. Supply your employees with the best productivity tools:  In the quest to manage costs, SMBs will often hold back on utilizing new and innovative productivity tools, the result of which is decreased productivity, a higher volume of errors, and customer dissatisfaction.

5. Be accessible to your customers, vendors and suppliers at all times:  Many SMBs forget that their customers are a large part of their business success and future growth.  A lack of collaboration can lead to a communication breakdown and your relationships with your customers will ultimately suffer as a result. Being out of touch with your vendors/suppliers can keep you from negotiating better prices or terms.  Integrating your ‘value chain’, from suppliers to customers, will open up communication and can result in unprecedented growth.

6. Stay ahead of your competition:  It is hard to become a leader in your market or in your customers’ eyes if you always take your cues from the competition.  SMBs should strive to become leaders in their own right. This is achieved through a clear understanding of the market including their products/services, the competition, and customers.  Information available through industrial-strength financial and collaborative solutions will help you to understand these areas of your business and keep you ahead of the competition.

7. Invest your time in seeking new opportunities:  Leading SMBs invest their time in constantly creating new opportunities in order to grow their business and stay ahead of the competition. Many SMBs make the mistake of investing their time into protecting their markets and existing customers while the competition speeds past them.  Rule of thumb: it’s better to play offense instead of defense.

8. Cheap and inexpensive is not always the right way to invest:  We all want to conserve costs, but often SMBs will expect the best, while only being willing to pay the least.  Adopting new technologies or solutions that are inexpensive can keep your business from growing at full speed.  Avoid considering opportunities based upon price alone;  instead make wise investments that will return new opportunity, revenue, productivity and profit.

9. You can’t do it all:  At some point we all learn this lesson. SMB owners will often try to handle every problem area of their business on their own instead of surrounding themselves with the best talent and tools to help. It is important to capitalize on the strengths of these experts and put them to work.

10. Don’t forget about hidden costs:  Technology industry analysts and seasoned business executives have difficulty putting a hard figure on the Total Cost of Ownership (TCO) of today’s traditional SMB application solutions. In computing the cost of software, businesses tend only to focus on the purchase price, yet even when fully operational, software requires additional expenses. Don’t forget to budget for costs associated with support, maintenance, and upgrades.

NextCorp, Ltd. a South Texas Microsoft Dynamics GP Partner

10 Steps to Avoiding Small Business Insanity is a post from: ERP Software Blog

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