tco calculator onsite vs cloud aug2014 (1)

Total Cost of Ownership Calculator: On-premise versus CloudPrepared by Harvest Solutions

Overview

Need to make a business case for a CRM (Customer Relationship Management) investment?

Use this calculator to determine the TCO (Total Cost of Ownership) for an on-premise versus cloud implementation over a three-yearperiod. On the "TCO Calculator" worksheet tab, just enter your projected costs where we've plugged in sample benchmark data, and results are instantly calculated for you. Use this tool to test different sets of assumptions to see how your investment might vary based on your company's particular circumstances.

If you have any comments or questions regarding this tool, or to learn how Harvest Solutions can help your company determine the best course of action, please let us know by contacting us at:

Corporate Office:Harvest Solutions303 Wyman Street, Suite 300Waltham, MA 02451phone: 781.530.3736

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http://www.harvestsolutions.net/

Total Cost of Ownership Calculator: On-premise versus CloudPrepared by Harvest Solutions

Assumptions: # of Users: 20

Consulting Rate Per Hour: $225 Cost Per On-premise Cloud Software Software Software On-premise Total Cloud Cloud Cloud Cloud TotalLicense Hrs Hrs Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

Software/Subscription Costs

Software MS Dynamics CRM Server Licenses $5,000 $5,000 $0 $0 $5,000 MS Dynamics CRM Prosfessional CAL Licenses $1,000 $20,000 $0 $0 $20,000 Microsoft SQL Server Licenses $200 $4,000 $0 $0 $4,000 Email Distribtion Software $0 $0 $0 $0 Web to Lead Software (if necessary) $0 $0 $0 $0Other Enhancement Software $0 $0 $0 $0Support & Maintenance Fees (Renewable) 16% $4,640 $4,640 $4,640 $13,920 Mobility Software

Cloud Subscription Fees $1,500 $30,000 $30,000 $30,000 $90,000

Software/Subscription Total $33,640 $4,640 $4,640 $42,920 $30,000 $30,000 $30,000 $90,000

Professional Services/Consulting & Allocation of Internal Resources

Business Process Review 16 16 $3,600 $0 $0 $3,600 $3,600 $0 $0 $3,600Server Setup 8 0 $1,800 $0 $0 $1,800 $0 $0 $0 $0Workstations $3,375 $0 $0 $3,375 $0 $0 $0 $0Customization 40 32 $9,000 $0 $0 $9,000 $7,200 $0 $0 $7,200Pilot Program and Rollout 16 16 $3,600 $0 $0 $3,600 $3,600 $0 $0 $3,600Data Conversion (Migration) 24 24 $5,400 $0 $0 $5,400 $5,400 $0 $0 $5,400Integration 60 60 $13,500 $0 $0 $13,500 $13,500 $0 $0 $13,500Development of Workflow 16 16 $3,600 $0 $0 $3,600 $3,600 $0 $0 $3,600Reporting 20 20 $4,500 $0 $0 $4,500 $4,500 $0 $0 $4,500Training - End User 16 16 $3,600 $0 $0 $3,600 $3,600 $0 $0 $3,600Training - System Administration 16 16 $3,600 $0 $0 $3,600 $3,600 $0 $0 $3,600Project Management $11,115 $0 $0 $11,115 $9,720 $0 $0 $9,720

Professional Services/Consulting Total $66,690 $0 $0 $66,690 $58,320 $0 $0 $58,320

Allocation of Infrastructure Cost

Hardware (Servers) $5,000 $0 $0 $5,000 $0 $0 $0 $0Software(Operating Systems) $500 $0 $0 $500 $0 $0 $0 $0NOC Rent Allocation $2,500 $2,500 $2,500 $7,500 $0 $0 $0 $0Backup $750 $750 $750 $2,250 $0 $0 $0 $0Security Software $250 $250 $250 $750 $0 $0 $0 $0Disaster Recovery $250 $250 $250 $750 $0 $0 $0 $0UPS $100 $100 $100 $300 $0 $0 $0 $0Personnel - IT Administration $10,000 $10,000 $10,000 $30,000 $2,500 $2,500 $2,500 $7,500Personnel - CRM Administration $5,000 $5,000 $5,000 $15,000 $0 $0 $0 $0

Allocation of Infrastructure Total Total $62,050 Total $7,500

Upgrade Costs

Hardware $0 $0 $0 $0 $0 $0 $0 $0Software $0 $0 $0 $0 $0 $0 $0 $0Professional Consulting Services & Training $0 $0 $13,894 $13,894 $0 $0 $0 $0Project Management $0 $0 $2,779 $2,779 $0 $0 $0 $0

Upgrade Total Total $16,673 Total $0

Support Costs $175 10 $1,750 $1,750 $1,750 $5,250 $0 $0 $0 $0

Support Total $1,750 $1,750 $1,750 $5,250 $0 $0 $0 $0

Grand Total Grand Total $193,583 Grand Total $155,820

Software

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Grand Total$0

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3-Year TCO Comparison: On-premise vs. Cloud

On-premise To-tal

Cloud Total 3-Ye

ar C

ost

A10

This TCO is based on Microsoft Dynamics CRM. It is one of the leaders in on-premise software. Here, you can substitute the pricing of any other CRM solution you are evaluating.

A11

The server version is approximately $5000.

A12

The cost is approximately $1000 per license.

A13

You may need Microsoft SQL Server Client Access Licenses.

A14

For comparison purposes, I would suggest reviewing Exact Target. It works for both Microsoft Dynamics CRM and Salesforce.com.

A15

Web to Lead functionality if not available out of the box for Microsoft Dynamics CRM.

A16

Depending on your required functionality, you may need additional add-on software.

A17

Maintenance fees for Microsoft Dynamics CRM is 16% of the MSRP.

A18

Basic mobility included with Salesforce CRM. 3rd party add-ons are available at an additional cost for Microsoft Dynamics CRM.

A20

You need to determine which version of Salesforce.com addresses your requirements. The cost varies from $780- $1500 per user per year. Microsoft Dynamics CRM Online is $780 per user per year.

A27

The amount of time spent on a BPR depends on the size of your organization and required functionality by department - sales, marketing, customer service.

A28

Installation and configuration of software on server.

A29

Installation and configuration of software on workstations.

A30

Based on our past experience, it takes 20% less time to configure Salesforce.com compared to Microsoft Dynamics CRM.

A33

The most common integration is between your CRM and ERP system.

A34

For purposes of this TCO, 20 hours of time to develop workflows is assumed. Based on our past experience, it takes approximately 20% less time to develop reports in Salesforce.com

A35

For purposes of this TCO, we are assuming 20 hours of time to develop reports. Based on our past experience, it takes approximately 20% less time to develop reports in Salesforce.com

A36

We recommend 8 hours of end user training per person, class size limited to 10 people.

A38

Historically, Project Management has been 20% of all the other services combined.

A44

This assumes a mid-range server. You should determine your cost or an allocation cost of your existing servers.

A45

You need to include the cost of your operating system and database software.

A46

For this calculation, we are using 1000 square ft at $25 per square ft with a 10% allocation to the CRM system.

A47

This is an estimate. You need to allocate the cost of your backup solution including hardware and software.

A48

You need to allocate cost for firewall and any other related costs.

A49

You need to allocate cost of your disaster recovery expenses.

A50

You need to allocate cost of your UPS solution.

A51

For purposes of this calculation, we are assuming a fully loaded FTE of $100,000 per year, with a 10% allocation for the onsite CRM system and 2.5% allocation for the SaaS solution.

A52

We have assumed a $100,000 FTE with a 5% allocation for onsite. We are esimating 2.5% for SaaS administration. You can also purchase optional administrative and support services from Salesforce.com at $30 per month per user.

A58

Although we have not included any upgrade cost for hardware, you may have to include an allocation for your organization.

A59

We have not included any upgrade costs for software. You may have to include an allocation for your specific situation.

A60

Based on past experience, we are assuming the upgrade will be 25% of the original implementation and training costs.

A65

This is 24/7 support. Microsoft CRM is $175 per incident. Salesforce offers an optional Tech and Administrative support at a cost of $30 per month per user.

A67

You need to include the cost for on-going support.

tco calculator onsite vs cloud aug2014 (1)

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