As a business IT leader you are tasked with many important decisions around your company’s collaboration technology and SharePoint digital transformation. To make the right decisions for the strategic direction of your SharePoint estate and accompanying budget there are several things to keep in mind to obtain the complete picture.
The total economic impact of deploying and operating a SharePoint environment will consist of hard costs, soft costs, and you also must consider the risk. The soft costs and potential risk can at times exceed the relatively straight forward anticipated hard costs of standing up and running a SharePoint environment.
Hard costs examples
- SharePoint and SQL Server Licensing
- Deployment and operational man hours
For a scenario of 500 SharePoint users and if you require high availability, you would need to follow Microsoft’s example of the smallest HA MinRole SharePoint farm:
- 2 x Front end web servers with Distributed Cache @$10,000\server
- 2 x Application Servers that also run Search @10,000\server
- 2 x SQL servers running SQL Always On Cluster @ $10,000\server
- 16 x SQL Server Enterprise licensing @ $7,000\core
- 4 x SharePoint Server Enterprise server licenses @ $7,000\server
- 500 x SharePoint User CALs @ $90\user
If this infrastructure takes 1 month to setup and deploy you can estimate it would take various IT resources 640 hours @ $65\hour, or $41,600.
These costs alone would add up to about $286,000 up front, not including management, monitoring, backup, security systems. The hardware specs could increase significantly based on your usage of SharePoint. If you require multi-datacenter resiliency, you could at least double this.
* Note these are merely estimates. Your hardware and software costs could vary greatly depending on a number of factors and economies of scale.
Soft cost examples
- Vendor support
- Third party SharePoint tools (Migration, Governance, Antivirus, BLOB Externalization, and more)
- Operational support systems like monitoring, backup, patching, security, CDN
- Employee Turnover
- Inability to hire qualified SharePoint resources
- Lost productivity
- Low morale
- Lost sales/missed opportunities
These soft cost examples will impact the ROI of your SharePoint investment and can ultimately lead to adoption failure of the technology. If you do not properly architect, deploy, and maintain SharePoint, you may never fully realize and enjoy all benefits and features the platform offers.
Examples of risk when choosing your SharePoint architecture design, business requirements and hosting parter
- Risk of service outage
- Risk of losing data
- Risk of confidential data breach
- Risk of contractual breach with your clients data hosted on your SharePoint environment
If your SharePoint environment is business critical where parts of your company cannot operate without it; any down time, data loss, or security breaches can be much more expensive than the hard costs simply deploying and running the platform (think Edward Snowden’s release of thousands of classified NSA documents).
If the platform will be used in collaboration with customers or partners you probably have contractual obligations of security and availability of the platform. Failure to adhere to these presents risk of lawsuits and lost revenue.
This article is not to scare you, but to bring to light all the pieces you must think about when planning a SharePoint deployment and choosing your managed SharePoint hosting partner.
Fpweb has been in the business for nearly two decades having built and supported over 1,000 SharePoint environments. We can help mitigate the risk and jump start the ROI of your SharePoint investment. Lean on our Microsoft Certified Gold Partner team of experts, providing all-USA-based managed SharePoint services, on-premises or in any cloud, with a live, six-minute ticket response, 24/7/365.
Contact us to discuss your unique needs.