ASP Advantage : Why Outsource : Cost Analysis


	Financial Impact

Managing the costs of your enterprise applications can be very difficult. The up-front costs for license fees, annual software maintenance charges, hardware, implementation services, training, staff, and communication requirements can often result in unmanageable internal costs. With an outsourced solution, the cost on a per user, per month basis becomes a significant, predictable benefit to managing delivery of key business applications.

To compare the costs of any in-house system versus the typical costs of using an ASP, every internal cost should be considered, including:

Software license fees
Software maintenance fees
Hardware acquisition
System maintenance fees
Facility costs
Technical support
Application development costs
Database administration
Network management
Communication infrastructure
Disaster recovery

Only after the true internal costs are known, can anyone compare the savings experienced with an outsourced solution. We encourage you to contact WTS to allow our professionals to work with you on a detailed cost analysis. Our sophisticated cost analysis model will offer the insight and business reasons to justify a hosting decision.

Industry experts have reviewed our cost models and the many models used to estimate internal execution of strategic business solutions. Our cost analysis is detailed and thorough and presents an accurate representation of the possible savings realized. The following document from JD Edwards and IDC could also be useful in reviewing cost considerations.

The Financial Impact of ASPs (.pdf format)