Apps Strategy Options Abound And Organizations Need Accurate Comparison Methodologies
Recent inquiries from blog readers and client engagements highlight a growing need to compare the cost of apps strategies. Common comparison scenarios often include:
- SaaS versus on-premise
- Upgrade versus customization
- Single instance versus two-tier
- Vendor maintenance versus third party options
- Custom apps versus packaged apps
Cost Comparisons Should Encompass The Software Ownership Lifecycle
An inventory of costs should comprise the phases of application ownership (see Figure 1). License fees, implementation, and maintenance often define the most common costs. However, additional factors by phase should include:
- Phase 1 – Selection. Costs include services such as requirements gathering, vendor selection services, contract negotiation fees, and program management.
- Phase 2 – Implementation. Costs include projects such as change management, business process reengineering, integration, customization, and testing.
- Phase 3 – Adoption. Costs include, training, testing, configuration, report creation, and customizations.
- Phase 4 – Optimization. Costs include upgrade, testing, custom development, and other integration fees.
- Phase 5 – Renewal. Costs include third party maintenance, management, and vendor selection.