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Business economics and the use of web tools

July 12th, 2009

NetSuite Pricing

This article outlines the economic case for deploying web technology in key functions such as back office accounting and front office operations. I highlight some of the economic and operational risks you should be aware of before trusting critical business information to “cloud computing”.

You can run your business systems on the web. There is software for accounting, business planning and research, customer interaction management, employee expense claim tracking, time capture and sales management available for less than the cost of traditional systems. There are possibly less that ten systems that provide all of these features. These systems can overall work out less expensive for example Salesorder dot com is very low cost but similar systems like Netsuite – will cost you a lot more. Look closely at the entire lifecycle cost of traditional and web based systems.

Many web applications can be instantly trialed for free lowering the buyers risk. Some suppliers are happy to charge you monthly whereas others often insist on a longer term and therefore these players for example Netsuite – will cost you a lot more. Do not make the mistake of putting a piece of technology that turns into a piece in a puzzle.

There may be unacceptable risks here so it important to consider these befor proceeding with a purchase of these types of systems.

You may already be aware of the financial risks found in traditional licensed software. I mean upgrades, installation and tailoring costs. In true software vendor fashion.

You may not easily spot the costs of exit. You may not see the costs of getting you data into the right format to move it to another system. The business web application industry is still in its infancy and even well established players like Netsuite – will cost you a lot more than you expect to extricate your critical business data from their systems. Check and then check again. We’ll be adding more on this soon

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