Let's do the Math

Let us assume, you are a startup or a small to medium enterprise (SME) with a couple of dozens to a few hundred employees that want use business collaboration and productivity applications.

You will most likely go with a subscription business model where the applications are hosted by the vendors as software-as-a-service (SAAS). An average payment between $5 - $15 will hence be paid per user every month for each application such as Email, ERP, CRM, web/video meeting, etc.

For a small company consisting of  50 people, the annual costs would be:               

• # Email @ $5 per user per month = $3,000

• # CRM @ $12 per user per month = $7,200

• # ERP @ $10 per user per month = $6,000

• # Video @ 5 per user per month = $3,000

Total annual costs for just these 4 applications would be $19,200!

For a medium company with 250 users, the cost would jump to $96,000!