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Hidden Costs of Small & Medium Business Software

11 May

Hidden Costs of Small & Medium Business Software

by SMB Suite
in Managed IT, SMB Blog
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Are there hidden costs in business software?

Before you reach for a calculator, it’s a trick question. Even technology industry analyst and seasoned business executives have difficulty putting a hard figure on the Total Cost of Ownership (TCO) of today’s traditional SMB application solutions.

In computing the cost of software, businesses tend to focus on the purchase price. Yet even when fully operational, software is never free. It must be supported, maintained and upgraded.

Software’s “Hidden” Costs

Beyond the purchase price, the “hidden” costs are: implementation, training, support, maintenance and all subsequent upgrades. Also included should be the cost of ‘downtime’ while the business tries to figure out how to fix the software should it fail. Together, the hidden costs of software can easily exceed the original purchase price by a factor of 100-200%!

How do SMB software cost break down? The U.S. Department of Commerce study shows that software purchase expenditures account for only approximately 30 percent of the total. The biggest hidden costs is represented by labor expenditures ranging from 37 percent for support and 33 percent related to software getting the software up and running. The numbers translate to a ratio of 1:2, software license to management/labor costs; and 1:1 license fee to implementation.

 

Getting Rid of Hidden SMB Software Costs

Today’s technology allows small and medium business more choices than ever before. Today, unlike just a few short years ago, SMB organizations can eliminate all hidden cost in one decision. How? By outsourcing all software via services. It is as easy as that. Instead of having all the software ‘owned/licensed’ by the business, SMB can subscribe to enterprise-class financial software, a whole range of productivity and collaborative applications, even their IT management. All for one, low monthly price. No surprises, no hassles, no unforeseen financial impacts.

Outsourcing SMB software services brings you these benefits:

  • Expertise– the provider knows software and services better than anyone else. You focus on your business, not the technology.
  • Economy of Scale– software can be maintained, supported and upgraded through standardized processes and automation. The solutions easily scale up as you need them to, never holding back your business.
  • Reliability and Performance– in the highly competitive software industry, software providers have vested interest in continually upgrading and improving product performance and services. You are assured of the greatest and best performing solution to propel your business forward.

In the end, the real savings are achieved when your business runs better, faster and less expensively, giving you a competitive edge in your market.

SMB Software Without Hidden Costs

SMBs around the world now have access to industrial-strength financial, customer management, productivity, and collaboration solutions – on a subscription basis. Businesses just yours are realizing the benefits of predictable, manageable costs, freed up capital for other purposes, and the value that enterprise-class solutions bring. There is no need to compromise because you’re an SMB! These solutions, offered via monthly subscription, bring you the best of both worlds: business power and performance, and easy to manage costs. All only a phone call away!

Learn how you can immediately benefit from the easiest, fastest, and most fully featured small and medium business financial solution available – the NextCorp SMB Suite. Built upon Microsoft technologies you are assured of the power of this solution to deliver the greatest integration, best support, and highest productivity possible. The SMB Suite offers industry leading implementation and migration services to get you to benefit fast, and low monthly subscription pricing so you don’t have any large capital outlays.

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Steve’s been with SMB Suite since 1998 and has been involved with nearly every aspects of the Company’s business as a strategist, professional services executive, cloud solutions architect, and senior consultant. In his current role, Steve is responsible for SMB Suite’s revenue and oversees the execution of ERP, CRM and BI projects for customers across a broad range of industries. Steve combines his expertise in MS Dynamics GP, CRM and other Microsoft products with a strong foundation in accounting and business to identify gaps and streamline customers’ processes. Prior to co-founding SMB Suite, Steve was previously Corporate Controller for MEHLE Behr and, prior to that, Audit Senior for Ernst & Young. Steve holds a Bachelor of Business Administration degree from the University of Texas at Arlington.

Jeremy is responsible for SMB Suite’s technology vision, strategy and implementation and is the architect of the Company’s Dynamics Cloud Platform. Highly adept in every facet of managed services, ERP systems and e-commerce platforms, Jeremy’s expertise spans the implementation and support of business and financial software solutions, as well as the customization and integration of SMB Suite’s cloud ERP technology stack. He holds numerous Microsoft and industry-related certifications, and was primarily responsible for designing the Company’s progressive business services platform in the early days of the Cloud. Prior to SMB Suite, Jeremy served as the financial analyst, systems administrator, and information systems liaison for a $2 billion financial services corporation.

Monty is responsible for SMB Suite’s day-to-day operation and, most importantly, its customers. As a leader, motivator and mentor, Monty creates loyal high performance teams willing to “walk through walls” to accomplish their goals. Prior to SMB Suite, Monty served as President of The Bradshaw Group (TBG), a global distributor, manufacturer, and repair facility for digital printers. In this role, he was the Company’s ambassador to its most important domestic, European and Latin American customers and TBG achieved a best-in-class Net Promoter Score of 74 for its superb customer satisfaction. Prior to TBG, Monty served as the General Manager of Sam’s Clubs three highest grossing U.S. stores and was named Regional Operator of the Year in 1999. Monty holds a BBA in Marketing from Texas Tech University and is an active member of Business Navigators. He has been active in Vistage International, Executives in Action, the Dallas/Fort Worth Retail Executives Association, as well as, A.P.I.C.S., the leading professional association for supply chain and operations management. Monty also volunteers with Hunger Busters and ManeGait, a therapeutic horsemanship organization.

David is a proven financial and information technology professional with expertise in providing business accounting software and computing solutions. He began his career by starting and managing a successful independent consulting practice for several years. He then launched the local systems consulting unit of Ernst & Young’s Entrepreneurial Services Group, leading the office into the hi-tech consulting arena. After successfully developing the unit for Ernst & Young, David founded NextCorp (which became SMB Suite in 2013) to serve the business software needs of clients throughout the US. David has made SMB Suite one of the best cloud ERP providers in the industry. In addition to being a successful entrepreneur and leader, he is a software and technology specialist, holding certifications in various Microsoft and other technologies.