Ferris: Microsoft Online Collaboration Services Are Reasonably Priced

Nick Shelness of Ferris Research makes the comparison between a Microsoft based on premise solution vs the Business Productivity Online Solution :

… Microsoft Online Services are reasonably priced compared to the cost of running equivalent on-premises software.

Consider what’s likely to be a common purchase of Microsoft Online Services:

  • Exchange Online (email/calendaring/address books)
  • Office Communications Online (presence/instant messaging)
  • Office Live Meeting (Web conferencing)
  • SharePoint Online (shared spaces/workflow management)
  • Exchange Hosted Services (email archiving/spam and malware filtering)

The price varies on whether elements are purchased singly or in a bundle, but it seems $15/user/month will be common, with volume discounts of around 20%.

Using the on-premises versions of Exchange, OCS, and SharePoint, Microsoft typically receives annual income of about $60 to $80/user/year; or $5-$7/user/month. For example, consider the Small Business Server Standard Edition pricing, which basically provides Exchange, SharePoint, and anti-spam and anti-virus for Exchange. For 100 users, it costs:

  • $1,089 for the server license and five-user clients access licenses (”CALs”)
  • $7,315 for 95 CALs, which are payable annually …

Continue at Source: Microsoft Online Collaboration Services Are Reasonably Priced

Peter de Haas
Peter de Haas

Peter is gedreven door de eindeloze mogelijkheden die technologische vooruitgang biedt. Met een scherp oog voor het herkennen van oplossingen waar anderen slechts problemen zien, is hij een expert in digitale transformaties. Peter zet zich met volle overgave in om individuen, teams en organisaties te begeleiden bij het ontwikkelen van nieuwe vaardigheden en het implementeren van innovatieve oplossingen.

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  1. I agree that MS Online Services (BPOS) do offer a great price saving over on-premise solutions a lot of the time, the above is slightly mis-leading. Simply because SBS is limited to 75 users so the price calculation is a little off and I also believe that the prices contained in the MS page you link to are for perpetual licences, thus any costs are “one-off” and not on a subscription basis as described above.

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