1. interact-intranet.com Interact Intranet v SharePoint 2013 An Interact Guide interact - the intelligent intranet Understand the true cost ofyour business intranet
2. interact-intranet.com Interact Intranet vs SharePoint 2013 Theres no doubt that Microsoft SharePoint has been a huge success for Microsoft with over one hundred million licenses sold in its history. SharePoint 2013 is the latest iteration, and includes a number of improvements on previous versions. However, these facts mask the truth about the failed return on investment for many organisations. There have been too many documented examples of costly failed SharePoint projects and reports show that cost overruns of 1 million, 10 million, even 100 million happen regularly. In this document we want to give you a true picture of the costs and impact of Microsoft SharePoint 2013 in order to help you and your company make an informed decision. After all, we understand that a new intranet in your business involves a significant investment in time and money to achieve a new way of working that can have a real business impact in the long-term. Is Microsoft SharePoint the safe choice? When looking for a new solution for their organisation, every board level stakeholder analyses bottom line operational efficiency, cost reduction and risk, and considering a new intranet solution is no different. This broad analysis adds additional pressure to the team or individual responsible for investigating a new intranet solution. The familiar phrase nobody got fired for buying Microsoft provides some sense of comfort when buying a so-called market-leading product. However, this is a false belief as many SharePoint projects simply fail to meet key objectives. One example comes from the AIIM report The SharePoint Puzzle, which reveals only 28% of respondents had SharePoint in use across their whole workforce representing a huge failure in adoption. Understand ALL the costs According to a recent Gartner report* most organisations underestimate SharePoints maintenance and service costs. These can be two or three times more than the initial license price, once add-ons are deployed. Crucially, it is the hidden costs of SharePoint that are rarely considered. On the surface the license costs may seem straightforward, but this is just one minor part of the Total Cost of Ownership (TCO) which can be difficult to predict and can escalate quickly.
3. interact-intranet.com We want to ensure you consider these risks and understand what the cost of these risks are, and explain why so many companies see Interact as a smarter and more cost-effective alternative. * Gartner - Ecosystem Partners That Can Help You Mind Six Gaps in SharePoint Interact Intranet vs. SharePoint 2013 What is SharePoint 2013? SharePoint 2013 is the latest version of an enterprise information portal, from Microsoft, that can be configured to run Intranet, Extranet and Internet sites. Crucially it is not a dedicated intranet platform, rather a development platform designed for multiple purposes. Microsoft itself describes SharePoint as Collaboration, Portal, Search, Enterprise Content Management (ECM), Business process management (BPM) and Business intelligence (BI). So a lot to chose from! SharePoint enables important documents and business processes to be stored centrally and integrates well with the Microsoft Office suite. Overview: 3 year product update life-cycle so it falls behind the rapidly changing intranet landscape quickly Great for building document stores Requires 3rd party integration for responsive design functionality An intranet implementation will require extensive custom development Needs a comprehensive input from specialist SharePoint technical team Takes many months to develop and implement What is Interact Intranet? Interact Intranet is a purpose built out of the box, vastly customisable social intranet platform that is designed for non-technical communication professionals to rapidly deploy content and easily manage internal communications. Interact Intranet offers a blend of communication, collaboration and business process tools that can be tailored to fit any company rapidly. It is incredibly easy to deploy, maintain and use, making it a stress-free choice for organisations looking to communicate and collaborate more effectively. Overview: 3 substantial software updates per year Built for mobile with responsive design allowing content to be viewed on any device Intelligently pushes content to people solving one of the biggest problems in all intranet deployments Out the box (can be up and running in days) Vastly customisable, 100s of features and applications Built on standard Microsoft technologies making it easy to integrate into your IT environment.
4. interact-intranet.com Interact selected as the number 1 alternative In a recent poll on the Intranet Professionals LinkedIn group, Interact Intranet was voted number 1 in the top 20 alternatives to SharePoint? http://www.ragan.com/Main/Articles/The_top_20_alternatives_to_SharePoint_45308.aspx Whats new in SharePoint 2013? SharePoint 2013 provides some new features which include: Improved mobile interface, although as discussed below, this is weak in many areas. Apps add-on options. Yammer integration (only in the Cloud, not on-premise). FAST search inclusion (formerly an option) but note the price rises for this. eDiscovery aimed at legal departments for finding information across SharePoint, Exchange and Lync. However initial feedback is that the complexity of it is holding business back from gaining the compliance benefits for which it was bought. Improved publication for external websites (highlighting that SharePoint is not a dedicated intranet platform) How Much Will Implementing My Intranet Cost? Price is often a key concern when considering a new intranet platform. Many businesses mistakenly assume that because Microsoft SharePoint comes with their existing Microsoft licenses package it will be inexpensive to deploy. However, SharePoint can be very costly depending on which version of the software you opt for and which licence agreement you select. There is a large disparity between license costs and The Cost of Ownership. The SharePoint Census 2012 identified the cost of ownership per user per month to have averaged $48.47 through 2012, up from $45.77 in 2011. There are a number of factors inhibiting faster adoption of Sharepoint, but IT management issues seem to emerge as the most critical. Furthermore many IT departments are understaffed because enterprises underestimate the operations resources required to manage, secure, patch and back up Sharepoint sites, databases servers and farms. Michael Osterman, President ofOsetrman Research
5. interact-intranet.com Ostermans report summarises SharePoint has either had no impact, a doubtful impact or just made things worse for over 30% of businesses using it. Watch the hidden costs The hidden costs are simply very expensive. Most IT managers will fail to scope these correctly as their SharePoint scope changes as the business requirements alter. These alterations often surface only after deployment. To get the best out of Microsoft SharePoint it has to be treated as a software development project and that can be like writing a blank cheque. It is extremely hard to be able to pinpoint and budget/forecast spend on a Microsoft SharePoint project. Microsoft recommends that a SharePoint product deployment requires approximately $8 of customisation services for every $1 of license fee. This is often missed when businesses scope the on- going cost of SharePoint and results in SharePoint being one of the most expensive products available as a companys intranet.
6. interact-intranet.com Gartners* data indicates that 90% of organisations using SharePoint face a challenging decision: either manage the complexity of a SharePoint system augmented by custom code, or use third- party add-ons to fill the gaps in SharePoint. When this cost is factored with maintenance and upkeep, and a potential for a poor return on investment, the financial impact on a business in the long term is enormous. As discussed in the introduction, hiring the skills to maintain this are not easy to find and not cheap when you find them. * Gartner - Ecosystem Partners That Can Help You Mind Six Gaps in SharePoint The Software Cost of SharePoint vs Interact Intranet Finding a true comparative cost for SharePoint 2013 is unclear. Depending on the SharePoint reseller used, prices can fluctuate. However what is clear is that the cost of implementing SharePoint 2013 is significantly higher than its predecessor 2010, a rise of 15%, as Fast Search and licences (CALs) for websites / extranets are now included. Below is a comparison of the estimated costs of SharePoint 2013 and Interact Intranet: 8,000 ($12,000) 4,666 ($7,000) 18,000 ($27,000) 9,333 ($14,000) 22,500 ($33,750) 9,333 ($14,000) 5,000 ($7,500) 16,666 ($25,000) 20,000 ($32,000) 66,666 ($100,000) 25,000 ($33,750) 166,666 ($250,000) 5,000 ($7,500) 37,717 ($56,576) 10,000 ($15,000) 73,728 ($110,592) 15,000 ($22,500) 122,880 ($184,320) 5,000 ($7,500) 5,333 ($8,000) 7,500 ($11,250) 8,000 ($12,000) 10,000 ($15,000) 10,666 ($16,000) 23,000 ($34,500) 64,384 ($96,576) 55,500 ($85,250) 157,728 ($236,592) 72,500 ($108,750) 309,546 ($464,320) 250 Users 1000 Users 2500 Users Interact Intranet SharePoint 2013 Interact Intranet SharePoint 2013 Interact Intranet SharePoint 2013 Number of User Typical software costs 1 User licences (CALs) Implement -ation labour costs 2 Intranet planning, taxonomy & launch 3 Total Cost The cost of the server software looks cheap but the CALs in Microsoft SharePoint are expensive. Conversion to $s based on 1.5. Company Name
7. interact-intranet.com 1. Interact Intranet additional modules are included in this cost a typical configuration is assumed for 250, 1000, and 2500 users. Microsoft SharePoint 2013 figures taken from Estimating 2013 licensing costs - http://www.degdigital.com/blog/sharepoint-2013-licensing-for-dummies/ 2. Microsoft SharePoint 2010 implementation labour costs taken from: Forrester - The Total Economic ImpactTM of Microsoft SharePoint Server 2010 (http://www.microsoft.com/presspass/presskits/2010office/docs/TEI_sharepoint.pdf) 3. Interact Intranet figures based on average of 100 companies of similar size. SharePoint cost is based on an identical sized solution with a Microsoft SharePoint implementer as with Interact. What Will The Impact On My IT Resources Be? A SharePoint implementation requires specialist skills to develop, manage, secure, patch and back up SharePoint sites, databases, servers and farms despite being implemented in a Microsoft environment. Given the average salary for SharePoint specialists is 42,500 in the UK, and $74,000 in the US (much higher for professional services day rates), costs can quickly add up. Basing these figures against The Osterman Reports statement that the average SharePoint specialist team size is 2 people then its likely to be 85,000 (excluding UK benefits) or $148,000 (excluding US Benefits). This is before you factor in recruitment fees (typically 15% in 2013 according to Monster) that could see you paying 12,500 ($19,000) to agencies to bring these resources on board. Interact is low maintenance. It can easily be supported by a standard IT department, seamlessly integrated with your existing environment and has the option of annual support with our specialist Service Desk. We would not expect you to need to employ additional technical resources. See next page for resource cost comparison >
8. interact-intranet.com To put this into context, you may decide to pay a 3rd party to implement your SharePoint intranet which will attract a high initial cost, rather than opting for in-house services. Your requirements are likely to change over time needing you to re-engage the 3rd party or bring in contractors at a minimum cost of 350 ($525) per day on average. If you dont have immediate access to budget or struggle to get consultancy or contractor time when you need it, you are unlikely to be able to implement or integrate the tools you need. This creates a difficult balance between business need and available specialist resources. Imagine that a new feature was required, and that it takes ten days to develop. That is 350 x 10 = 3,500 ($5,250) - just to add one simple feature! With Interact, non-technical teams run 87% of our implementations, usually in HR, Internal Communications and Marketing. We also have a great track record of working with the IT team to initially set-up and configure the solution, requiring minimal on-going administration. Interact is an out-of-the-box solution To enable additional functionality you simply tick a box and with three major updates available each year Interact is more flexible in meeting your changing needs compared to Microsofts three year product cycle. If you have development skills in-house you can also take advantage of the Developer API to integrate custom solutions with the Interact platform. Microsoft SharePoint Likely total additional cost year one for employing SharePoint technical resources: 2 x 42,500 salary + 12,500 recruitment fees = 97,500 (+ benefits). Over 3 years that cost would be 267,500 assuming salary is not increased in service. Interact Intranet Likely total additional cost year one for employing Interact technical resources: 0 Specialist technical skills are simply not required to implement Interact in your business. Microsoft Sharepoint vs Interact Cost Comparison Year 1: 97,500 0
9. interact-intranet.com Is SharePoint Right For My Business? Ultimately this depends on your business requirements and a true understanding of what SharePoint is. SharePoint has evolved to become the Swiss army knife of corporate IT departments, promising collaboration, team and project management, electronic content management (ECM), intranets and portals, records management, and more - straight out-of-the-box. However, whilst a Swiss army knife is useful because it has many different tools, none of those would normally be the tool of choice for a professional in any single area. Its no secret that Microsoft SharePoint is a comprehensive Document Management System (DMS). The integrations with other Microsoft products (i.e. Microsoft Office) are compelling from this perspective. But if you are looking for a comprehensive intranet platform that forms a key part of your internal communication strategy, is it really the right choice? As mentioned above, SharePoint can quickly become expensive. The most successful and award winning SharePoint sites mentioned in publications such as the Nielsen Normal Group Best Intranets or Ragan Awards are often for large organisations where significant budget has been allocated. At Interact we recognise and understand that if you are an organisation with over 7500 employees, and have a signi...