A balanced financial case for web tools for key business functions

Posted by admin on July 14, 2009 under Uncategorized | Be the First to Comment

NetSuite Pricing

I want to share a few thoughts on why you should turn to the web for vital business systems such as the general ledger and customer records. Here a few ideas you should think about before using web applications for mission critical tasks.

It’s entirely feasible to use web applications to run core business functions. There’s web based applications for accounting, business planning, market research, customer management, expense claim automation, time capture and sales team coordination costing less than traditional systems. Some vendors have developed systems containing all of this functionality. 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. There is definitely a gap between the ongoing costs of an on premise and off premise system, stare at it carefully.

Web based applications for small and medium sized businesses are available on a trial and subscription basis therefore mitigating the risks. 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. Never take your eye off the costs and keep your head when signing that agreement.

Warning – don’t overlook the following financial and operational risks often lurking in these types of systems.

Your are probably familiar with the downstream costs of software. Such as implementation, customisation and upgrades to newer versions. This is still software.

The financial consequences of changing to another system may not show up in the vendors sales pitch. The task of information transfer and its associated costs are not often disclosed. 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. Do not fall asleep at the wheel on thsi one it could cost you your business. We’ll be adding more on this soon