Lowering Your Total Cost of Ownership – E-mail

It’s no surprise that e-mail has rapidly become a mission critical application in most businesses today. But what is often misunderstood is the Total Cost of Ownership (TCO) of owning, maintaining, and operating the email platform in-house.

When thinking about the total cost of ownership on a per mail box basis, a number of factors both one time nature and ongoing must be taken into account:

Hardware – to provide a highly available solution, a substantial capital investment needs to be made in order to build a redundant system that includes not only the servers themselves, but other networking and power supply components that ensure email is up, running and accessible 24×7. From the very beginning, this system will need to have excess capacity in order to accommodate future growth, both in number of users, but also mailbox growth. That is capacity that you are paying for day one, even when you don’t need it. You should also take into account the ongoing costs of maintaining your support contracts from the hardware vendor and also take into consideration how much power the platform consumes and how much it costs to cool as well.

Software – when considering the cost of your software include both the upfront investment and the ongoing annual license fees and support costs.

Labor – after the initial costs of implementing the email platform, what are the ongoing labor costs? Take into account, how much time is taken up by the IT departments in conducting routine maintenance and administration of the system such as adds/moves/deletes of mail boxes. The fully loaded hourly labor cost adds up quickly! Could these hours be used elsewhere on revenue generating projects or projects of a strategic nature? Could those hours be used more productively elsewhere?

In addition to the above hard costs that are easily identifiable, there is also the cost associated with down time and data loss. The scalability and flexibility of your platform may also not have a direct cost, but as an intangible cost, consider how easily your current email system can change with your business needs and the potential impact that may have on your growth and time to market.

An alternative solution to deploying and managing this in house, and a means of reducing the TCO is to outsource. Datotel’s Managed Hosted email solution is based upon the Microsoft Exchange platform; we use fully redundant systems and monitor and manage the platform 24 x 7 to ensure high availability. More importantly in regards to TCO, our customers have no upfront expense and simply pay on a monthly basis for the number of mail boxes they need, allowing them to free up their labor and cash to be used for more strategic projects.

Let Datotel manage your communications platform for you. Contact us for more information.

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