SharePoint Hosting
vs
In-house


 

Answering the In-house or hosted option for your business

 

If your business is looking into using SharePoint as it's collaborative platform, then you may be asking yourself important questions as to how to make a decision on hosting the servers in-house or outsource the hosting to a hosting company.

There is no silver bullet answer to this question. It all depends on what you're trying to achieve and what budget you're working with.

The main factors to consider when making your decision are cost and SharePoint man power. How much will it cost your organization to license SharePoint for your users and keep it up and functional at all times? How much man power and skills do you want to invest in internally to manage the servers and support them? Which ultimately also equates to a dollar figure.

We are going to put a price on how much it would cost to up keep a SharePoint environment. From licensing cost and technical resource cost. The easiest way to do this is to present it in a table. (note that all values in the tables may not be exact are meant to be close enough to the real values.)

  Hosted In-House
  WSS MOSS Standard MOSS Enterprise WSS Office Standard Office Enterprise
Setup Cost FREE FREE FREE $400.00 $400.00 $400
SharePoint User License (CAL) FREE $4.5/month $8/month FREE $94 $75 ( + $94 for standard)
SharePoint Server License FREE FREE FREE FREE $4,451.00 $4,451.00
Support and Maintenance and Upkeep $9-50/month $9-$50/month $9-$50/month >$300 >$500 >$500
TOTAL (for 30 users) $19.99/month $135/month $240/month >$300/month

Up front cost:

$7,671

Recurring cost:

$300/month

Up front cost:

$9,921

Recurring cost:

$300/month

             

To summarize what we see in the table, A WSS hosted solutions can give a company of say 30 users up to 90% since you don't have to worry about managing servers and technical resources. In a MOSS environment you are able to save significant up front costs of $7-10K and cut monthly costs by at least 13%.

Keep in mind that if you host SharePoint in-house, you must repurchase CALs for the new SharePoint product when you upgrade to a newer version of SharePoint. Going with a hosting company, you don't have to re-purchase CALs, all your costs remain the same.

 

For more details on Microsoft SharePoint Pricing visit the Microsoft website.