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Cost Of Ownership: Google Apps Implementation
How Does Your Messaging Infrastructure Compare With Google Apps?
Do you know what your organization is paying for your Exchange, Lotus Notes or Groupwise email platform? Are you evaluating migrating your email platform? If you must move off of your existing email platform, you should be able to show good return on investment (ROI), benefits and cost savings, because chances are, you will have to undergo the pain of another scheduled upgrade as vendors release new product versions every few years. Unless you move your current email platform to Google Apps which only requires one time migration costs. Google Apps is about 17% the migration costs of an Exchange implementation.
If your organization needs to migrate off your existing email platform, the following information may help you to make an informed decision.
Google Apps Implementation Costs
Microsoft Exchange and Lotus Notes are probably the most widely deployed email systems in the world. They are also the most expensive to acquire, run, maintain, administer and upgrade. The cost of ownership for GroupWise can be slightly less expensive but the resources needed to support and upgrade each of these systems is astronomical when compared to Google Apps.
If you are deploying a Lotus Notes 6x or Exchange 2003 system, you will need to build the infrastructure, purchase the hardware and software, configure each system, purchase server and/or end user license(s) and purchase additional modules or pay third party providers for Firewall and Antispam services.
With a Google Apps solution, you migrate your users once. End user training and disruptions to productivity are minimal. The following table depicts typical Google Apps license and migration costs for an enterprise with a varied number of users. Google Apps includes messaging and collaboration solutions for email, calendar and group scheduling, integrated chat, documents, spreadsheets, presentations, sites, security, anti spam and anto phishing tools.
| Description | 5,000 Users | 10,000 Users | 50,000 Users | 100,000 Users |
Google Apps Licenses
($50 Per User Per Year, Recurring) | $250,000 | $500,000 | $2,500,000 | $5,000,000 |
| Acquisition Costs |  | | | |
| Hardware | $0 | $0 | $0 | $0 |
| Installation & Configuration | $0 | $0 | $0 | $0 |
| Maintenance Costs | $0 | $0 | $0 | $0 |
| Administration Costs | * | * | * | * |
| Downtime Costs | $0 | $0 | $0 | $0 |
| Storage Costs | $0 | $0 | $0 | $0 |
| Upgrade Costs | $0 | $0 | $0 | $0 |
| Training Costs | ** | ** | ** | ** |
Migration Costs
(1.25x License Costs, One Time Cost) | $312,500 | $625,000 | $3,125,000 | $6,250,000 |
| Total | $562,500 | $1,125,000 | $5,625,000 | $11,250,000 |
| Estimated Cost Savings Year 1 ($250 Per User) | $687,500 | $1,375,000 | $6,875,000 | $13,750,000 |
| Estimated Cost Savings Year 5 ($250 Per User) | $4,687,500 | $9,375,000 | $46,875,000 | $93,750,000 |
Table 7: Google Apps Messaging & Collaboration Costs
*Administration costs are significantly reduced to one part time Admin or eliminated with Google Apps.
**Training costs are included in migration costs.
White Papers: Cost of Ownership for Exchange and Lotus Notes Platforms
The Radicati Group, Inc. | Nexus Secured Communications |
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Western Regional Offices |
If you would like to explore the significant costs savings and ROI of a Google Apps messaging solution, or tell us about your organization
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