The hidden costs and risks of using web based software in a small business
Here’s the case for web applications as tools to increase productivity in key areas such as management reporting and customer interaction. I am going to tell you about some of the key issues you should be aware of before using internet business applications.
There is a growing trend to run key business systems on the web. There is software for accounting, business planning and research, customer interaction management, employee expense claim tracking, time capture and sales management available for less than the cost of traditional systems. Its possible to buy one system where all of this functionality is integrated. 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 are plenty of good consultants who can reflect honestly on the lifetime costs of on and offline systems.
Many web applications can be instantly trialed for free lowering the buyers risk. 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. My advice is look at something like salesorder dot come first then move up from there.
Some advice you should heed before you purchase anything as there may be financial and operational risks that are not apparent.
Some of the costs you expect in licensed software are present in internet software. I am talking of course about implementation, customisation and upgrades to new versions. Software manufacturers are fairly predictable.
The financial consequnces that are not so apparent are vendor switching costs. Easily transferring information from the original to the new systems may be expensive. 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. Look for a vendor who turns away business and theirin you will find quality. Best of luck with your project