Close

May 31, 2018

Leveraging Office 365 In Small Businesses

Leveraging Office 365

At Brock IT we deal primarily with small and medium sized businesses around eastern Ontario and the most common statement we hear from businesses we meet is that they don’t see the value in IT systems. It’s an expense to them and not treated as an asset. This is, in my opinion anyway, caused by a lack of understanding of what these systems can do to increase your revenue and the efficiency of your team members.

We include Office 365 Business Premium licenses for all our clients as well as their staff and teach them how to use it effectively to increase the performance of their staff. Skype for business for example, is an amazing tool for conference calls, webinars, sales meetings, etc. We use it extensively at Brock IT to keep in touch with our clients and have regular reviews with them. We’re the first to admit it isn’t as effective as a face to face meeting, but for clients which are hours away it is an extremely close second for relationship management.

Office 365 reduces your costs by eliminating the capital expenditures every couple years on new Microsoft Exchange servers and the associated hardware and licensing. The average Exchange server costs just shy of $15,000 to build once you’ve factored in storage, server license, exchange license, Exchange user CALs and backups for the accounts. In that same scenario of about 30 users, Office 365 would have cost $15.20 per user for a total of $459 per month. That’s $5,500 per year, instead of paying $15,000 up front. But it’s actually not that simple.

With 365 Business Premium you also get the latest Office suite for all those users, Sharepoint, Teams, Skype for Business and a number of other services. The office suite alone is $500 per user so that’s another $15,000 dollars of value you get with 365 over buying outright.

So, assuming you buy the services outright you’ve only gotten email and Office 2016 for roughly $30,000 and you could have done the same thing with less hassle for $459/month. Don’t forget, that $30,000 is going to need to be spent again in 3-4 years anyway. So lets compare the numbers and stretch that Exchange purchase out to beyond best practice longevity to 5 years. Office 365 is still only $27,540 over 5 years vs the $30,000 for Exchange alone. And as we mentioned before, Office 365 gives you the latest Office suite available so by then, you’ve already upgraded all your staff to the latest Office suite which would have cost you $15,000 dollars to purchase outright.

Moral of this story, sometimes you can do more for less money.