Hidden Costs!

When IT implementations are the subject, the first thought of the customer is;“It’s gonna us cost a fortune!”

Well, I can’t claim that it’s NOT true! The experiences in the market;

  1. There is a Wikipedia page that lists “List of failed and over budget custom software projects”. The total cost of these lost projects are approximately $25bn. (these are just publicly listed lost projects…) And many of them are failed due to wrong scope definition or too much scope creep.
  2. According to Gartner’s researches, almost 90% of the IT investments are for just to keep the lights on! In other words, huge maintenance cost. Top-3 reasons of the costs are old technology, on-premise solutions, and too-many customization.
  3. According to the research of Spiceworks, almost 15% of the budget for a breakout of server crashes and almost 10% of the budget for software functional problems in 2016.

 

This proves that IT market has full of “Hidden Costs” including module & plug-in upsells, tailor-made developments, infrastructure requirements, maintenance and upgrade costs as well as software and hardware with an average lifespan of 36 months. Therefore, it is true that you might have a feeling “IT costs fortune….”

 

Nevertheless, the whole world has recently met SaaS model. In the beginning, everyone was a bit skeptical since it sounded as a low-level startup cost but long run paying a fortune. Companies like UBER, AirBnB or Booking.com showed that the “as a Service” model is the best for the market and gave a chance to software companies to reshape their proposition.

 

Companies like EXACT, Jortt or Visma shows that the SaaS model is not a gold-mine solution but real solution for the SMEs where they can get the today’s technology for an affordable price so that they’re not bothered about the unnecessary administration.

 

It’s a fact that IT is getting cheaper and cheaper for SMEs as well. That’s also our goal at Simply Deliver to provide an affordable solution for the whole market so that the competition can be really about the creativity & service level.

 

Osman Akdemir

Founder, Simply Deliver

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