The TCO and ROI of SharePoint

When choosing a team space collaboration technology solution, one should consider both the total cost of ownership (TCO) and the expected return on investment (ROI).   The diagram below shows that a measurable ROI will increase the more structured the context.   In other words, the more structured the context, the easier the ability to measure something which in turn can lead to productivity gains and a higher return on investment. 



Products like MS SharePoint or Lotus Quickr provide a cost effective solution for basic ad-hoc file sharing and project collaboration.  However, additional licensing, applications, and/or custom development may be required the more structured the context thus increasing the TCO and ongoing maintenance of these applications.   Furthermore, ROI may be difficult to calculate as hard numbers are not always easily identified.  The calculation of ROI might need to be focused to a particular business unit use case(s), business process, and might also consider the following:

  • Adoption of Tools: Ensuring users adopt and properly leverage the technology.
  • Perceived Benefits: Ensure the link between technology and (perceived) business value is clear.
  • Timeframe: Establish a timeframe within a realized return on investment could be achieved.
  • Metrics: Attempt to establish both hard and soft metrics in an attempt to measure ROI.
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One Comment to “The TCO and ROI of SharePoint”

  1. I have posted a blog myself on TCO and ROI

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