Tuesday, November 2, 2010

Sharepoint 2010 Costs How Much?

Admittedly, this has been done before, but a client just threw past us a quote from a MS vendor to perform the same work as we are proposing. And a potential customer from outside the US just told us they decided to look into Sharepoint.

Their proposal comes out as about the same amount as 2 weeks of work. Fine, except they proposed to install Sharepoint 2010 and migrate 3-5 Notes Apps to Sharepoint and .NET for this price.

We estimated 4-6 weeks to update them all or roughly a week per app.

So how can a Microsoft Business Partner say they will do everything for so cheap?
And this supposedly includes the licensing too! Which we know is impossible, so we are looking into the other details.

Licensing alone will equal over $15,000 with Software Assurance and here is why:

Hardware Cost for new box
Windows Server 2008 Standard License w/10 CAL $1,209 Pricing here
Windows Server CALs per pack of 20 users $799
Sharepoint 2010 License $4,926
Sharepoint CALs per user Enterprise $83 or Standard $95
SQL Server Standard $898 or Enterprise $8,592 Pricing here
SQL CALs per user $164

That is a a lot of licensing, but wait it gets better, Software Assurance adds between 25-40% to the price, if you want it.

This cost does not include any backup software or cluster/fail over options.

This also does not include the costs/time to write from scratch the apps.

Now compare this to their existing Domino environment.

Servers and licenses all paid for and support maintenance agreement is still in place and renewed.

The applications are already setup for multiple replication where a Domino Enterprise Server is not in use.

Before they get out of the gate, the Microsoft solution costs them at least $15,000 based on my conversation with Microsoft reps on the phone and to validate the pages above.

Honestly, how can they just give applications away for free? Ask them the next time you get pitched on a Sharepoint migration. Make sure you get in writing that they will not ask for more money or get any more money then their bid. Keep them honest and poor.

There is much more out there than meets the eye.