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InfoTrends: SharePoint 2010 Cost of Ownership—Expect the Unexpected

In a new white paper, leading market research and consulting firm InfoTrends concludes that for many organizations the total cost of ownership (TCO) of Microsoft SharePoint 2010 can be much higher than expected—and that Oracle WebCenter can significantly lower TCO for user engagement solutions.

"We knew SharePoint integration was going to be expensive, but we far underestimated what it would cost because we didn't know what we didn't know," the CIO of a U.S. defense contractor told the authors of the report, SharePoint 2010 Cost of Ownership: Expect the Unexpected.

From Incremental to Prohibitive
In its research, InfoTrends focused specifically on companies deploying more advanced user engagement capabilities.

"These companies found the long-term SharePoint costs grow from incremental to potentially prohibitive based on higher-than-expected costs for third-party add-on software, migrations from previous versions of SharePoint, development and integration, as well as ongoing management and administration," the report's authors write.

Key research findings include
  • SharePoint 2010 adoption relative to all SharePoint use is still low, at 22 percent
  • Pilot integration projects for SharePoint with enterprise applications have taken up to twice as long as expected and at double the expected cost
  • Just more than 5 percent of the three-year cost of ownership of SharePoint 2010 went to licensing, with the other 95 percent going to third-party add-on software, infrastructure upgrades, customizations and integrations, ongoing management and administration, and so on.
Lower TCO for Oracle WebCenter
Oracle WebCenter, by contrast, can provide a user engagement solution that is more comprehensive and more cost-effective, according to the report.

Despite requiring a higher percentage of TCO for licensing fees, the report finds that Oracle WebCenter customers can achieve both lower and more predictable overall costs compared to SharePoint, thanks to
  • More advanced native capabilities. Minimizes the need for third-party add-ons, customer developments and integrations.
  • Fewer software prerequisites. Lowers infrastructure costs by reducing reliance on current versions of Microsoft server and desktop software products to deliver advanced capabilities.
  • Prebuilt enterprise connectivity. Provides an open and productized integration approach, with many prebuilt adapters to enterprise applications and content systems.
  • Less human-intensive administration. Lowers the ongoing cost of management by reducing third-party add-ons, customer development, and customized integrations.
Interested in learning more? Watch this Webcast to get more information about the research study, as well as to hear survey results from customers.

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