Our Services
Why
"Custom",
not
"Canned"?
(cost-of-ownership &
more)
Our Services: Why "Custom", not "Canned"? (cost-of-ownership & more)
Consider the following three-year model for an actual project we developed for one of our clients:
Sample 3-Year Cost of Ownership
Type of Cost |
Year |
Description | Cost |
| Investment cost | 1 |
Design, development, testing, installation, integration, training | $ 50,000.00 |
| Investment cost | 1 | Additional required hardware, software, networking equipment (none: already have standard Pentium-type PC's in place) | $ 0.00 |
| Investment cost | 1 | Proprietary equipment required (none) | $ 0.00 |
| Investment cost | 1 | On-site installation (included above) | $ 0.00 |
| Investment cost | 1 | On-site integration (included above) | $ 0.00 |
| Investment cost | 1 | On-site training (included above) | $ 0.00 |
| Recurring cost | 1 | Error correction, if any (no charge) | $ 0.00 |
| Recurring cost | 1 | Technical support (case-by-case basis, estimated at 1 hour per week for 52 weeks, at our standard rate of $110/hr) | $ 5,720.00 |
| Non-recurring cost | 1 | Miscellaneous costs (air fare, travel expenses, & lodging for on-site visits) | $ 7,000.00 |
| Recurring cost | 2 | Error correction, if any (no charge) | $ 0.00 |
| Recurring cost | 2 | Technical support (case-by-case basis, estimated at 1 hour per week for 26 weeks, at our standard rate of $110/hr) | $ 2,860.00 |
| Non-recurring cost | 2 | Upgrades or enhancements (directly requested by client, case-by-case basis, estimated at 100 hours at our standard rate of $110/hr) | $ 11,000.00 |
| Recurring cost | 3 | Error correction, if any (no charge) | $ 0.00 |
| Recurring cost | 3 | Technical support (case-by-case basis, estimated at 1 hour per week for 13 weeks, at our standard rate of $110/hr) | $ 1,430.00 |
| Non-recurring cost | 3 | Upgrades or enhancements (directly requested by client, case-by-case basis, estimated at 50 hours at our standard rate of $110/hr) | $ 5,500.00 |
Sample Year 1 Investment costs: $ 50,000.00
Sample Year 1 Recurring costs: $
5,720.00
Sample Year 1 Non-recurring costs: $
7,000.00
Investment, Recurring, and Non-recurring costs (Year 1): $ 62,720.00
Sample Year 2 Investment costs: $ 0.00
Sample Year 2 Recurring costs: $
2,860.00
Sample Year 2 Non-recurring costs: $
11,000.00
Investment, Recurring, and Non-recurring costs (Year 2): $ 13,860.00
Sample Year 3 Investment costs: $ 0.00
Sample Year 3 Recurring costs: $
1,430.00
Sample Year 3 Non-recurring costs: $
5,500.00
Investment, Recurring, and Non-recurring costs (Year 3): $ 6,930.00