How Office 365 helps small business save money

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How Office 365 helps small business save money

When we talk to small business owners about the cloud, a few major concerns rise up: How secure is my data? How does this increase my costs? In this post, we’re going to explore how Office 365 can actually help your small business save money.

The true cost of cloud

When it comes to Microsoft products, there’s a lot of costs involved. A lot. It’s really not an exhaderation on our part either because we have taken Microsoft Licensing classes and have worked with companies of all sizes to help them become compliant. When you don’t know all the true costs, it appears cheaper than it really is. Let’s break down the cost of on-premises services like Skype for Business, Exchange, and Sharepoint.

First, the obvious cost is software licensing. Well, it may not actually be as obvious as you think. Each of these services needs servers to run on which is the cost of a Windows license. Windows Server 2016 Standard costs $759.99. You need at least three servers for each of these services so in just Windows Server licensing, you’re already at $2279.97. Now you have to purchase the actual server software licenses – Skype for Business comes in at $3,352.99; Exchange Server 2016 comes in at $741.99; and Sharepoint Server Standard 2016 comes in at $2,845.99. Already, our total cost of licensing comes to $9,220.94. But we’re not done yet. Our business has five employees (or users) who will be using this software on a daily basis. In order to use these services, each employee needs what is called a “CAL” or Client Access License. For Skype for Business, one CAL costs $36.99; Exchange Server, one CAL costs $97.99; and for Sharepoint, one CAL costs $27.99. Our grand total in licensing is now $10,035.79. But wait, there’s more.

Office Suite Licensing

In order to make use of Exchange and Skype for Business, your employees are going to need the Microsoft Office Suite. You have two options here, and I’ll explain both of them as it can be a little confusing.

Retail License

A retail license is one that you can pick up at Staples. You can even order it online from Microsoft directly. Here’s where it gets merky. Retail licenses are attached to a device as opposed to a user. When you install a retail licensed copy of office on a computer, it’s attached to that computer. It cannot be installed on any other computer in the office. You must also phyically hold on to your license card as proof of license. Retail licensing does not include imaging rights – that is if you take a “snapshot” of the computer’s hard drive and then clone it to other computers, you’re in violation of the license as that retail license is used on more than a single computer. If a computer crashes beyond Windows failing and you have to replace it, you have to legally buy another Office license.

Volume License

A volume license is attached to an organization or company instead of a physical device. If you order five volume licenses, you can legally install the software on five computers owned by the company. This license does contain imaging rights. The same license can be applied on five computers that are imaged. If a computer fails and has to be replaced, you can use the same license on the replacement computer since you technically still have only five licenses in use.

Licensing Cost Differences

Office 2019 Professional (which does not include the Skype for Business client) costs $439.99 per computer. The volume license of Office 2019 Professional costs $531.99. For our cost analysis, we’re going to select the Volume License. Our total cost will be $2,659.95.

Total Cost for On-Prem Licensing

Now that we have all of our appropriate licensing, our grand total is $12,695.74. Wow! We haven’t even factored in the cost of technician time and hardware yet. Once we do that, we’re looking at a bill close to $20,000.

Simplified Costs in the Cloud

One of the driving factors for small businesses to move to the cloud is simplified licensing. With Office 365 Business Premium, you get access to Skype for Business, Exchange, Sharepoint, the full Office suite for both Mac and Windows which allows users to install Office on up to 5 devices (including personal devices), and many other amazing tools like cloud file storage on OneDrive. At $14.95 per user per month, we’re looking at a total cost of $897 per year. More features, more services, simplified licensing, and it allows you to watch your bottom line. Best of all, you always get the latest features and never have to worry about upgrading – it’s all done automatically. Best of all, by going cloud, you save over $12,000!

Office 365 with Xinsto

Office 365 can be configured to meet all sorts of different regulation requirements as well. Businesses both public and private, of all sectors including government, financial, healthcare, retail, restuarants, and more all trust Office 365.

When you order Office 365 through Xinsto, we also offer you a direct point of contact to manage, configure, and mantain Office 365 for your business. Give us a call or email us for a no-obligation quote and free 30 day trial of Office 365. Our experts will help you get everything all setup and show you the benefits.

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