Calculating The Fully Loaded Costs Of Corporate Email: It's Bigger Than You Think

Ted-Schadler by Ted Schadler

Since colleague Chris Voce and I published a pair of reports on corporate email in the cloud (one on the infrastructure and operations and one on the cost of running email on-premises or in the cloud), we have had dozens of discussions with our clients accompanied by detailed cost analyses of the true cost of running email on-premises versus running it in the cloud.

While the cloud-based cost of email is pretty transparent (many providers, including Microsoft and Google, publish their per-user per-month costs), the cost of running email on-premises is often a big mystery to everyone, including most CIOs. The big challenge is that the costs are spread throughout the budget: some in the hardware budget, some in the software budget, some in the storage budget, some in the cost of capital budget, some in the staffing budgets, and so on.

After dozens of these discussions and after a survey of 53 information & knowledge management professionals to ask about the cost of email, it is abundantly clear that few firms know their true cost of running email on-premises. And this matters if you're considering a move to cloud-based email.

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