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“ASC-HS” - The official hosting services for ARCHIBUS, the number one Software Solution for Real Estate, Infrastructure, and Facilities Management in the World


ARCHIBUS On Premises vs ARCHIBUS On Demand TCO comparison

In this document, we analyze the lifetime cost of ownership ("Total Cost of Ownership" – TCO) for a typical on-premises or self hosted in the customer IT infrastructure and compare it to the cost of an equivalent ARCHIBUS On Demand implementation.


Definitions & Confidentiality

DefinitionsAHS: ARCHIBUS Hosting Services / ARCHIBUS Hosting Solutions, includes: ARCHIBUS On Demand (SaaS model), and ARCHIBUS Hosted (PaaS or condo method).

AHS-AHP: ARCHIBUS Hosting Services – Authorized Hosting Partner.

AI: ARCHIBUS, Inc. – Proprietary of ARCHIBUS Hosting Services, and the AHS-AHP Program.

ASC-HS: ARCHIBUS Solution Center – Hosting Services, is in charge of global management of ARCHIBUS Hosting Solutions and the AHS-Authorized Hosting Partner Program.

AHtd: ARCHIBUS Hosted.

AoD: ARCHIBUS On Demand.

ARCHIBUS Cloud Computing global framework: The collection of all the ARCHIBUS Hosting Services - Authorized Hosting Partners, working connected, creating a global network all together.

CONFIDENTIALITYThis document encloses confidential information property of “ARCHIBUS Solution Center - Hosting Services” and which constitutes valuable trade secrets. It is delivered to YOU, the recipient, who expressly agrees to keep it as confidential. By reading hereafter YOU agree not to use it for any other purpose, neither to transfer it to other documents, nor to reproduce it in whole or in part, nor to transfer it to others parties except those stated in the “ARCHIBUS Hosting Services” provision and solely to “ARCHIBUS Solution Center – Hosting Services” approved partners.

Figures about cost in this document are estimated and based in our experience serving projects since 2005. Some data are obtained from external consultants like IDC or Gartner. Data could be different on different regions or different vendors.


year 1 year 2 year 3 year 4 year 5 year 6 year 7

Scope enhancement

Minor Update

Initial implementation

20 Concurrent Users +5 Applications (modules)

Key events in 7 year ownership cycle

5 more Conc. Users (25)

Scope enhancement

3 Additional Applications (8)

Minor Update

Minor Update

Minor Update

Minor Update

Minor Update

Major updateVersion change

"fixes" management costs

Annual costs Annual costs Annual costs Annual costs Annual costs Annual costs Annual costs


Initial implementation

Initial implementation costsSource: ASC-HS

On-Demand($ USD x 1,000 – SRP)

On-Premises($ USD x 1,000 – SRP)

ARCHIBUS Licenses (*) $ 0.0 $ 64.2

Supporting software licenses (OS, DBE…) (**) $ 0.0 $ 4.5

Hardware and server room investment (***) $ 0.0 $ 16.0

Implementation services (****) $ 38.5 $ 48.2

Total $ 38.5 $ 132.9

* 20 Concurrent Users +5 Applications (modules)

** third software (OS, Database Engine, Back-Up, Security, Encryption, etc.)

**** 20% reduction over On Premises cost because methodology and simplicity of implementation process. OP Cost 75% x Licenses.

*** Hardware, plus shared services like: network, security and back-up systems…


Scope enhancement 1 (5 more users)

Scope enhancement costsSource: ASC-HS




Additional supporting software $ 0.0 $ 0.4

Additional hardware and server room (**) $ 0.0 $ 0.0

Implementation services (***) $ 0.2 $ 0.3

Total $ 0.2 $ 4.2

* 5+ Concurrent Users (25)In On Premises only 10 more is allowed

** Works with existing infrastructure

*** 20% reduction over On Premises cost because methodology and simplicity of implementation process. OP Cost 12% x Licenses.


Scope enhancement 2 (3 more modules)Scope enhancement costsSource: ASC-HS

On-Demand($ USD x1,000 – SRP)



Additional supporting software $ 0.0 $ 0.0



Total $ 14.5 $ 46.7

* 3+ additional Applications (now 8 modules) Module average price is $ 8,000

** Usually more performance is needed, that means more disk, or more memory, or processor.

*** 20% reduction over On Premises cost because methodology and simplicity of implementation process. OP Cost 75% x Licenses.


Minor version update(s)

Minor version updates (just services)Source: ASC-HS



ARCHIBUS Licenses $ 0.0 $ 0.0

Additional software support $ 0.0 $ 0.0

Additional hardware and server room $ 0.0 $ 0.0

Implementation services (***) yearly $ 5.2 $ 6.5

Total $ 5.2 $ 6.5

*** 20% reduction over On Premises cost because methodology and simplicity of implementation process.


Major version update

Major version update costsSource: ASC-HS




Additional software support $ 0.0 $ 0.0



Total $ 18.4 $ 28.4

* Included in the subscription program

** On Premises: Compatibility issues request new investments. Estimation is 42% of Initial implementation is need to be renewed.On-Demand Server upgrade fee is applied.

*** 20% reduction over On Premises cost because methodology and simplicity of implementation process. OP Cost is estimated 45% of Initial implementation.


Annual costs year 1 20 Users + 5 Apps

Annual costs – Year 1Source: ASC-HS



Software subscription + support (*) $ 27.6 $ 13.4

Accumulated ARHIBUS subscription (maintenance) $ 0.0 $ 13.4

Supporting Software maintenance 20% $ 0.9

Hardware and server room costs (**) $ 0.0 $ 4.8

Total $ 27.6 $ 19.2

* On-Demand service or On-Premises (21% x $ 64.2 combined – Subscription + Tech support) = $ 13.4

** IT infrastructure (supplies + people)






Software subscription + support $ 38.7 (+ additional) $ 0.7

Accumulated ARHIBUS subscription (maintenance) $ 0.0 $ 14.2


Hardware and server room costs (*) $ 0.0 $ 4.8

Total $ 38.7 $ 19.9

* IT infrastructure (supplies + people)







Accumulated ARHIBUS subscription (maintenance) $ 0 $ 19.3


Hardware and server room costs (*) $ 0 $ 4.8

Total $ 48.6 $ 25.0



Annual costs year 4 to 7 25 Users + 8 Apps

Annual costs – Year 4 to 7Source: ASC-HS


On-Premises($ USD x1,000 – SRP)


Accumulated ARHIBUS subscription (maintenance) $ 0 $ 19.3


Hardware and server room costs (*) $ 0 $ 4.8

Total $ 50.3 $ 25.0



Total Cost of Ownership Over 7 Years

Project stage (key event)On

DemandOn

Premises Difference

Initial Implementation 38.556 132.955 -71%

Scope 1 - 5 more users 253 4.256 -94%

Scope 2 - 3 more applications 14.490 46.863 -69%

Minor version update x6 31.200 39.000 -20%

Major version update 18.502 28.408 -35%

Annual cost in 7 years 309.481 164.658 88%

TCO over 7 years 412.483 416.140 -1%



Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

On Demand 66.218 44.222 68.300 53.810 72.312 53.810 53.810Initial Implementation 38.556Scope 1 - 5 more users 253Scope 2 - 3 more applications 14.490Minor version update 5.200 5.200 5.200 5.200 5.200 5.200Major version update 18.502Annual costs 27.662 38.768 48.610 48.610 48.610 48.610 48.610

On Premises 152.150 30.774 78.452 31.589 59.997 31.589 31.589Initial Implementation 132.955Scope 1 - 5 more users 4.256Scope 2 - 3 more applications 46.863Minor version update 6.500 6.500 6.500 6.500 6.500 6.500Major version update 28.408Annual costs 19.195 20.018 25.089 25.089 25.089 25.089 25.089

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7Accumulated cost On-Premises 152.150 182.924 261.375 292.965 352.962 384.551 416.140Accumulated cost On-Demand 66.218 110.440 178.740 232.550 304.862 358.673 412.483Difference -56% -40% -32% -21% -14% -7% -1%



Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 70

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Accumulated cost On-PremisesAccumulated cost On-Demand


What about financial cost!

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7Accumulated cost On-Premises 152.150 182.924 261.375 292.965 352.962 384.551 416.140Accumulated cost On-Demand 66.218 110.440 178.740 232.550 304.862 358.673 412.483Difference -56% -40% -32% -21% -14% -7% -1%Financial cost

Difference (cash-out) 85.932 72.484 82.636 60.415 48.099 25.878 3.657Year financial cost 4.297 3.624 4.132 12.083 12.025 7.763 1.097

Accumulated financial cost 4.297 7.921 12.053 24.135 36.160 43.924 45.021Models TCO Comparison Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7Accumulated cost On-Premises 156.446 190.844 273.428 317.100 389.122 428.475 461.161Accumulated cost On-Demand 66.218 110.440 178.740 232.550 304.862 358.673 412.483Difference -58% -42% -35% -27% -22% -16% -11%


On Demand TCO is 11% lower

1 2 3 4 5 6 70

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Accumulated cost On-Premises

Accumulated cost On-Demand

Accumulated cost (+fi-nancial) On-Premises

In 7 years


Did you forget to compare… ?

ARCHIBUS On Premises vs ARCHIBUS On Demand TCO comparison © ARCHIBUS Solution Center Hosting Services (ASC-HS)

• Capital Outlay and Cash-Flow financial cost

• Software subscription and support (Subscription + Tech Support combined maintenance)?

• Additional software support needed and its maintenance?

• Hardware and Server room maintenance and annual cost (supplies, people,…)?

• Application maintenance and scope growing annual cost?

After 7 years On Demand is 1% cheaper than On Premises


On Demand is also more profitable to you

ABP profitability On Demand On Premises Difference Initial Implementation 13.495 30.524 -56% BP cost/incomes (revenues) 35% 30% Implementation services revenue 13.495 14.459

25% Licenses 0 16.065

Scope 1 - 5 more users 89 974 -91% Implementation services revenue 89 95

25% Licenses 0 879

Scope 2 - 3 more applications 5.072 11.471 -56% Implementation services revenue 5.072 5.434

25% Licenses 0 6.038

Minor version update x6 10.920 11.700 -7% Implementation services revenue 10.920 11.700

Major version update 36.435 39.038 -7% Implementation services revenue 36.435 39.038

Annual cost in 7 years 77.370 31.063 149%25% Licenses / Service revenue 77.370 31.063

Revenues in 7 years 143.381 124.770 15%

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