cost of time

8/14/2019 Cost of Time

1/10The Cost of Time in Deploying and Using Technology

page

White Paper

The Cost of Time in

Deploying and UsingTechnology

Small Business


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The Cost of Time in Deploying and Using Technologypage

The Cost o Time in Deploying and Using Technology

Executive SummaryAll technology has its price. But or small businesses, the payment in time is oten more costly than the actualpurchase price. Time has both real and hidden costs, demanding days and sometimes weeks in evaluation,installation, training and maintenance.

Databases are no exception. In act, they are more oten the rule given their reputation and reality orcomplexity.

But this is changing. Database sotware rom FileMaker reduces or removes many o the time-consumingbarriers to adoption and helps small business become instantly productive. Out-o-the-box templates aredesigned specically or many common small business unctions such as managing contacts, organizinginventory or tracking projects. Plus, inormation can be imported into the database directly rom MicrosotExcel spreadsheets, or exported and shared with others in Excel or Adobe PDF over email.

Small businesses dont have the time or money or complicated technology. They need help managinginormation and resources. As the worlds best-selling easy to use database, see why authorities like The NewYork Times have called FileMaker Pro an unsung hero in small businesses.

When it comes to buying and using technology, small businesses oten have the same needs as largecompanies. Whether its a company o 5 or 5,000 employees, businesses look or ways to help people manageindividual inormation, be more productive, and collaborate with others. The main dierence is not in whatsmall businesses need, but in the resources they have available.

Large companies have entire stas o people dedicated to making technology decisions, special budgets,even strategic roadmaps o what to buy, and when. Small businesses, on the other hand, look to technologyto solve immediate problems. Their decisions are oten urgent, and purchases oten come rom the ownerspocket.

It is not surprising, then, that price is a major issue. In act, according to a November 2005 survey by SmallBusiness Trends, the most requent objections to investing in technology are related to price and budget. Butits not just about dollar cost. Its also about the cost o time. For small businesses, lost time or unproductivetime has a more signicant impact on the business than in a large company. Buying, installing and learning touse technology requires time to pick the right product, time to install and maintain it, time to learn how to useit eectively, and nally, to nd useulness beyond the technologys initial purpose.

The good news is there is a whole new class o technology driven by companies like Google and eBay giving small businesses the same capabilities that have traditionally been available only to large companies.While these technologies lower the price, they also increase the speed that small companies can begin to seethe benet to their business.

While much has been written about personal time management or small businesses and individuals, not muchhas been written about the need to manage time or technology.


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Speed MattersMoving quickly makes all the dierence in the world to a small business. Whether it is nding new customers,closing a sale, or shipping a product, speed matters. Its also a competitive advantage or smaller companiescompeting against larger sh.

A new class o sotware and services, driven by some o the largest technology companies in the world, are

helping small businesses move aster and do more. Google makes advertising instantly available to anyone, giving small businesses the same access and

knowledge that large companies traditionally enjoyed

eBay allows small business to sell quickly and competitively on the Web

Apple with its popular iPod and iTunes product lines, small businesses now are creating podcasts, anew and simple low-cost audio and video broadcast marketing medium

Accounting sotware gives accounting control and nancial orecasting to businesses o all sizes

In each instance, improvements in speed across the company led to rapid adoption among small businesses.

Advertising

Placing an ad the rst time on Google takes an hour or two, as opposed to months o working with anad agency and publications.

Marketing

Audio and video broadcasting can be created and synced to iTunes or distribution, instead o thetraditional complex and expensive radio and television broadcast model.

Sales

Oering an item or sale on eBay the rst time takes a couple hours, versus days o placing an ad in thenewspaper, or hiring a rm to create online banner ads.

Finance

Accounting sotware now gives small businesses control and knowledge over nances that weretypically run out o a checkbook, or impossible without hiring a bookkeeper or accountant.

Operations

FileMaker Pro, the #1-selling, easy-to-use database, anyone rom the CEO to a part-time admincan immediately begin managing projects, people and assets without the need or a databaseprogrammer or ull time support sta.

Factors of Technology Time ManagementTaking time to maximize the power o technology can work against a small business in several ways rom thelost productivity o trying to learn the sotware, to the rustration o not being able to share results.


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Not only are costs hidden, but also are incremental increasing the money costs and time commitments

Here are some o the more common business infictions o taking too much time or technology:

I. Time to DeploymentHow long does it take to get started? A day, a week, a month? Can someone start being productive the sameday, or do they need teams o specialists to set up and get started?

Next to price, this could be the single greatest actor in technology selection. In a world o email, cell phones,instantly messaging and web publishing, the time to install and learn new sotware is critical to its use. Smallbusinesses need things to work now, not later.

II. Usability and TrainingOnce the product is ready to use, is it intuitive and natural to learn? Surveys show that even though smallbusinesses value technology, many rely on older, paper-based systems because that is what they know.

In November 2005 survey sponsored by FileMaker:

86% o all respondent think technology helps them work ast

Almost hal still use paper to organize important non-nancial ino

The barriers o adoption or small businesses are not just in needing to understand the value o sotware, butalso in understanding the sotware itsel.

Training is a hidden time bomb. While hard costs such as instructors, acilities, tuition, and materials arereadily visible, it is hidden costs steeped in a learning curve that can take a toll. Aside rom creating a delay inproductivity, training can lead to production losses on an incremental basis.

III. Utility and FlexibilityThe history o computing is, in many ways, an evolution beyond single purpose computing. From the rstprograms that ran on dedicated machines, the trend toward more portable sotware code and componentscontinues to improve sotware design and production. But, or small businesses, portability extends beyondthe code and to the application itsel.

Popular oce sotware like word processing and spreadsheets are used again and again or many dierentpurposes. Small businesses benet most rom sotware with more than one use. Easy-to-use databases cantackle may problems as your business changes and grows.


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IV. Compatibility with popular applicationsIt is simple to share data with colleagues on other computers, over email, or on the Web:

Create Web access with a single click.

Share databases with up to 5 simultaneous users over a network.

Save data in popular ormats such as PDF and Excel.

Share data with both Mac OS or Windows users

Instantly attach data to an email as PDF or Excel to share outside the application.

V. DevelopmentFileMaker does not require any developer time to get started since it comes with starter solutions, but it caneasily be modied as your needs change or projects grow.

Naturally, there are more complex unctions that you can learn over time. Thats why FileMaker has a developerprogram and certication or thousands o FileMaker developers worldwide. Non-technical people can addnew users and security to their database.

VI. Maintenance

To help ensure that your sotware is always up-to-date, FileMaker maintenance contracts are only 20 percento the cost o a new license. And since FileMaker is built on a new architecture (since FileMaker Pro 7), itmeans there is no eort required to convert to new solutions. You simply open data in the new version andimmediately start beneting rom additional eatures.

Compare SoftwareSometimes the best way to demonstrate value is in comparison to others. Last year, Government ComputerNews the publication that covers technology specically or government agencies awarded FileMaker ProReviewers Choice as the top database sotware, beating Microsot Access. The applications were gradedon user interace, eatures, perormance and price. FileMaker received the only overall grade o A (see ullreview here http://www.gcn.com/24_9/prod_reviews/35600-1.html )

Table 1: Microsot and FileMaker Development Solution Three-Year TCO, 5 users

FileMaker Pro Microsoft Access

Database and Development Tool License $1,196 $1,145

Development Cost (5 Knowledge-Worker Applications) $7,500 $15,000

Five Application Upgrades $1,500 $3,000

Toolset Training $0 $1,000

One Platorm Upgrade over Three Years $717 $1,090

Support/Maintenance $0 $1,000

Total Cost of Development Platform Ownership $0,9 $,

Source: Inostructure Associates, May 2006


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Table 2: Microsot and FileMaker Development Solution Three-Year TCO, 1x10

FileMaker Pro Microsoft Access

Database and Development Tool License

10x FileMaker Pro, 1x FileMaker Server(includes one year maintenance)

$2,930

10x Microsot Access, 1x Microsot SQL Server 2005Enterprise Edition

$16,259

Development Environment

FileMaker Pro $0

Microsot Visual Studio Proessional $799

Development Cost (1 Programmer) $13,000 $19,500

Two Application Upgrades (new releases)

FileMaker Pro $5,200

Microsot Visual Studio Proessional $7,800

Deployment Cost $3,000 $4,500

DBA Cost

FileMaker Server $2,000

Microsot SQL Server 2005 Enterprise Edition $33,000

Training (Knowledge Workers and Programmer)

FileMaker $895

Microsot Visual Studio Proessional $4,000

One Platform Upgrade over Three Years $1,550 $2,180

Support/Maintenance $1,226 $5,000

Total Cost of Development Platform Ownership $8,80 $9,08

Source: Inostructure Associates, May 2006

For a more technical comparison between FileMaker Pro and Microsot Access, see FileMaker and MicrosotAccess: A Criteria-based comparison.http://www.lemaker.com/downloads/pd/comparison_m_access.pd

Small Business & Technology Successes

Captain David Cook, PresidentYachtCrews.comFileMaker has made it easy to access my inormation. The other agencies are not even close to what Im doing

to make it easy or crew as well as owners to use the site. The owners like my solution because it is ast and theycan see what a crew member looks like in a matter o seconds. The crew members love it because now theirresumes are seen 24/7 knowing that their password protected inormation is sae and secure.

Keith Sykora, IS ManagerShady Oaks NurseryWe needed a database to store and retrieve customer inormation, mail them our marketing materials,process their orders, control our inventory, and produce reports or the needed eedback to eectivelymanage our business The FileMaker solution has met the challenge by providing a system that is easier to


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The Cost of Time in Deploying and Using Technologypage 8

manage, runs on less expensive hardware, and the maintenance is signicantly less than the Oracle system wehad considered.

Steve Davis, Vice President, Media and CommunicationsNimmo Bay ResortsWe considered other basic CRM packages like GoldMine and ACT! but ound them too cookie-cutter like and

not suitable or our needs, comments Steve. On the higher end, custom solutions done in other databaseslike Oracle and Microsot Access proved to be either ar too expensive and rigid or to limiting in customeature sets. FileMaker Pro has beneted us with a high level o customization while still being very low cost.

Ian Kuhn, Monitor EngineerDave Mathews BandIve seen databases made with other sotware, and they take orever! With FileMaker Pro we can build massivedatabases that just make people gasp at what they can do! The rst ew weeks we were using FileMaker it wassort o an experiment - now its an integral part o the band!

David Hart, Principal and Co-founderMcGinley & Hart (architecture rm)Without FileMaker Pro, I would probably need three or our more people to manage what were doing now.

With ewer sta members and lower overhead, were saving up to $280,000 per year.

Monica Von Thun Calderon, Co-ownerSullivan Street BakeryMost programs designed or bakeries are or large scale manuacture. Small-batch artisan style bakerieshave dierent needs Instead o using several dierent programs, we could consolidate our system throughFileMaker Pro.

Media Praise o FileMaker

Dont just take our word or it. Since shipping in August 2005, FileMaker Pro 8 has received numerous top

editorial awards rom leading publications, including Product o the Year awards rom PC Magazine andMacworld. A columnist rom The New York Times calls FileMaker an unsung hero.

New York Times, David PogueMany small-business owners, in particular, would be lost without some convenient way to track inventory,print invoices, maintain customer lists, tally billable hours, prepare expense reports and so on FileMaker Probecame an unsung hero in small businesses and in homes by permitting even amateurs to create powerul,good-looking databases with no programming.

PC Magazine Product of the YearWith the new version o its venerable database sotware, FileMaker solidies its position as the ideal tool orknowledge workers who want to enjoy the benet o relational databases without scaling the learning curve oa more IT-centric product like Microsot Access.

SmallBusinessComputing.com, Gerry BlackwellFileMaker Pro rom FileMaker, Inc. has quietly grown over a 20-year span rom being a airly simple tool

or developing simple databases to one capable o building very sophisticated systems that can run entirebusinesses. Yet the latest version . . . retains at least some o the programs historical simplicity, and in act addsa bunch o new easy-to-use eatures.

InfoWorldIts time to deep-six Access.


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Appendix

FileMaker: Table vs. Microsot Access

Methodology

Inostructure Associates qualitative research ndings are based on interviews with small businesses usingembedded inrastructure (i.e., platorms with databases) to create new applications, extensive research intothe programmer-productivity characteristics o various types o development tools; and case studies o recentusers o both a 3GL and a higher-level development platorm. The aim o the study is to provide buyers oboth development and production platorms with an understanding o the costs and benets o FileMakerPro vs. Microsot Access. Actual costs incurred by any organization may vary based on each implementationsunique characteristics; hence, costs cited in this study should be used only as broad guidelines.

We consider cases o 5 and 10 users. In the 5-user case, ve copies o FileMaker Pro used standalone arecompared to 5 o Microsot Access. The 5-user case would consider inormal development and use o vesmall applications by knowledge workers (e.g., collating the results o a survey).

In the 10-user case, 1 copy o FileMaker Server plus 10 o FileMaker Pro are compared to one copy o Microsot

SQL Server 2000 and Visual Basic plus 10 copies o Microsot Access. The 10-user case would considerdevelopment o one substantial application by a trained programmer and its use by 10 knowledge workers(e.g., development o a 2-page Web site with customer-order-processing capabilities).

A knowledge workers or developers ully loaded cost is assumed to average $78,000/yr. Knowledge workersupgrade their applications every year.

Further details o the methodology o the Inostructure Associates TCO/ROI study are provided in other TCOstudies published on Inostructure Associates web page at www.valleyviewventures.com.

Database and Dev. Tool License: FileMaker: 5 users = 5-user starter pack. 10 users = volume discount or 10users and FM Server. Microsot: 5 users = 5 times 1-user price (note: volume discounts start at 5 or Microsot).10 users = 10 x 1-user price plus 25-client SS 2005 enterprise edition cost.

Development Environment: Assumed no knowledge workers used or small apps. (5-user case). 10-user case(1 proessional developer): FileMaker: included in FM Pro cost. Microsot: VS Proessional cost.

Development Cost: Assume 5 or 10 small knowledge worker apps. (one per worker) plus 1 larger app byproessional developer (10-user case). Each smaller app. takes 1 week to develop or FM user, 2 or Accessuser. Larger app. takes 2 months or FM user, 3 months or VS user. Multiply by ully loaded worker cost.Application upgrades: 5 or 5-user case (once per year), 2 or 10-user case (o larger app.; smaller app.upgrades ignored or simplicity). 1/2 days per upgrade or 5-user case, about 2/3 weeks per upgrade or 10-user/1-developer case.

Deployment Cost: Assumes no cost to deploy each small app., 2 weeks/1 person to deploy FM large app., 3

weeks/1 person to deploy SS 2005 large app.

DBA Cost: As per previous study, $667/yr. to administer FM Server, $11,000/yr to administer SS 2005.Training: Research indicates no training needed or FileMaker below large-application size; include 1 $895course rom trainer. Microsot estimate based on approximation o $200/course or each knowledge worker,$1,000 development course and $1,000 SS 2005 course or developer.


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Platform Upgrades: Assume neither FM Server nor SS 2005 upgraded over 3-year period. FM 5-user cost isapproximately 5 users = 5-user upgrade pack cost, and 10-user cost is the volume discount. Microsot 5-usercost is 5 x 1-user cost, and 10-user cost is 10 x 1-user cost.

Support/Maintenance: Again, research shows that SMBs do not need to spend anything on FM Prosupport, and 10-user/FM Server support is taken rom FM reseller price list. Microsot 5-user support is 5 x

approximately $67/yr/user, and 10-user support is 2 x 5-user support plus $1,000/year SS 2005 support.

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