How do you measure cost-effectiveness in software? | How do you know if a technical service is worthwhile? |
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Some look at the up-front cost; we beg to differ. For serious implementations, the real cost of software goes far beyond the license itself, and includes:
- Developer time for evaluation, testing, implementation and integration. This is itself heavily influenced by:
- The quality of the documentation
- The responsiveness of support staff
- The availability of code examples and other learning aides
- Resources consumed by the use of the software.
- Reliability of the software across all possible use-cases (often the most "expensive" aspect of cheaper software).
- Flexibility and adaptability of the software relative to the competition.
To achieve real cost-effectiveness we recommend you look for the following qualities in server software for high-demand workflows:
- Memory-allocation independent (application terminates after execution).
- Fully separable from other functions.
- Proven track-record of reliability in high-volume production environments.
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When it comes to professional services, you know you're fundamentally paying by the hour, so real cost-effectiveness should be relatively easy to determine.
3rd party professional services compete against your own in-house resources, so the first questions in determining whether a service is cost-effective are actually about your organization:
- Can you readily frame the project and determine its components, or is that part of why you need a service provider?
- Do you have or can you acquire the required skill-sets in-house?
- Does your timeframe preclude using existing overburdened in-house resources?
- Are work-volumes exceeding in-house capacity?
The real cost of professional services includes:
- The time required to frame the project requirements at a useful level of detail.
- The time required to educate the candidate service providers (including in-house resources) on the project requirements.
- The time to evaluate competing proposals.
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