AlphaCRM economics

Business software and systems are typically sold on one of two business models – purchase or software-as-service.

At first glance the rental model of software-as-service is tempting, with vendors promoting deals such as £1 (or €1) per employee per day. Let’s look at this in the longer term for a growing business:

Year 1 – 10 employees – £3,650
Year 2 – 12 employees – £4,380
Year 3 – 14 employees – £5,110
Year 4 – 16 employees – £5,840
Year 5 – 18 employees – £6,570
Total cost over five years – £25,550

Now compare this to the cost and benefits of a custom AlphaCRM solution:

Indicative small system – £4,000 spread across 2 months
Indicative medium system – £8,000 spread across 3 months
Indicative large system – £12,000 spread across 3 months

From the above simple example of a growing business it’s clear that even a complex AlphaCRM solution custom-built for you has an overall cost of less than half a ‘cheap’ rented system across the same five year period of a business plan. A small system has even paid for itself with 18 months of rental.

A custom-built AlphaCRM solution may qualify you for tax credits or other investment incentives and you will have IP rights on the business processes and data implemented into the system. Your only ongoing cost is predictable system hosting, either with us or with your choice of suitable supplier.

When you factor-in that rented systems may also require a degree of professional services to customise within limits, and you never have ownership, then the perceived value of the off-the-shelf solution reduces even further.

For details about how you can get going with a custom-built AlphaCRM solution for your business, get in touch now.