Last week Microsoft, whose quarterly profits now exceed $5 billion, saw “sustained currency differences between European countries” as an opportunity to raise prices on all its UK volume licenses by an average of 29%. Indeed, customers entering into new Enterprise Agreements will see an average price increase of 25% with Office 365 online services to increase by 21%—and Microsoft said that it couldn’t guarantee that it wouldn’t do future hikes of this nature.

But as any SharePoint administrator will tell you, the license is really only the tip of the TCO iceberg; the hidden costs of SharePoint often add up to a greater TCO (and a bigger headache) for IT. According to a Microsoft-sponsored whitepaper, software licensing only accounts for 7% of the SharePoint price for an on-premise solution. The hardware, consultancy and training accounts for a further 33% but by far the largest component is staffing at 60%. As Microsoft states in its Evaluation Guide to SharePoint: “Whether on-premises or hosted, deploying SharePoint Server requires the IT pro to be heavily involved.”

The hidden costs of SharePoint

SharePoint offers extensive functionalities, but it’s not easy to use out of the box and requires considerable customization and configuration. A Global 360 survey highlights that SharePoint’s out of the box experience is considered ‘great’ by less than a fifth of the respondents. Any customization to this initial experience will cost your organization time and money, often with external SharePoint consultants involved. A recent study by IDC shows that for every dollar spent on Microsoft products, almost eight dollars are spent within its ecosystem of partners and system integrators.

Here’s how Huddle stacks up against total SharePoint cost of ownership:

SharePoint vs Huddle on Costs

Huddle’s pricing structure is different than Microsoft’s—it’s all-inclusive—and we’ll continue to undercut theMicrosoft SharePoint price. Historically we’ve been an average of 30% less expensive overall compared to Microsoft SharePoint, and with the SharePoint price hike, we expect Huddle will cost less than half of the SharePoint price, while delivering the most cost-effective, feature-rich enterprise content management and cloud collaboration solution available.

What are your thoughts on Microsoft’s SharePoint price hike?

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