Pricing Comments: ASP's, Hosting and Web-based Solutions

Too often people try to compare the monthly subscription fee with the cost of the software, but they are not getting a true apples to apples comparison. They tend to ignore costs such as the cost to have your consultant come out each year and install new upgrades or the cost to maintain or replace your file server or its components. Don't make this mistake. When you compare the true costs of what you are really getting, the rental model is almost always the least expensive alternative.

It is important to note that the monthly fee related to ASP, hosting and web-based accounting solutions typically include the following services:

• Software

• Software Upgrades

• Installation of Software Upgrades & Patches 

• Hardware Server

• Hardware Maintenance (add RAM, replace drive, etc.)

• Remote Access Software and Hardware

• SQL Certified Engineers on staff to keep the system up and running

• Back up, Virus Protection, Security Protection

• Insurance costs related to insuring in-house equipment

• Interest costs related to securing a loan

Sample Web-based Pricing 

To give you an idea as to how much you can expect to pay for a web-based solution, consider that Peachtree Complete Accounting's Web Accounting modules costs just $15.00 a month. That's a bargain. QuickBooks for the Web is priced similarly, and Oracle Small Business Manager will set you back about $100 per month. However, a high powered accounting software product such as ACCPAC Online will cost you a bit more. The pricing formula for ACCPAC Online is based on the number of modules and number of users as follows: 

Module Pricing: $35 per module, except for payroll which is priced at $60.
User Pricing: $195 per user

Presented below are some sample calculations for ACCPAC Online:

Sample Monthly Subscription Fee for 8 Module, 1 User System					Cost to Purchase
Total Number of Modules (except payroll)	7	$35.00	$      245
Payroll Module	1	$60.00	$        60
Total Number of Users	1	$     195.00	$      195
Monthly Rental Fee			$      500		$      16,500
Sample Monthly Subscription Fee for 8 Module, 10 User System
Total Number of Modules (except payroll)	7	$35.00	$      245
Payroll Module	1	$60.00	$        60
Total Number of Users	10	$     195.00	$    1,950
Monthly Rental Fee			$    2,255		$      26,500
Sample Monthly Subscription Fee for 8 Module, 15 User System
Total Number of Modules (except payroll)	7	$35.00	$      245
Payroll Module	1	$60.00	$        60
Total Number of Users	15	$     195.00	$    2,925
Monthly Rental Fee			$    3,230		$      41,500
ePeachtree QuickBooks for the Web NetSuite Intacct Accounting ACCPAC Online mySAP

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