In-depth analyst report estimates the cost of a hosted fax service to be
roughly one-third to one-half the total cost of ownership of fax servers.
OTTAWA, September 12 /CNW/ - As enterprise IT managers and CIOs continue
to be pressed to do more with less, using a hosted fax service can deliver a
total cost of ownership that is roughly one-third to one-half the total cost
of ownership of fax servers. That's the conclusion reached in a new white
paper released today by analyst firm the Robert Frances Group (RFG).
The 14-page report Analyzing Total Cost of Ownership for Internal v.
Hosted Fax Services provides an in-depth look at the ongoing and hidden costs
of using stand-alone fax machines or fax server technology in the enterprise,
and how those costs can be reduced by moving to a hosted fax service.
"One of the key findings RFG has discovered is that owning and managing
fax servers usually has many hidden costs," said Jerald Murphy, senior vice
president and director of research with the Robert Frances Group. "These costs
can include higher installation and deployment costs, integration costs, and
overspending on excess capacity, networking/telephony and maintenance costs.
They also add to IT's burden by creating another complex system that needs to
Murphy went on to state that hosted fax services "offer the same benefits
(over stand-alone fax machines) as fax servers, along with improved mobility,
significantly reduced downtime, scalability, and better security. In addition,
because the infrastructure is outsourced there are no hidden maintenance,
capital and operating costs."
The white paper provides a detailed analysis of both capital and
operational costs involved with a fax server. Annual capital costs include
software, hardware, design, and deployment costs, which in a typical
enterprise sending 10,000 faxes per day are estimated at $6,930.
Even more eye-opening are the operational costs of fax servers. With
software maintenance, networking maintenance, phone charges, and the cost of
personnel to manage them, the total annual burden is an estimated $147,980,
assuming all faxing is done from a central location. In an enterprise with
50,000 users in multiple locations, costs can escalate as high as $1,019,000
annually. RFG estimates the cost of a hosted fax service to be roughly
one-third to one-half the total cost of ownership of fax servers.
One of the features of the white paper is an extensive analysis of the
requirements for enterprise fax solutions. This section looks at factors such
as availability and accountability, cost efficiency, scalability, and security
that have to be taken into account when evaluating which fax solution best
fits the enterprise. Enterprises that fall under legislation such as
Sarbanes-Oxley and the Health Insurance Portability and Accountability Act
(HIPAA) have to meet additional requirements in order to comply with those
laws - a point Murphy says organizations often overlook.
"While there may be some sense of direct control by building a fax
infrastructure internally, RFG has found that there are usually more costs and
less control than executives would like to admit," Murphy said. "Internet fax
services offer well-defined, easy to calculate costs, with none of the
infrastructure planning or costs associated with building a dedicated fax
environment. Typical operational savings should run from 49 to 64 percent of
the costs of building and running service internally. At the same time the
hidden costs are not incurred, security is improved, control is established,
and documents are better managed with increased security."
Analyzing Total Cost of Ownership for Internal v. Hosted Fax Services is
currently available for free download on the MyFax Web site
MyFax is the fastest growing Internet fax service used by individuals,
small, medium and large businesses to send and receive faxes using existing
email accounts or the web. MyFax offers services in North America and Europe,
including the United Kingdom to industries recognized among the fastest
growing adopters of internet fax including finance, insurance, real estate,
healthcare, transportation and government. More than 10,000 new customers
subscribe to MyFax each month. Additional information is available at
www.myfax.com and www.myfax.uk.com .
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