Internet Student ServicesCost-Benefit Analysis |
The table below shows some sample costs for a mid-sized college. The exact numbers will depend upon the size of the institution, special requirements and amount of effort supplied locally versus purchased.
| Internet Student System | Existing Legacy System | Other Vendors | Your System | |
| Software | $50,000-$100,000 | Paid For | $500,000-$2,000,000 | |
| Database Licenses | $50,000-$100,000 | Paid For | $50,000-$200,000 | |
| Hardware | $50,000-$100,000 | Paid For | $50,000-$1,000,000 | |
| Staff Support | 2 persons @ $50,000 | 5-10 persons @$50,000 | 2-10 persons @$50,000 | |
| Transition Costs | $25,000-$100,000 | NA | $100,000-$1,000,000 | |
| Yearly Support | $10,000-$20,000 | $200,000-$500,000 | $100,000-$500,000 | |
| Two Year Totals Low Range | $395,000 | $700,000 | $1,000,000 | |
| Two Year Totals High Range | $620,000 | $1,000,000 | $6,200,000 | |
| Amortization Time | One Year | NA | Never | |
| Future Annual Savings | $200,000-$500,000 | -0- | -0- |
Because of the dramatic decrease in the cost of software and hardware it is possible to recover the expenses of a new system in one year! Savings will continue to mount up in subsequent years. The money saved can be reallocated to other areas rather than being absorbed in maintaining an expensive, inefficient legacy system.
