Exploring the Cost Factor of B2B Integration Choices

Posted by Brad Loetz on Jun 19, 2018 4:53 PM

Exploring the Cost Factor of B2B Integration Choices

Whenever you are considering a new technology solution, cost is one of the first factors that come up. Deploying a B2B integration solution offers you a few options, each option has a different cost attached to it.

Read on to learn about how much each B2B integration deployment costs, and why you should consider other, broader cost categories when making your decision.

What Are Your B2B Integration Deployment Options?

There are four common B2B integration deployment options available: on-premises, hosted, cloud, and hybrid.

On-premises deployments refer to the installation of integration software on an organization’s on-site server. Hosted deployments involve installing integration software on an off-site server. Cloud deployments of integration software mean that the software is delivered over the Internet. A hybrid integration combines two or more methods.

How Much Does Each B2B Integration Deployment Cost?

One consideration to remember is whether your organization prefers to take advantage of depreciation by classifying the cost associated with your deployment method as a capital expenditure or as an operational expense. How does this come into play?

For upfront costs, on-premises deployments will be the most expensive. You are buying the software and hardware to be installed onsite. The most common way to classify the cost is as capital expenditure.

Hosted and cloud B2B integration solutions will have lower upfront fees; you are renting the service rather than purchasing it. The costs associated with this method could be classified as an operational expense. There is one note of caution, however. The cost of “rent” could add up; do the math carefully, because it might cost less to purchase the software eventually.

However, on-premises deployments can have lower maintenance fees than hosted or cloud  deployments. However, you will pay less for upgrades with cloud and hosted deployments, whereas the cost of upgrades (which are necessary for the solution to function properly) will be higher for on-premises solutions. What are some other costs you should consider? One cost is customization and integration. This might not be top of mind when evaluating deployment costs, though it should be. Integrations and customizations are valuable additions to your B2B integration solution. With an on-premises deployment, integrations and customizations are simpler and therefore less expensive. Hosted and cloud deployments are more difficult and more expensive to customize and integrate with existing technology stacks.

Then the cost is associated with staffing. On-premises solutions will require either internal staff to maintain the system or outsourced IT to do so. Hosted and cloud solutions likely require less in the way of internal staffing, as the system maintenance falls largely to the cloud provider. Scalability is another cost which does not always come up during initial discussions. Every business wants to grow, and its technology must grow with it. Scalability can come at a price, though, depending on your deployment. Hosted and cloud deployments are easy to scale because you do not invest any additional resources, while on-premises deployments require more capital to buy more licenses.

Looking for additional information? Get immediate access to a deeper dive in REMEDI's Quick Guide to B2B Integration Choices: On-Premises, Hosted, Cloud, and Hybrid Solutions. This handy comparison chart contains information to make your choice easier.

Evaluating technology costs is never a cut-and-dried matter. With B2B integration deployments, you must think broadly about the costs you will face. A trusted B2B integration solution expert can help you navigate all your options and find the best fit for you. To discuss which type of B2B integration delivery mechanism will work best for you, please contact us to discuss your situation today!

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