Intranet Basics:
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Accurately Assess Intranet Startup Costs
An intranet is one of the first solutions corporations undertake when trying to reduce operating expenses. They provide a great return on investment if implemented properly, but generally require money to start, either through the purchase of an out-of-the-box intranet solution, or dedicating personnel to customizing and implementing open source solutions. Some of the larger businesses may expect to pay upwards of $50,000 for a full fledged intranet, but there are sophisticated intranet solutions available for a much more modest sum. You can pay monthly for a hosted solution, and there are even applications you can use for your intranet that are free. Check out the intranet software page, hosted intranets, and open source intranets pages for details on each. Below are some additional costs you may not have considered to help you plan for a successful implementation.
The Bare Bones of the Intranet
There are some things an intranet may do without, but for the most part there is a well-sized list of things a locally hosted intranet does require.
First, a web server is required. The web server is the entity that actually provides most services to clients. It is the component of the intranet that will allow email to be sent, it may allow files to be shared globally, it can serve a graphical user interface for a database, and much more. Without the web server your intranet would be little more than a glorified LAN connection.
Secondly, we will need the actual computers. Without the client computers we would just have a web server - and that wouldn’t help us one bit! Most business class computers run for under $1,000 each, depending on the performance. Since many business tasks only include word processing, internet access, email, and other simple functions - this is usually an area where costs are cut when assessing intranet costs. It is, however, important to obtain computers that are in good working condition - since obtaining slower computers will actually hurt efficiency, and ultimately undermine the whole purpose of the intranet.
Next we will need a means of connectivity - most commonly LAN or WAN. Without this type of connectivity, we wouldn’t be able to communicate with other computers on the network. LAN connections usually make use of networking cable and devices such as routers. This is usually where the bulk of intranet problems arise. A common networking phrase claims that most networking problems are 99% physical. While this may not always hold true, it does stem from truth. This kind of work, as a result, is usually required to be outsourced to a company or individual who specializes in networking.
An overlooked aspect of the intranet is software. Most of the focus goes onto hardware, since that is usually where most of the time, effort, and money will be poured into. However, there is a dire need for software across the network to be both compatible and updated. For example, you may have a user interface that uses a web browser to visually allow changes to be made to a database. What if one user is using Internet Explorer, while another is using Mozilla Firefox? Clearly, there is room for compatibility issues. In the browser example, you may have to alter your user interface to allow full compatibility to both browsers - or simply demand that one or the other be used.
Actual Costs and Where to Cut Back
As mentioned above, there are quite a few costs involved in setting up an intranet. In the first phase we had the web server - the backbone of the network. As it is indeed the backbone, web servers are generally required to be as fast as possible to increase efficiency and reliability. A fair web server can be obtained from anywhere downwards to $1,000, up to around $5,000 or more. For larger intranets, multiple web servers will most likely be needed. Depending on the size of the intranet, you may only need to invest a fraction of this - and you may even get by with using a spare computer as a web server.
The computers, of course, are where most of the money is likely to be spent. For a company of 500 employees it may be completely necessary to obtain a few hundred computers. A decent computer can be obtained for around $800. Multiplied by a few hundred, this number is soaring into the thousands of dollars range. Again, costs can be cut here by using older computer models if absolutely necessary.
As far as the cabling and networking costs go, you may be able to catch a sigh of relief. Most types of cabling are quite inexpensive; and business class routers, switches, hubs, and other devices are just as easy on your wallet. The biggest threat to the bank account here is actually hiring a designer or networking technician to plan the network. This is sometimes unavoidable, depending on your staff.
Lastly, the software side of an intranet is your safest bet when saving money. Most software can be obtained as open source - meaning you don’t pay a dime. The web browser, for instance, is commonly an unpaid product. You may use OpenOffice as a database program, as compared to the paid database solution Microsoft Access offers. This section of the network is where you can cut startup costs to a grand total of $0 - provided you know where to get the needed software for free.
Closing Comments
Don’t be down-trodden when you check your bank statement, only to see you spent tens of thousands of dollars on a new intranet. Most small businesses likely won’t spend this much - but if you’re anything like Cisco - you spent millions on integrating an intranet solution.
Keep in mind that an intranet is supposed to help you increase profits in the long run. If you don’t think the intranet’s final cost is reasonable, keep looking for ways to downsize your expenses. A penny saved is a penny earned, as they say - something business owners no doubt learned at an early age.
