Bitrix® Intranet Portal TCO/ROI Evaluation

Online, September 23, 2010 (Newswire.com) - ALEXANDRIA , VA. - Bitrix, Inc. (www.bitrixsoft.com), a technology trendsetter in business communications solutions, announces the availability of online calculator for click-away assessment of key financial indicators illustrating the total cost and economic effectiveness of Bitrix® Intranet Portal.

For many years the issue of calculating TCO, ROI or other financial indicators casting light on intranet deployment economic efficiency has been provoking discussions. The viewpoints range from "my time is too valuable to make the calculation" to "every benefit can be calculated and should be calculated". And there is still no commonly adopted approach for evaluating total cost of an intranet solution or assessing its return on investment.

As intranet technologies successfully make their way to mass adoption among small and medium-sized businesses, customers urgently need a crystal-clear explanation of their benefits from intranet deployment.

"We evaluated existing approaches, considered industry and customer opinions and created an intelligible methodology for TCO/ROI calculation. It is based on our years of experience in implementing intranet solutions and provides deep insight into the real value of intranets for SMBs," said Dmitry Valyanov begin_of_the_skype_highlighting end_of_the_skype_highlighting, President of Bitrix.

The online calculator gives an understanding of Bitrix Intranet Portal's total cost of ownership by simply entering the basic input parameter illustrating the number of intranet users in the organization. In the advanced mode, the calculation may be specified by adjusting the average salary, staff upkeep and turnover and implementation risks. The calculator immediately returns the TCO assessment for a 3-year period with visual breakdown in implementation (software/hardware acquisition, installation, content population and training) and maintenance (license renewal, hardware upkeep, ongoing training, content management) costs.

The ROI assessment is based on the assumption that virtually any efficiency indicator can be interpreted as a savings of time. Therefore, a customer may evaluate the intranet ROI by simply entering the amount of time saved per day per user. The calculator also provides other financial indicators (NPV, IRR) illustrating the intranet investment efficiency compared to a theoretical deposit at a given discount rate.

A sample calculation of Bitrix Intranet Portal key financial indicators for a typical company of 200 intranet users shows the solution's 3-year TCO at $72,960 and breakeven point at 1.3 minutes of time savings per user per day to justify the investment.

Despite skepticism some analysts may express, calculating economic metrics for an intranet portal is not unfeasible. Such evaluations do not indeed account for the whole range of advancements the introduction of the portal may bring. However, even the tip of the iceberg provides conclusive evidence for acquisition.

The modern business environment demands that an intranet be an organic part of an effective organization, just like a website or e-mail. An intranet is the means to create effective workplaces and improve employee motivation; it helps to close or at least greatly narrow the communication gap between the management and the employees and offers sophisticated business monitoring tools.

"As an investment, an intranet portal is a rare opportunity that not only is demonstrably profitable based on its effect on basic operations, but also provides massive upside potential through the real, but less measurable, dimensions of transparency and collaboration," said Dmitry Valyanov.

Bitrix Intranet Portal TCO/ROI calculator is available online.

Read more about TCO/ROI assessment methodology in a dedicated white paper