Step 4: Consider the technology requirements
One of the most important aspects of a business
case is to include the technical requirements for the
desired solution. Every vendor you consider will have
different technical requirements. These differences
can have a high impact on the functionality,
compliance, cost of purchase, and total cost of
One of the biggest mistakes many organizations
make in purchasing any new software is trying
to “save money” by not purchasing enough
implementation support. In the end, these companies
are not able to set up and implement the software properly
on their own, resulting in low engagement, wasted time
and money, and no ROI on the investment. To compound
the problem, many vendors don’t include implementation
information in preliminary pricing. It’s vital to understand the
implementation requirements and costs at this stage in order to
build the strongest possible business case and ensure long-term
success with this investment.
To drastically impact who makes your vendor shortlist, here are some
of the key questions to include as part of your vendor discovery:
Cloud or On-Premises?
a. Is your project budgeted for CapEx or OpEx? Cloud will
generally be a SaaS-based pricing model, which means
yearly recurring cost. Although SaaS can sometimes still be
purchased through CapEx budgets, it is typically considered
an OpEx line item. On-premises may also be yearly recurring
cost or perpetual license depending on the vendor.
Perpetual licenses are often approved for CapEx budgets and
maintenance and support is typically then part of the OpEx
b. Is there any functionality difference between platforms?
Some vendors will have no functionality differences between
their on-premises and cloud platforms, where others
will have exceptionally limited functionality in one of the
platforms. It’s important to understand the differences.
c. How much server space is required for on-premises? What
operating are compatible with this software?
d. How often do updates occur, and are the updates automatic?
e. Compliance: Have a full list of all major compliance standards
your organization requires (ex. HIPAA, FedRamp, SOC) This
can drastically impact if an on-premise or cloud is the best fit.
2. Who takes care of the implementation?
a. Are we responsible for all implementation on our own or
does the vendor recommend implementation and training