Total Cost of Ownership: A Case for Cloud Chiro Software

Is licensing cloud-based software less expensive than server-based? If you are wondering about the cost-effectiveness of licensing server-based software versus cloud solutions, you’re not alone.

Cloud-native or cloud-based software solutions are fast becoming the norm. As a result, there’s been an influx of companies trying to assess what’s more economical — using a locally-run server or subscribing to a cloud solution.

Distinguishing Fact From Fiction Can Be Challenging

Moving to a cloud-based software approach can lower IT costs by up to 30 percent. It can also streamline your business processes, enhance patient and staff satisfaction, and enable your practice to speed up its growth rate. This article uncovers the main factors to consider in a cloud versus server-based software analysis.

How cloud-based software can drive down your total cost of ownership (TCO)

No initial lump sum payment is required upfront.
Software enhancements and maintenance are included in your subscription.
Ability to treat your software purchase as an operating expense immediately.
No need to invest in a server to run it on.
No more IT maintenance expenses or specialized admin resources required.

In combination, these elements help improve TCO, which improves your bottom line, now and in the future.

What Are the Cost Advantages of Cloud-Based Chirotouch?

Although there are many benefits to using cloud-based software — access anywhere, anytime, from any device via the cloud, for example, when it comes to cost savings, we see even more significant potential advantages for your practice.

The cost-saving benefits of cloud-based ChiroTouch come from various direct and indirect sources. Let’s take a look at a few of these advantages now.

1. Infrastructure: Eliminate Hardware and Infrastructure Purchase Costs

Factors that contribute to lower total cost of ownership (TCO) include eliminating hardware and infrastructure purchase costs, along with the associated cost of maintenance and the cost of obsolescence.

For example, servers can cost anywhere from $4k to $30K, depending on the network need. And, on average, the cost for private IT support starts around $100 per hour of work, or a flat fee per visit. So, depending on the size and complexity of your practice, those costs can add up and take a big bite out of your bottom line.

Additional infrastructure costs can also set you back. Many server-based ChiroTouch practices require an SQL upgrade to support their databases, which can turn into a sizable expense for your practice.

2. IT Administration: Lower Your Operating Costs

Managing software and related hardware can be one of the most significant costs of operating your practice software. Whether you have someone working for you who helps with your IT administration on a regular basis or annually, there is a cost to your business.

Hiring experts to help manage your network and IT systems can be expensive. Many practices end up economizing on IT costs by taking shortcuts. Are your security and firewall measures in place, up-to-date, and robust enough to withstand sophisticated cyber-attacks?

Obsolescence is another element to factor into the equation. At some point, you will need to replace or significantly upgrade your hardware and software.

3. Ongoing Maintenance: Reduce the Cost and Effort of Upgrading

ChiroTouch cloud-based solutions automatically include access to updates and new versions – you don’t need to pay anything extra when new features and enhancements are available. Updates are sent to your software automatically. That means you don’t have to take extra steps or time to configure workstations or download new application versions of software.

Although these costs are not as tangible as paying for a server, they can still impact your practice in lost time, extra steps, and additional costs to bring in an IT resource to help manage updates across multiple clinics. Reducing the cost and effort of upgrades contributes to lowering your TCO overall. As an added benefit, you can treat your investment as an operating expense rather than a capital expense.

4. Sofware Licensing: Minimize Start-Up Costs

How your software is licensed can have a huge impact on set up costs. When software is delivered as a cloud-based solution, you do not have to pay an initial lump sum payment upfront because you’re subscribing to the software instead of licensing it.

Any licensing fees or implementation costs are already included in your subscription fee. Plus, depending on which ChiroTouch cloud-based solution you choose, you could have anywhere from 30 to 90-days before you start paying your subscription fees, which saves on upfront setup costs.

Busting the Myths

Myth: It’s cheaper to buy than rent

Some industry influencers may argue that cloud software is no less expensive than purchased licenses despite these factors. The rent versus buy argument forms the basis of this position.

The facts:

Licensing software is very different from purchasing a house. For starters, you are not building equity in your software purchase. On the contrary, you’re gaining benefits by not owning the software – because you are not responsible for any customization and updating – that is done on a continuous improvement cycle and pushed to you without disruption.

Myth: Break-even ownership

When do you break even? Industry experts will note that a break-even ownership period starts around five to seven years after the initial purchase. In that time, you will have paid as much for purchasing a licensed server-based version as the cloud solution.

The facts:

On the face of it, this might be true. However, to get an accurate accounting, you must factor in the direct costs, including license fees, hardware, security software, and server software. In addition, indirect costs such as IT maintenance and support to install and manage your network, downtime when upgrades and updates are due, and purchasing surrounding software and hardware will be needed. For example, firewalls and security software are necessary to protect your system, practice, and patients from disruptive physical and cyber events.

Even after that break-even point, the costs of a server-based license continue. You still have the ongoing maintenance cost and the IT staff (or a qualified third party) needed to support and maintain it.