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David Greenfield

SharePoint Statistics: The Real Reason Behind SharePoint's Price Tag

By | October 14, 2009, 4:44pm PDT

Summary: What would you say is the most expensive part of a SharePoint deployment? A recent study by InfoTrends, a consultancy, identified where the money is being spent on SharePoint and where it’s not. The results may surprise you. So I was speaking the other day with Omri Duek, a consultant for InfoTrend. He knows a lot [...]

What would you say is the most expensive part of a SharePoint deployment? A recent study by InfoTrends, a consultancy, identified where the money is being spent on SharePoint and where it’s not. The results may surprise you.

So I was speaking the other day with Omri Duek, a consultant for InfoTrend. He knows a lot about a lot of things, but the thing he knows really well is SharePoint. No surprise there, I suppose. Duek is  the author of the report “Gathering MOSS? Revealing SharePoint Opportunities and Costs” by InfoTrends, Inc. He shared a number of statistics with me about SharePoint usage, Pretty eye-popping, if you ask me.

Of 1,680 IT and end-users they surveyed, over a third indicated that their organization used SharePoint 2007 today; over half of the largest companies (10,000+ employees) indicated SharePoint 2007 use. These rates beat ALL of the other document and content platforms listed – EMC, IBM, Open Text, Oracle, Hyland, et al. A few more numbers to mull over:

  • (N=367) On average, SharePoint is available to approximately two-thirds of organizations (that have it) but only used by approximately 40% with access.
  • Approx. two-thirds of active users (N=270) were interacting with the platform AT LEAST 1-2x per day.
  • (N=386) On average, 24.7% of SharePoint sites are currently inactive or not in regular use. The largest companies are creating over 100 new sites per month, on average, and already have over 400 sites to manage.
  • SharePoint use varies substantially across and within company size segments (often based on existing investments or policies), but virtually ALL of our follow-up phone interviews indicated basic collaboration and document management as the primary use. The phrases “e-mail replacement” or “shared drive replacement” came up often during these calls. Where more advanced workflows or WCM were used, they were underwhelming.

  • (N=367) SharePoint Server licenses and user CALs represent only about 1/3 of deployment costs – other major costs were servers and storage, deployment/assessment services, development/maintenance services, i/o hardware (e.g. scanners, MFPs), and additional software.
  • (N=386) Top 2 investment priorities moving forward, which are indicative of SharePoint’s relative immaturity today:
    • Extending capabilities to additional departments or divisions - 44.6%
    • Establishing a strategy for SharePoint – 40.9%

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Topics

David Greenfield is the principal in STAnalytics. a global technology-marketing consultancy where he advises enterprises on emerging technologies. He primarily functions as the product marketing manager at Silver Peak Systems.

Disclosure

Dave Greenfield

Much to the chagrin of his clients (and his wife), David Greenfield remains an independent thinker to a fault. Little wonder he's strongly considering an investment in the Trojan body armor. His firm, Strategic Technology Analytics (STAnalytics) provides independent content, insight and analysis to many companies. Current and past customers of his that may or may not be covered in the TeamThink blog include: Audiocodes, Infoblox, Objet Geometries, On-State Communications, Phone.com, Silver Peak Systems, Skype, and Spigit. He currently holds stock options in Silver Peak Systems.

Biography

Dave Greenfield

David Greenfield is the principal in STAnalytics. a global technology-marketing consultancy where he advises enterprises on emerging technologies. He has spent the past 20 years analyzing virtually every area of networking technology. His work has appeared in leading technology publication such as PC Magazine, Network Computing, IT Architect, and Data Communications in the past 10 years focused on real-time social software. He has consulted to and assisted Fortune 500 enterprises in their technology acquisitions. He was the editor and a blogger Network Computing and today works as the product marketing manager at Silver Peak Systems.

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RE: SharePoint Statistics: The Real Reason Behind SharePoint's Price Tag
Nick Kharchenko 26th Oct 2009
MAPILab provides a very good SharePoint usage reporting
solution: MAPILab Statistics for SharePoint.
http://www.mapilab.com/sharepoint/statistics/ Detailed
reports on visitors, documents, lists, search and others
can help you to understand how your SharePoint farm is
used.
0 Votes
+ -
Governance and Training
crazydanr@... Updated - 14th Oct 2009
From my experience, the technology is not expensive, when compared to most DMS / ECM / portal solutions. The costs come later, further down the road, when mistakes have already been made and the reputation of the solution is allready marred.

It's almost too easy to get a SharePoint farm up and running. There's not nearly enough governance, design, or training going into most implementations. The system is put into place before the challenges are clearly defined and the capabilities and limitations are understood.

The SharePoint 2009 conference is next week, a sold out show of over 7,000 attendees. It's supposed to preview the next version which is slated to have major changes such as Visio services, improved workflow, and a much improved and renamed BDC. I'm surprised and a little disappointed that Google Wave and the raging OS debate have been given more coverage than an event centered on software that 1/3 of companies are using.
Widely procured, used in a rudimentary way, expensive to
maintain, unloved by end users. Is that a fair summary?
Trash talking does not help, instead we should focus on the issue currently being faced by people implementing such collaboration tools.
I'm part of the Master of Software Engineering program in Carnegie Mellon and SharePoint has always been a favorite for students looking for collaboration tools around their projects. This year ALL teams have chosen to use sharepoint as part of their document/task/calendar platforms.
As a consultant I have helped three companies set up sharepoint internally and it has always been received with open arms. If done poorly, without thinking about what you want to accomplish by it and how you are going to manage it in the long run, of course it will be a failure.
0 Votes
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Contributr
Well said Raul
Dave Greenfield 15th Oct 2009
Do you have a minute to chat? I'm developing a story around SharePoint deployment challenges. I'd be interested in picking your brains for a bit.

Drop me a line,
Dave
dave@stanalytics.com
MAPILab provides a very good SharePoint usage reporting
solution: MAPILab Statistics for SharePoint. http://www.mapilab.com/sharepoint/statistics/

Detailed reports on visitors, documents, lists, search
and others can help you to understand how your SharePoint
farm is used.

MAPILab provides a very good SharePoint usage reporting
solution: MAPILab Statistics for SharePoint.
http://www.mapilab.com/sharepoint/statistics/ Detailed
reports on visitors, documents, lists, search and others
can help you to understand how your SharePoint farm is
used.

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