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The Hidden Costs of Buying Software


It happens far too often that soon after making a major software purchase for the school, administrators become dismayed as they begin to discover so many additional costs and burdens not planned for at the time of the initial decision to purchase the product. Careful analysis reveals the purchase price often represents only a small portion of the total cost of implementing a new system, or what is called the “total cost of ownership” (TCO).

So, it is critical, before making your purchase decision, that your organization is able to determine, at least roughly, what the real costs of the software implementation will be.

At least three areas should be given adequate attention: (1) Initial purchase price – or first year subscription price, (2) Transition costs, and (3) Continuing maintenance and support costs. Only then will you see exactly how much your decision will cost your school community in the short run as well as year after year.

The Purchase Price of the System

As stated above, the purchase price of a new software package often ends up representing only a small part of the cost to implement a new software system. You should also be aware of any additional investments you will need to make to take full advantage of the new application.

In particular, you should ask: Will the new software run acceptably on your current hardware? Or, will you need to purchase and install more memory, another hard drive, a new server, another computer (or even new computers for all), etc. Do you need to purchase a new printer to meet the demand for high volume printing, printing with better quality or printing in duplex?

The Cost of Transitioning to the New System

Adapting to any new system takes time. You’ll need to make room in your budget for training. Remember, skills, procedures and perhaps even minor philosophical changes must be carefully considered and adapted. Staff productivity may actually drop at first as users become familiar with the capabilities and nuances of the application.

You will also probably have to allocate time and personnel to transfer data from a preexisting system into the new system. It may be hard to quantify some of these costs but you must factor in any additional work on the part of your staff.

The Cost of Maintaining the System

Very few systems, hardware or software, can be installed and then ignored. You should be clear about what recurring expenses the use of the new software will involve. Do annual subscription fees apply? Are the rates locked-in or can the vendor raise them at will? How much will it cost for customer support? What level of support does your fee pay for? What will it take to train new staff members to use the software?

RVS Offers the Best TCO Value!

Shop around and compare the performance, simplicity and affordability of RVS products and services with any school software alternative. You will not find a better deal for easy-to-use school software that simplifies your life and extends your budget.

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