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Study: SharePoint Costs High Due to Inadequate Skills

The use of Microsoft SharePoint is growing, but maintenance costs can be high especially given the lack of trained personnel, according to an industry study.

The average cost to manage SharePoint is $46 per user per month, according to a "State of the Market" study by Osterman Research, which surveyed "more than 120 IT executives, managers, and staffers at mid-to-large enterprises." The study, conducted via an August survey, was commissioned by Seattle-based Azaleos Corp., a provider of management services for e-mail, collaboration and unified communications, based mostly on the Microsoft stack.

Osterman found a similar average management cost for SharePoint of $45 per user per month in a February 2009 survey, which also was commissioned by Azaleos.

So, while SharePoint adoption grows, the management costs are not decreasing, the study concluded. By contrast, Microsoft Exchange management costs were found to be much lower, at around $15 to $25 per user per month.

The respondents in the survey mostly used SharePoint 2007 (59 percent), followed by SharePoint 2010 (37 percent) and Windows SharePoint Services/SharePoint Foundation Services (18 percent). Some (25 percent) were migrating to SharePoint 2010. Just eight percent of participants used Microsoft's SharePoint Online services.

Downtime while using SharePoint was common problem, as cited by the study's respondents.

"More than 80% of organizations experienced unplanned downtime multiple times during the past 12 months, with the majority of these experiencing up to five separate outages," according to the study. It took an average of 30 minutes or less to restore service, study participants said.

The downtime mostly stemmed from hardware errors or mistakes made by IT team members. Those problems caused average monthly management costs for SharePoint to double to around $90 per user per month. Almost half (43 percent) of study respondents pointed to "a lack of administrator skills, training, and knowledge as an inhibitor to efficiently leveraging SharePoint."

SharePoint has continued to grow more complex with newer versions, noted Scott Gode, vice president of product management and marketing at Azaleos. And it's been harder to find skilled administrators that know the technology. However, SharePoint is also growing across organizations, which can add to the complexity.

"There is an additional ongoing amount of migration and adoption of SharePoint by customers who [became] not just departmental customers but enterprise-wide customers," Gode said in a phone interview. "That, by its very nature, made things more complex because you couldn't just look at things in a vacuum anymore for the department. It had to be spread across the company in a mission critical kind of way."

He also noted that SharePoint is a different kind of animal to manage compared with Microsoft Exchange.

"SharePoint is a set of great tools, but at its core, it's a blank slate for any number of applications," Gode said. "With SharePoint, there are no known set of scenarios because you can design anything into it. So there has to be a lot more flexibility and creativity in the way that those administrators are trained and gain experience through their work career."

Azaleos, as it happens, has its own remote monitoring solution, called "AzaleosX," that delivers uptime and maintenance support for private cloud and on-premises deployments of SharePoint, while customers retain control over their servers and data. That kind of support can reduce an organization's costs in recruiting, training and retaining a SharePoint workforce that is increasingly hard to find, Gode said.

For the few organizations that are tapping into the public cloud, such as Microsoft's Office 365, Azaleos can support hybrid configurations. Microsoft won't let Azaleos tap its public cloud on behalf of a customer.

SharePoint is being used for various applications. The top use, according to 72 percent in the survey, was "managing Intranet and Web site content, along with document management and control." That figure is down from 85 percent cited in the 2009 survey. Other important uses include corporate Internet portal (63 percent), workflow management (59 percent), business intelligence (52 percent), file storage (51 percent), search (48 percent) and social media (25 percent).

About the Author

Kurt Mackie is online news editor for the 1105 Enterprise Computing Group.

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Fri, Sep 30, 2011 David Sunnyvale, CA

SharePoint is one of the best enterprise content management systems around. I can create a customer portal in around 5 min, then spend around 2 hours customizing it. Now with Office 365 anyone can have SharePoint. Its also great someone elses handles the hardware side. Now I can just use it trouble free. I'm sure Microsoft's downtime will be less then my current employer. I also love all the free training out there. Wow. You can watch webcast on about every possible subject within the SharePoint domain. Here are a few sites: http://events.microsoft.com/Pages/Home.aspx, http://msdn.microsoft.com/en-us/office/aa940989.aspx.

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