What Affects The Cost Of A Document Management System?

2022-10-21 15:28:08

Document digitisation is a multibillion-dollar industry. In 2020, the global market was valued at $2.8 billion, and experts project that this value should increase to more than $5.8 billion by 2028.

With so many documents going digital these days, the need for document management systems has never been more critical. Yet, many businesses do not invest in document management software due to the perceived high cost.

In this guide, we offer help to understand the factors that affect the cost of a document management system. We will also examine how to lower the total cost of ownership.

Ready to learn more about document management solutions for your business? Then let's start with a quick breakdown of a document management system and its main features.

What Is a Document Management System?

Remember when businesses used to store important documents in filing cabinets and warehouses? Times have changed. And what's more, today, companies prefer electronic document storage.

A document management system (DMS) is a piece of document storage software. It helps individuals and businesses track and manage electronic data, including images and documents.

Your business may already have a document management system, though it might not be an existing software system. Document management systems can include any means you store and manage your electronic data.

 

What Are the Main Features of a DMS?

DMSs enable the storage, tracking, and management of a business' electronic documentation, and they all typically share the following features:

  • A storage interface where documents can be organised and accessed
  • Document version control
  • Editing locks to avoid overwriting changes
  • Document version roll-backs
  • Audit trail functionality
  • Stamps and
  • Annotation functionality.

By now, you may think that a DMS sounds like Google Drive. You would be correct because Google Drive is a very pared-down version of document management software.

However, there are essential differences between Google Drive and a DMS. Mainly, DMSs have far more comprehensive solutions for businesses.

 

How Much Do Document Management Solutions Cost?

A DMS can cost anywhere from R799 per month. The total cost depends on the requirement of your organisation. Most DMS providers charge a monthly fee; however, there is also the option of a once-off payment for solutions.

The latter is an excellent option for enterprise businesses and large corporations. In contrast, SMBs can benefit from subscription-based DMSs because they can pay for what they need and increase their subscription package as the business grows.

 

Factors Affecting the Document Management System Price

You may wonder why the range of document management solutions prices is so broad. The answer is that the exact cost of a DMS depends on a few factors that include but are not limited to the following:

1) The Amount of Storage You Need

How many files does your business need to store? DMS providers typically charge on a per-gigabyte basis, meaning that the more files you need to keep, track, and manage, the more expensive your system will be.

Over time, your document management needs may grow, and you can increase your contracted package accordingly. Alternatively, you may invest in an on-premise solution that will only cost one upfront lump sum and nothing after that.

2) The Number of Users You Have

Do you have a dedicated document management person? Do you have an entire document management department? Or will multiple divisions across your entire organisation need access to the DMS?

Many DMS providers charge by user or seat instead of storage capacity. In those cases, you would have to pay an additional charge for each user added to the system, and in larger organisations, those costs can add up quickly.

3) The Features You Need to Access

Is your business looking for a fully-automated document management solution? Or would a primary product without all the bells and whistles suit your needs just fine?

You should know the answers to these questions because the features you need in your DMS will determine the ultimate cost. Features like automated document sorting or secure encryption will cost you more.

4) IT Setup Needs

Do you have an IT team? If so, what size implementation can they handle? Your answer to these questions will determine whether you'll need to pay for consultation and setup.

The exact cost of your system and its installation and implementation will depend on the DMS you choose.

5) Ongoing Maintenance Needs

If your business does not have an in-house IT team, you will also need to consider the cost of ongoing support and maintenance services. Unfortunately, most software systems do not update themselves automatically; even when they do, this feature comes at a cost to you. Alternatively, providers can charge for your software system's ongoing support, but certain DMS providers provide this support as standard and include it in your monthly subscription.

 

Daisy's Electronic Document Management for Your Business

A document management system will be a necessary expense for businesses in 2022 and beyond. The total cost you will pay for your solution will depend on factors like how much storage you need, how many users you have, and whether or not you have an in-house IT department.

If you've been searching for a document management solution for your business, you can stop your search now because Daisy tailor-makes business software solutions for your unique needs.

Please fill out this form today to receive a callback from our business software solutions team!