One decision you'll have to make early on is whether you'll host the software in-house or contract the task to an outside firm. If you do the job yourself, document management system suppliers refer to this as a client-server solution. If you contract the work, it's called an application service provider (ASP) solution.
Client-server
With a client-server solution, you run the software on your computer system and keep all the data on hard drives or network servers.
The main advantages are:
- complete control over your document management system
- flexibility with software customisation and current system integration
- maintaining sensitive data within your company
The disadvantages are:
- the need for highly skilled in-house IT staff
- initial expenditure on consultants and hardware to ensure the system works properly
- creating and updating a backup database
ASP
With an ASP solution, the software, your database, and the backup files are the responsibility of a third party. You have access to the system via an Internet connection.
The main advantage is maintenance of the system by IT experts who can provide state-of-the-art security and failsafe procedures such as extra servers and backup databases.
The most significant disadvantage is the possible failure of the Internet connection and your subsequent inability to access your documents. These failures generally don't happen often but they're not unknown.
Price differences
If you opt for a client-server solution, you'll have to bear a significant up-front cost for the software and the associated hardware such as servers. You'll also have to bear the cost of the consultants you'll probably need to assist your in-house staff, at least in the early stages of project development.
ASP solution providers will generally ask for a smaller initial fee followed by regular payments. This spreads your costs and enables you to have the use of first class software and hardware without upfront expenditure.
Pros and cons
You can easily address the disadvantages of a client-server solution if you ask your IT section to be involved with the project from the start, create backups using servers off-site, and have a large enough budget. This means that if you have a relatively small business, however, you may prefer to choose an ASP solution because you're in effect renting much of the necessary expertise, software and hardware and thereby keeping your costs as low as possible.
You'll also find that if you talk to ASP providers, they'll argue they can match the advantages of a client-server solution. By offering you a contact point, they can respond promptly to requested changes and act as your consultants. By employing sophisticated software, they can also guarantee the security of your data, no matter how sensitive it is.
Your decision often boils down to one main concern: are you willing to risk losing time if the Internet connection with the ASP provider fails, or are you prepared to take the chance of your internal server crashing and causing delays?
Some businesses answer this dilemma by contracting their document management software to an ASP and then changing to a client-server solution when they're confident in their ability to handle it. If you favour this approach, ask the ASP provider about the process of switching solutions.
