When comparing on-premise software like Worldox to a pure cloud-based program like NetDocuments, The on-premise software often will look cheaper. On-Premise software like Worldox has a high one-time cost and a nominal yearly support cost. NetDocuments is sold as Software as a Service (SaaS), meaning you have a subscription for it.
Starting in 2002, I set up Exchange and Small Business servers for Law Firms. In 2004 I became a Worldox Consultant that set up and supported Worldox for around 30 firms. In 2010, I got out of the server business, and in 2016 I did my last Worldox install. Since 2010 I have set up NetDocuments for 294 Law Firms and counting in the United States and Canada.
Since I have been out of the IT Services and Worldox game for a bit, I decided to run the numbers by someone who is the IT Director of an 80-person law firm in New Orleans that is running Worldox.
I made the following assumptions to create an accurate quote:
- The Law Firm has 500 Gigabytes of Storage
- There are 30 total users
- The Law Firm uses a Managed Service Provider and not Break Fix.
- All the Equipment exists onsite and not in a data center.
Depending on these variables, your costs might be more or less.
To run Worldox, you will need two machines, the Worldox Indexer and the Server where the documents are stored.
The Worldox Indexer
The Worldox Indexer should be a powerful machine but does not need to be a server. A powerful Windows 11 Desktop will do.
- Worldox Indexer Machine Cost = $2000
- MSP Cost to setup Machine = $500
- MSP Cost to Support = $50 a month or $600 a year.
The Document Storage \ Worldox Application Server
The Document Storage \ Worldox Application Server is where all the documents reside. It’s also where the Worldox Program resides. We probably need multiple hard drives set up in a Raid Array for redundancy purposes.
- Worldox Document Storage Machine = $4,000
- MSP Cost to Setup Machine = $1500
- MSP Cost to Support = $250 a month or $3000 a year
The Cost for Worldox Technical Support and updates to new versions of Worldox is bundled together at a yearly cost per user.
- Worldox Annual Support $110 a User for 30 Users= $3300 a year
With Worldox running locally at your office, you are responsible for backing up your data. NetDocuments provides peace of mind with their triple redundant data centers located in the United States. This means you don’t need to worry about backing up your data if running NetDocuments.
- 500 Gigabyte at $1*a Gigabyte = $500 per month or $6000 a year
Listen to my Podcast with Ernie, the Attorney, about backing up your Law Firm’s Data.
Not Included in these numbers
- Power Costs to run the server and indexer at your office.
- Antivirus software for the Worldox Document Server.
- Worldox Web\Terminal Server, which gives you the ability to use Worldox Outside of the office.
- The $15,000 it would cost to buy Worldox for 30 Users.
- Set up costs for Worldox. Those would probably be close to the setup cost for NetDocuments.
Total Backup and IT Costs
Total Cost of Backup Per Year = $6,000
Total MSP Cost for Support Per Year = $3,600
Worldox Maintenance = $3,300
Total Firm Cost Per Year = $12,900.00
Total Cost a user a year = $430
Total Cost a user a month = $36
Total Hardware and Set Up Costs
I am going with the assumption that you will replace your Equipment every three years.
Total Cost of Equipment = $6000
Total Cost of Setup = $2000
I am going to split that Cost over three years
Total Firm Cost Per Year = $,2667
Total Cost a user a year = $89
Total Cost a user a month = $8
The Total Cost to Run Worldox on Premise is $44 a User a Month
$44 a user a month to run Worldox. That doesn’t include the following:
- The $15,000 it would cost in Worldox Licensing.
- The ability to use Worldox remotely, including smartphones, macs, and home computers.
- The integration with DocuSign
- The ability to send secure links to your client
- Seamless integration with multiple offices.
- Protection from the Ransomware
To make an apples-to-apples comparison of on-premise and cloud-based software, include the costs associated with running the software on-premise. You can accurately weigh the benefits and drawbacks of both options and make the best decision for your business.