How to Determine the Cost of Cloud-Based Document Management Services?

When looking for cloud based document management for small business or even for larger companies, price is always an essential consideration.

Even though cloud solutions have become more prevalent, finding providers that can meet your demands and budget while also providing the necessary security features isn’t easy.

But how can you find the right balance of pricing vs. reliability for cloud-based document management? And what are the most important considerations?

Let’s explore these and other important questions below.

What is Document Management Software?

As the name implies, document management software (or DMS for short) is a solution for managing, tracking, and securely storing your documents.

For businesses that deal with a lot of documents every day, having such a solution can be a real game-changer.

That’s especially true for companies that are still relying on paper document storage solutions. Using document imaging solutions to digitize your documents alone can drastically cut expenses, save time, and make processes more efficient.

When you add a comprehensive and modern content management system, the boost in productivity and security multiplies even more.

Your employees can find and retrieve documents instantly, all activity gets tracked and monitored, and multiple versions of the same document can be edited simultaneously, as per your company’s needs.

As you probably already know, dealing with thousands of documents is not an easy task. Therefore, DMS solutions are a natural next step in how companies can take control over their processes and put their employees in a position to succeed.

Cloud-Based Document Management Software Pricing Models

The most popular pricing model cloud-based document management system solutions is a subscription-based system. That means companies pay a monthly fee for every user and use the software for as long as they needed, with the option of canceling the subscription at any time.

The reason for the flexible pricing model is that since the DMS is hosted on the cloud, the setup fees are virtually non-existent; after the documents are uploaded, the employees can start using the software immediately, which is a huge benefit at a time when onboarding needs to be as simple as possible.

Meanwhile, legacy on-site document management systems usually have more rigid licensing fees, licensing out the technology behind the service for a fixed upfront fee.

But then, companies have to figure out all the technical details of running such a system, which can be a big hassle.

They need to have a robust and secure server infrastructure, which could host the data and maintain the software, which includes dealing with any issues, bugs, or security threats.

As you can probably see yourself, there’s a reason why cloud-based DMS is considered to be the choice of the future.

Even though some companies are still not at the stage where they would be willing to embrace the technology, it offers too many benefits to be ignored, especially for smaller companies that don’t want to deal with the technical details and just want a plug-and-play solution they can start using from day one.

How Much Does a Cloud-Based Document Management Service Cost?

Now that we’ve looked at the typical pricing models for DMS, we need to figure out the costs of cloud-based document management for small business.

When looking into the pricing, it’s essential to understand that since there is more than one provider, the price will vary as well. Some providers offer unique features tailored to specific industries, which might warrant a higher price in some situations.

The pricing can range anywhere from $20 to $50 or even more per month per user, which may seem like a lot, but if you have very specific needs, that price might be worth paying.

Compared to on-premise solutions, this is actually a bargain.

For legacy systems, you can pay hundreds of dollars per user, thousands for the server infrastructure, and much more on maintenance, an IT team, and other expenses related to running everything on your own.

When determining whether a particular cost is worth it to you, the best approach is to look at the features that the DMS can offer and how much it would be worth for your business.

For instance, modern cloud DMS should offer a convenient and seamless content management system, allowing users to quickly collaborate on projects and share docs.

It should also be able to automate various workflows, especially of mundane and repetitive tasks, freeing up the time of your employees and allowing them to focus on more analytical tasks that are more profitable for your business.

A good DMS solution should also help with HR management, tracking each employee’s lifecycle and making it easier to retrieve and analyze records.

Other vital features include AP automation, education management, and even the management of contracts, so look into how much they are relevant in your situation.

If you want to employ a more data-driven approach in your decision making, look for a solution that offers real-time insights and analytics, as well as integrates with various 3rd party solutions that you might already be using.

When you consider all of these features, the price of a comprehensive document management services provider suddenly doesn’t seem so high—not just compared with on-premise alternatives but also as a standalone business investment.

Considering the time it can free up for your employees, the processes it can streamline, and the valuable data it can provide, having a document management solution is not just a convenience; it’s an essential tool for keeping up with the competition.

And if you’re still running your business using paper document storage, you will probably find that the switch to a paperless office run on a powerful DMS solution can skyrocket your business to new heights.

You’re probably not even aware of how much more your employees could accomplish each day if they had the right tools. And with document imaging solutions becoming more affordable as well, even small businesses can allow themselves the opportunity to take full advantage of what today’s technology can offer.

Author Bio:

Brandon Harris is the vice president of Smooth Solutions founded by his father Michael Harris, who has been a pioneer in the document scanning industry for over 35 years. A leading Document Scanning Company in Lodi, N.J., they are experts in providing bulk document digitisation services, document management software, workflow management software, affordable book scanning services, ecm software and Convert Microfilm to Digital. They scan paper files, large format drawings, digitize books, convert microfilm to digital, etc. Prior to that, Brandon owned and operated a small bakery. Other than working to grow and improve his business, he enjoys spending time with his wife, daughter, and family.