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July 24, 2024
Facilitating digital collaboration and creating a cohesive work environment is the backbone of a company intranet, offering a centralized platform that not only streamlines operations but also revolutionizes how businesses communicate with their employees. When it comes to implementing a company intranet platform, understanding the associated costs can be a perplexing task. The cost for an intranet is typically comprised of the intranet software expenses, implementation expenses, and migration expenses (if applicable).
In this blog post, we dig into the software pricing model for most intranets. In particular, we’ll share estimates around how much it costs to set up an intranet system and we will provide an overview and details of the user price model, which serves as the standard pricing approach for intranets. By exploring this model, we will provide valuable insights into how user counts influence pricing and help you gain a clearer understanding of the cost considerations associated with implementing a modern intranet for your organization.
For small businesses (under 250 employees), expect to invest $15,000 to $30,000 annually, covering software, implementation, and basic features. Mid-sized companies (250-1000 employees) might budget $30,000 to $100,000 per year. Large enterprises (over 1000 employees) could see costs ranging from $100,000 to $500,000+ annually, depending on complexity and customization.
These estimates include software licensing, implementation, and potential migration expenses. Cost-saving alternatives like pre-configured packages can significantly reduce these figures, potentially starting as low as $1,500 per year for small businesses.
To fully understand intranet costs, let's break down the typical expenses involved in onboarding a new intranet software solution:
By understanding these components, you'll be better equipped to budget for your intranet project and make informed decisions about your digital workplace strategy.
Below, we provide a detailed breakdown of intranet pricing for vendors using the user price model, helping you estimate potential costs.
The user price model is the typical pricing structure for community-based modern intranets specializing in employee or internal company use. It’s based on the number of users or employees who will be utilizing the intranet platform.
Under this model, the intranet software provider charges a flat rate per employee who accesses the intranet. This pricing model works well because these communities have fairly consistent use as employees work and access their company intranet daily.
Typically, the number of employees (also known as "seats") is built into a contract. A 3- year Saas (cloud) contract is the norm for the industry.
A 1-year contract is frequently available, but typically at a premium price of 20-30% higher due to the shorter contract commitment than the industry standard of 3-years.
Seats are usually priced in increments of 50-100, and there are minimum seat requirements also. The minimums are typically a few hundred because the software vendor's profitability margins are very thin for these small clients. A small client will often still have similar sales investment and support as a more significant, profitable client.
Your contract will also allow you to purchase additional seats to address the potential future growth of your employees.
Many intranet software vendors have a confidential tiering system that groups seat counts into ranges of a few thousand seats. The cost per seat gets lower as the seat tier increases.
Our partnership agreements do not allow us to go into specific details. Still, you generally pay between $2 - $10 per user monthly. To receive the lowest cost range of about $2-$4 per user per month, you need a total employee base of 5,000 to as high as 50,000 to get the best rates.
For lower employee counts in the hundreds or even a couple of thousand, you're looking at between $4-$10 per user, per month, depending on the actual count and platform.
While custom intranet solutions can be expensive, pre-configured intranet packages can offer significant cost savings and simplify the onboarding process.
For example, our Microsoft Teams and SharePoint Intranet Package is designed to leverage your existing Microsoft ecosystem, potentially reducing both software and implementation costs.
Our Microsoft Intranet package also includes pre-built intranet add-ons, widgets and integrations for Microsoft Teams and SharePoint to get your intranet up and running more quickly, such as:
By choosing an intranet package solution, you can often get a fully-functional intranet up and running more quickly and at a fraction of the cost of a completely custom solution. This approach can be particularly beneficial for small to medium-sized businesses or organizations looking to rapidly deploy an intranet without extensive IT resources.
For instance, our Microsoft Intranet package starts at just $1,500 per year for up to 250 users, making it an affordable option for businesses of various sizes. Always consider such packaged solutions when evaluating your intranet options, as they can offer a balance of functionality, cost-effectiveness, and ease of implementation.
We specialize in top community platforms, like Igloo, LumApps, Simpplr, Unily and Microsoft SharePoint, designed for large and complex companies on a global scale. However, these software vendors also cater to the needs of small and medium-sized companies who are seeking top-tier platforms.
It's important to note that there are many intranet vendors and software options available in the market that cater to smaller companies looking for quick setup, basic functionality, and low-cost solutions without long-term commitments. While these companies fall outside the scope of our expertise and services, they may be suitable for those specific requirements.
If you're ready to take the next step and create an intranet tailored to your organization, we are here to help. With our expertise in community, we can guide you through the process of setting up an intranet, from choosing the right intranet vendor, to understanding intranet costs to implementing an intranet solution that fits your requirements.
Contact us today to explore how Social Edge Consulting can empower your organization with a modern intranet that drives productivity, boosts collaboration, and fosters a cohesive work environment. Let's work together to make your intranet vision a reality!
