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Robert Frances Group Releases Report on Faxing in the Enterprise
In-depth analyst report estimates the cost of a hosted fax service to be roughly one-third to one-half the total cost of ownership of fax servers.

Ottawa, September 12, 2007 - As enterprise IT managers and CIOs continue to be pressed to do more with less, using a hosted fax service can deliver a total cost of ownership that is roughly one-third to one-half the total cost of ownership of fax servers. That's the conclusion reached in a new white paper released today by analyst firm the Robert Frances Group (RFG).

The 14-page report Analyzing Total Cost of Ownership for Internal v. Hosted Fax Services provides an in-depth look at the ongoing and hidden costs of using stand-alone fax machines or fax server technology in the enterprise, and how those costs can be reduced by moving to a hosted fax service.

"One of the key findings RFG has discovered is that owning and managing fax servers usually has many hidden costs," said Jerald Murphy, senior vice president and director of research with the Robert Frances Group. "These costs can include higher installation and deployment costs, integration costs, and overspending on excess capacity, networking/telephony and maintenance costs. They also add to IT's burden by creating another complex system that needs to be managed."

Murphy went on to state that hosted fax services "offer the same benefits (over stand-alone fax machines) as fax servers, along with improved mobility, significantly reduced downtime, scalability, and better security. In addition, because the infrastructure is outsourced there are no hidden maintenance, capital and operating costs."

The white paper provides a detailed analysis of both capital and operational costs involved with a fax server. Annual capital costs include software, hardware, design, and deployment costs, which in a typical enterprise sending 10,000 faxes per day are estimated at $6,930.

Even more eye-opening are the operational costs of fax servers. With software maintenance, networking maintenance, phone charges, and the cost of personnel to manage them, the total annual burden is an estimated $147,980, assuming all faxing is done from a central location. In an enterprise with 50,000 users in multiple locations, costs can escalate as high as $1,019,000 annually. RFG estimates the cost of a hosted fax service to be roughly one-third to one-half the total cost of ownership of fax servers.

One of the features of the white paper is an extensive analysis of the requirements for enterprise fax solutions. This section looks at factors such as availability and accountability, cost efficiency, scalability, and security that have to be taken into account when evaluating which fax solution best fits the enterprise. Enterprises that fall under legislation such as Sarbanes-Oxley and the Health Insurance Portability and Accountability Act (HIPAA) have to meet additional requirements in order to comply with those laws - a point Murphy says organizations often overlook.

"While there may be some sense of direct control by building a fax infrastructure internally, RFG has found that there are usually more costs and less control than executives would like to admit," Murphy said. "Internet fax services offer well-defined, easy to calculate costs, with none of the infrastructure planning or costs associated with building a dedicated fax environment. Typical operational savings should run from 49 to 64 percent of the costs of building and running service internally. At the same time the hidden costs are not incurred, security is improved, control is established, and documents are better managed with increased security."

Analyzing Total Cost of Ownership for Internal v. Hosted Fax Services is currently available for free download on the MyFax Web site

About MyFax
MyFax is the fastest growing Internet fax service used by individuals, small, medium and large businesses to send and receive faxes using existing email accounts or the web. MyFax offers services in North America and Europe, including the United Kingdom to industries recognized among the fastest growing adopters of internet fax including finance, insurance, real estate, healthcare, transportation and government. More than 10,000 new customers subscribe to MyFax each month. Additional information is available at and
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