The average small business will spend $74,640 or more annually managing their own in-house internet operations. Outsourcing to Application X is can save tens of thousands of dollars each year. To prove our point, we created a shopping list of items that are minimal requirements for hosting your own internet services in-house. Don't forget that this equipment isn't delivered free, so our first table outlines the start-up costs associated with in-sourcing. Add these to your annual recurring costs for a whopping total of $118,555 for your first year. Application X saves you over $115,000 in your first year alone.

• Startup Costs
• Monthly Recurring Costs
• First and Second Year Savings Comparisons

Startup Costs

	In-House	Outsourced
Mail Server - Dell PowerEdge 350	$2,140	Included
Web Server - Dell PowerEdge 350	$2,140	Included
Primary DNS Server - Dell PowerEdge 350	$2,140	Included
Secondary DNS Server - Dell PowerEdge 350	$2,140	Included
Backup Device - Dell PowerVault 110T LTO Internal Tape Backup with controller card for PowerEdge 2500	$3,399.00	Included
Backup Server - Dell PowerEdge 2650	$1,699	Included
Firewall Appliance - Watchguard Technologies Firebox 700 Firewall and VPN	$1,999.00	Included
Router - Cisco 2620	$1,677.49	Included
CSU/DSU - ADTRAN TSU LT T1-FT1 DSU/CSU	$649.49	Included
Switch - Cisco Catalyst 2950 24-port Switch	$799.00	Included
Cabinet - NetShelter vx 42u	$ 1168	Included
Operating System (Windows 2000) x 5	$4,284.85	Included
Mail Server Software (IMail Server by IPSwitch - Unlimited Users with Service Agreement)	$2,540	Included
Backup Software - VERITAS Backup Exec 9.0 for Windows Servers	$489.84	Included
AntiVirus Software - Symantec AntiVirus Small Business Ed V8.0 5-pack x 5	$1,149.6	Included
Configuration - 3 weeks @ $75/hr	$9,000	n/a
Data Center Expansion & Configuration (Power, Cooling, etc)	$5,000	n/a
Internet Connection Installation (T-1 or better)	$1,500	Included
Conservative Startup Total:	$43,915	Free Startup

Monthly Recurring Costs

	In-House	Outsourced
Electricity (10 devices plus air-conditioning)	$120	Included
Internet Connection	$700	Included
24x7 Coverage (3 employees @ $15/hr)	$5400	Included
Leased Server Cost	$0	$200
Conservative Monthly Total:	$6,220	$200

First and Second Year Savings Comparisons

Time Period	In-House	Outsourced
First Year Comparison	$118, 555	$2400
Second Year Comparison	$74,640	$2400

To summarize, hosting with Application X saves you tens of thousands of dollars per year.