This is the third video, in a series of why we believe the future of trucking TMS systems, lie in the cloud. Where trucking companies can have, unprecedented connectivity and mobility. We are calling it the road to transformation. And this is literally the road to transformation for your company, across all aspects of the business. From the office administration and dispatching to driver communication and billing. This is how we get you there faster, and with ease.
Hi, my name is Chuck Melton, president and owner of Melton Technologies. And today I want to specifically talk to those small to midsize fleets, who feel their competitors may have an advantage in technology. Are you afraid to be competitive can mean a six figure investment?
Today I'm going to talk about how that's absolutely not the case anymore. And how you can leapfrog the competitors with little to no risk. And therein lies the beauty of what I'm going to tell you. Are you one of those owners or fleet operations managers who envies your competitors high price IT system? Do you feel like you're at a competitive disadvantage?
We all know there are some six bigger TMS systems out there that do some very powerful things. But you know your company can... could have a hard time justifying that cost to implement. There's a concept when acquiring technology known as leapfrogging. That's when a company that's been a generation behind in its information technology, upgrades the current technology, and is now a generation ahead of their competitors. What makes this particularly advantageous for those companies moving to the cloud, is not only, can they leapfrog their competitors Information Systems, they can do it for a fraction of the costs, more return, less money, better quality, less financial risk. So you might say Chuck, how does that work?
I'll have you explain. For most of the life of this business, we provided on premises software. In this scenario the initial software license range from 30,000 to 75,000 depending on the size of the company. And that was accompanied by an annual licensing and support fee. But that was just for our software. Then there was the cost of the server and all the networking software, plus a resource either contracted or internal to manage the hardware and the server, then you had the potential hidden costs of hardware software conflicts. Everyone who's had the experience when a problem emerges, especially in days passed, or the hardware people blame the software, and the software people blame the hardware.
So not only does a cloud environment give you this huge advantage of connectivity and mobility, that we believe is required in 2020, It takes away a truckload of management headaches to maintain your TMS, at minimal financial risk, license fees, hardware costs, ongoing support, and upgrades, are all rolled into a monthly fee, that allows you to exit anytime. So the fear that you're going to invest $100,000, for something that may not help you has been eliminated.
As 2020 has become maybe the most unusual year that I can remember. It is my view that a cloud environment makes sense for so many reasons. It gives you connectivity and mobility that is required in an uncertain environment. For transparency, visibility and communication it is absolutely the best technology. More importantly, financially it provides the greatest return for the least risk. It has a sound financial decision.
Just one more reason why it's time to move to the cloud and start down that road to transformation. As always, thank you for watching and happy trucking.