ERP System Price: How Much Does ERP Software Cost? скачать в хорошем качестве

ERP System Price: How Much Does ERP Software Cost?

ERP system price is complex to understand, with several variables impacting not only your costs but the outcome of your project. There are several options available. And often it’s hard to compare them, making it hard for you to determine the true ERP software cost of ownership. Although you might appreciate the straight-forward ERP pricing model where you had only a couple of variables, the variables offer flexibility. Some pricing models could be more affordable than the other depending upon your business model. Therefore, a thorough understanding of different variables and how they would impact the implementation is essential. This video will teach you different factors that drive the costs of your ERP project. RESOURCES & LINKS: ____________________________________________ ERP Purchase Process | A Comprehensive Overview: https://www.elevatiq.com/post/a-compr... How do ERP Systems Work?: https://www.elevatiq.com/post/how-do-... ERP System Evaluation Checklist: https://www.elevatiq.com/post/erp-sys... Download the ERP Selection Guide: https://www.elevatiq.com/guides-and-r... ____________________________________________ First, the following categories of costs that impact the costs of an ERP project: ERP Software Licensing Costs ERP Implementation Costs ERP Add-on Licensing Costs Integration Platform Licensing Costs IT Infrastructure and Hosting Costs Internal Staffing Allocation and Opportunity Costs ERP Support Costs and Upgrade Costs When it comes to ERP software licensing costs, the pricing model for on-prem and cloud could differ significantly. The one-time price for an on-prem individual license could be 2.5-3x of what you would pay annually for a SaaS user along with the software maintenance costs of ~25% of your licensing costs each year. The pricing model for implementation could vary depending upon the engagement model of your consultant. There are three most common models that exist when it comes to ERP implementation projects. The most common model is based on time and material (T&M), which essentially charges based on the hours worked. The other common model that exists for ERP implementation includes fixed-bid where the consultant charges based on the project or the scope. The third and perhaps the most effective for both parties would be the recurring model. This model charges based on per day or per month (sometimes, could be distributed over a number of years). Like an ERP, since an add-on is software in itself, the cost categories discussed in this video could apply to add-ons too. In addition, you may have a separate consulting company that might specialize in that product, so you need to accommodate for the add-on implementation costs. As an add-on, an integration platform is software in itself and may require you to consider all the cost elements discussed in this video along with the costs for an ERP integration consultant. Estimating IT infrastructure and hosting costs could be even more involved and a project in itself. Most companies might exclude opportunity costs just because they might not be capable of tracking internal costs. However, this is an important cost element to calculate the total cost of ownership and comparing different vendors. It’s also an important metric to assess the activities that might be cheaper to perform internally vs externally. There would be several cost elements that would affect the support and upgrade line item. The number of cost elements could also vary based on the configuration and ERP deployment model selected. In this video, we discussed seven categories of ERP project costs, starting with software licenses including on-prem and SaaS. Then we discussed ERP implementation project contract types including T&M, Fixed-bid, and recurring. Then we moved on to discussing several other cost categories including add-on, integration, infrastructure and hosting, and opportunity costs. Finally, we ended with support and upgrade costs that you need to keep in mind while budgeting for your next ERP project. Once you are ready to sign your ERP contract, don’t forget to read the fine lines of your ERP contract to ensure you don’t find any surprises later. ► If you need help with your ERP implementation or Digital Transformation project, check out our offerings at https://www.elevatiq.com/ ►Subscribe Today for great ERP Tips:    / @elevatiq   ►Follow us on Twitter:   / elevatiq   ►Follow us on LinkedIn:   / elevatiq   #ERP #DigitalTransformation #CIO #CFO #Controller #ERPEvaluation #ERPSelection