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How much does ERP system implementation cost?

Planning to use an ERP (Enterprise Resource Planning) software in your SMB? Check out this guide with all associated costs. Hint: SaaS solutions might save you a fortune, check out the charts and calculations.

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How much does ERP system implementation cost?

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  1. HOW MUCH DOES ERP IMPLEMENTATION COST?

  2. ALL COSTS BY SOFTWARE TYPE

  3. SOFTWARE TO ADDITIONAL COSTS RATIO • Legacy ERP 1 to 1.5+ • Involves hardware cost, deep customization is always required which drives the price up, the projects are prone to drag out on go over the budget due to services; • Out-of-the-Box ERP 1 to 1+ • Involves hardware cost and even though these can be installed out of the box, often these solutions are complex and unintuitive, built on the 80s and 90s frameworks. • Postmodern ERP 1 to 0+ • No installation required. The software is designed to be intuitive and effective by utilizing the latest frameworks. In most cases can be implemented autonomously.

  4. COST BREAKDOWN OF ERP IMPLEMENTATION

  5. COST BREAKDOWN OF ERP IMPLEMENTATION Licenses: One-time license fee per user is around $4,000. For out-of-the-box ERP $1,600 - $4,000. A SaaS ERP subscription fee per user/year is in $400 to $900 range. [1-5] Hardware: For an out-of-the-box ERP, a budget server will cost at minimum $9,000. [6, 7]. A decent hardware solution with related items to run a Legacy ERP can cost $35,000 and more [2]. Services: Out-of-the box and legacy systems require more additional services. Average hourly rate ranges from $100 to $200. Since modern SaaS ERP are built using a different approach there is little-to-none additional services needed.

  6. MAINTENANCE COST

  7. MAINTENANCE COST ERP System Maintenance On average the maintenance cost is in the range of 15-20% per year of the license cost. Usually percentage is lower for legacy and higher for out-of-the box systems. No maintenance fee for the SaaS solution. Hardware Maintenance Regular hardware maintenance fees can be around $2,400 – $4,800, up to $10,000 a year. Cost of electricity for a small server is ~ $500 a year. The hardware needs to be replaced every 3-4 years. [7, 9, 10] Employee Training The more complex the system is, the more difficult it is to prevent brain drain. Training is needed for new workers and to maintain effective practices across the company.

  8. TOTAL COST

  9. MRPEasy Cloud ERP/MRP Solution • Production planning and reporting • Supply chain management • Stock management • CRM • Managerial statistics, business intelligence • Integration with online accounting solutions • Easy to deploy and use! Visit us @ www.mrpeasy.com

  10. Reference List [1] http://www.mrpeasy.com/pricing [2] http://www.calsoft.com/blogs/how-much-does-an-erp-system-cost/ [3] http://www.itqlick.com/pricingnow/question/fishbowl-inventory-cost/ [4] https://www.itqlick.com/pricingnow/question/enterpriseiq-cost/ [5] https://desktop.apps.com/apps/135596 [6] https://www.digitalfirst.com/cloud-server-vs-office-server-which-costs-more/ [7] http://www.gizmofish.com/blog/bid/337277/IT-Support-Tip-What-will-a-server-cost-my-small-business-Part-1 [8] http://www.navisionsupport.com/faq.php [9] http://www.itjungle.com/tfh/tfh061311-story03.html [10] https://commons.wikimedia.org/wiki/File:SAP_Implementation_process-data_diagram.png [11] http://www.zdnet.com/article/toolkit-calculate-datacenter-server-power-usage/

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