ERP price and ERP cost differs based on the kind of ERP solution your organization has choosen including the size of the project. As we know that before implementing an ERP cost is one of the most important aspects to understand the investment which is required to develop an ERP software for the organization. In this blog post, we will cover what are the different types of ERP cost involved when an ERP solution is implemented and we hope with this blog post you can understand the basic ERP cost consists during any ERP implementation planning stage.
One of the major areas of ERP Price is directly linked to the type of ERP product you are selecting for your organization. There is ERP software which falls into the category of proprietary or open source solution based on which the base cost of an ERP solution varies. There is proprietary ERP software available in the market which consists of base pricing with the service you would like to get from the vendor. Further to that, there are even open source solutions available in the market which is available free of cost with the limited budget.
Modules or Apps :
Once you select the product another ERP price incremental factor is the module or apps that you would like to implement for the business. As an example of a normal trading business, the module implementation will be simple whereas, if it’s a manufacturing business there might be a certain complicated process which needs to be covered by an ERP solution. Sometimes businesses work with custom processes in an organization, therefore, there may be chances where one need to customize the module to meet the requirements and business goals.
ERP Price for Licensing is one of the major erp cost involved in any implementation. Licensing cost is based on the number of users that would be using the software. There are a different version of ERP software available in the market today such as cloud version implementation on your server, SAAS – Software as a Service model and so on based on the version the cost of licensing differs.
ERP cost for Server
Server cost is another cost which is involved in ERP implementations cost, therefore one needs to keep in mind what kind of server the organisation is selecting including the infrastructure.. server may vary based on the modules or users who would be using the software as for big organisations were implementing an ERP software the cost can go higher and for small businesses where the usage of ERP software is less the cost can be less.
Vendor Implementation or Service Charges
If you notice in the above we covered the product, license, Modules, and the server cost for ERP. Once you decide on all these costs there is another cost which is involved in an ERP software that is the implementation cost by your vendor. If you are implementing the ERP in-house then one needs to consider the cost of employing Expert professional, functional consultants, technical support people which will be involved in the implementation. Vendor fees may vary based on the kind of implementation and services you are expecting this can be a fixed bid model or time in material model.
There may be different ERP costs with vendor costs such as consultation fees, development cost, customization charges, training and so on these costs are involved in the implementation of an ERP software. implementation cost of an ERP software provided by a vendor includes all these duties that would be performed while undertaking the project.
On-site v/s Offshore development ERP cost
The ERP price may vary based on the onsite vs Offshore development as if you are selecting a local vendor then the on-site cost will be less various if the vendor is located in another region then the onsite cost will be little higher.
Once you implement the software there is AMC – Annual Maintenance or Support charges that needs to be paid to the vendor based on ticket system for any kind of help required by any department while using the software. Therefore, Maintenance cost is the final cost which one need to take into consideration during selection of a vendor. The maintenance cost can vary between 10 to 20% of the total cost of the project that needs to be paid yearly or maybe for certain Complex issue there will be cost based on the resolution time required by the vendor.
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