ERP Value

What’s the On Premise ERP Cost?

That’s a good question; but it has to be put into perspective. Do you want a Web-based Enterprise Resource Planning (ERP) hosted system, or do you prefer the more expensive in-house system with its own server and storage. The latter is something large corporations seem to opt for, while smaller businesses find the Web option more appealing. The main consideration here, is cost, as in money. On premise ERP cost can be very expensive. It includes costs for implementation, training and any customization that might be desired.
These costs can reach into hundreds of thousands of dollars, or more.

Web-based cloud computing or software as a service (SaaS) is becoming increasingly popular with small businesses and is certainly more cost effective for them. With this type of enterprise package you can access a number of applications and tools through the cloud; these are shared resources that are provided to you on demand. It works like an electricity grid; you pay for what you use. This cost is generally based on the number of users for a certain period of time. The business pays a subscription fee for the service.

Web-based enterprise software has become very popular today, and represents an increasing share of the marketplace. The market for in-house ERP set ups, on the other hand, is in a slump because of the high costs associated with it. So, the choice to make depends largely on the size of your business and your pocketbook. On premise ERP cost can vary widely, and any business, whether large or small, will need to consider what the best option for them to take is. And, again, this decision will more than likely be based on cost.

Some businesses find that while the Web-based option is appealing, there are concerns about the system being down. If the Internet is not accessible, neither will your software system be. However, most businesses will tell you that this is a rare occasion, and if it does happen, the system is not down for long. Large companies feel they can’t afford to have their system down for any period of time and therefore prefer the more expensive in-house approach

One thing is for sure, though. Whichever platform you go for, make sure that all costs are made clear in advance. Some ERP implementation costs have been known to increase as the project gets going. So, make sure that your on premise ERP cost is set and made clear before you deploy.

Written by :

kristine H