ERP TCO Calculator
How much does an ERP system cost?
You may currently have a legacy ERP system, such as Sage, Microsoft Dynamics, Infor, JD Edwards, Made2Manage, or
one of the many others. It may not be serving you well today. You always have the opportunity to make a choice:
- Maintain the current system and postpone getting the benefit of a modern system
- Make the decision to move to a modern system
Of course, when purchasing a new ERP system, one of the first questions everyone asks is: How much will it cost?
Many factors are involved, from purchasing and installing equipment to configuring the software to ongoing maintenance.
True Cost = ROI – TCO
Most pricing models just calculate the initial hardware infrastructure, software licensing expenses, and implementation
costs, but do not consider the impact of ongoing operating expenses.
Return on Investment (ROI)
In our pricing model, we first look at the potential cost savings or Return on investment (ROI) the system will offer you. Some
results can be hard to measure, such as improvements in employee satisfaction and teamwork. As part of our
due diligence our local partners can help you determine your possible ROI.
Total Cost of Ownership (TCO)
The software license fee is not the cost of the software. The total cost of owning and maintaining the system over the 7
to 10 years expected life includes a great deal of “hidden” on-going people costs, plus your annual maintenance
fee. That fee is typically about 18% of the current list price of the software every year. This means you
are repurchasing your system every 5.5 years.
This annual maintenance fee gives you the unique opportunity every year to:
- Maintain your current legacy ERP system and receive no additional business benefits. We call this “The Cost
of Doing Nothing”.
- Replace your current system with a modern ERP system and start realizing the additional benefits of increased
Determine Your ERP Total Cost of Ownership (TCO)
Need More Information about Cloud ERP?
Are you in the process of educating yourself about cloud ERP? Or are you still making up your mind about which ERP to choose?
Learn exactly what Cloud ERP means and identify if a cloud solution is a good fit to empower your people, take control of your business, and play to your strengths.
Research ERP solutions, discover and evaluate potential solutions, and identify the software that can improve your businesses’ efficiency and reduce costs.
Find the resources you need to evaluate your ERP options whether you’re upgrading your current system or selecting a new one, so you make the right decision for your business.