ERP price and ERP cost are not something which is fixed, they differ based on several factors such as the kind of ERP solution you sought for, the organization or service provider selected for your ERP implementation, and finally the size of your project. Cost is the most important factor considered during ERP implementation.
This blog post discusses the different cost types associated with ERP implementation. If you are in the planning stage of ERP installation, this blog can greatly help you.
The type of product you choose is the main factor that determines the ERP price. When we are taking the case of open source ERP, the base cost is what varies there. There are also base pricing for the service associated with the ERP product you are choosing. Also, there is an open-source solution like Odoo where the license cost is absolutely free and all you have you pay for is during the customization process.
Modules or Apps cost:
Now you have chosen your ERP, the next area where you have to pay for will be the modules or apps which you should have for your business. We can state this with an example, consider the case of a simple trading business, in this case, implementation of modules is an easy task. Now consider the case of a manufacturing business, here the operation associated with the business is complicated, so for covering each area of the business certain modules will have to be implemented. Also, there will be cases where you have to customize the ERP in order to suit your business level.
Another area where ERP cost is coming to consideration is the license. There are ERP’s which cost you for the license and also there are some other ERP like Odoo where license cost is nil. In the case of a paid license, the cost will be depended on the number of users making use of the software. Since the license is completely free in the case of Odoo it will be wise to choose this ERP software if you are in the beginning stage of your business.
Server cost is another area where you will have to pay while going for an ERP implementation. The server cost will be depended upon the kind of server an organization is selecting. Server costs will also fluctuate based on factors such as modules or users who make use of the software. The server cost varies according to your use. If the organization is very big in size, there will be more useful and so the server cost will also be high, whereas if the organization is small, the user will be less and because of that, the server cost will also be less.
Vendor cost (service charge):
We have now discussed the license, module, product, and server costs associated with the ERP. After these costs are decided, the following area to consider will be the implementation cost of the vendor. If you decide to implement ERP software in your firm, you will have to consider the various costs of employing during the implementation process. This includes ERP professionals for implementation, technical support team, functional consultant, etc. There will be variation in vendor fees according to the nature of implementation and also the services you demand during the implementation.
The vendor cost also varies according to consultation fees, cost of development, cost of customization, outsourcing cost, etc. which are associated with the implementation process. So you will have to consider all these factors during the ERP implementation.
On-site vs offsite development cost:
This is another area where the ERP cost may vary. If you are selecting a vendor locally then it will be on-site development and the cost won’t be much but if the vendor is located on some other areas then remote development or offsite development shall be done which will cost you more than on-site development.
After the implementation of the software, the next cost associated with the ERP will be the maintenance cost. There will be annual maintenance cost for the software or support charges for help and backups for the functioning of ERP from the vendor side after the implementation process. So this can be considered as the final cost associated with the ERP implementation. Most of the maintenance cost or support cost will be ten to twenty percent of the total project cost. Support cases arise when there are some issues with the ERP for which you will have to contact the vendor for a solution.
Odoo will be a cost-effective ERP solution for your business. The license fee is completely free in the case of Odoo. The only areas where you are required to make payment for Odoo are during the purchase of the enterprise version and also during the customization process. You also will have a maintenance fee associated with Odoo software. But with the varied features, it has to offer onboard along with the free license Odoo will definitely be a great choice if you are looking for an ERP solution.
To know more about ERP implementation and costs associated you can refer to our previous blog posts;
As an overview of the complete blog we can finally make some general conclusions;
* The ERP cost varies according to the product you want.
* You will have to make payment for the associated modules and apps.
* There are ERP with license cost and without license cost.
* The service charge or vendor charge is the amount you have to pay for the implementation of the software from a professional side.
* According to the site, your implementation charge varies.
* There will be maintenance cost or service cost associated with the ERP implementation.
* Odoo is a choice to consider for a value for money ERP implementation.
If you are looking for a partner for Odoo implementation, Cybrosys will be your best option. To know about more Odoo ERP implementation from Cybrosys, contact us in this mail ID: firstname.lastname@example.org.