Professional Documents
Culture Documents
Engineering:
ERP On-Premise or On
Cloud
Group F8:
Soumyasree
Sridhar
Tripti
Vipul
(0391/52)
(0392/52)
(0417/52)
(0443/52)
1. What are the pros and cons associated with each service option?
Pros
Cons
Bluechip ERP on
premise
Codeautomation
ERP on premise
Codeautomation
ERP on cloud
Concerns of Unreliable
service due to lack of
experience
Product quality is
questionable as it is a
startup
Database not available
for onsite workers
Not scalable easily
during growth phase
High recurring annual
costs (2.11-2.31 times
of option 2)
High Security Concerns
due to data transfer via
internet and data
storage on service
provider database
Employees may not be
tech-saavy
Concerns over service
as it as a startup and
the cloud technology is
also new
2. Evaluate TCO over a period of five years for the options available to
VINSUN?
5 year costs for Bluechip ERP on premise
Workstations
Workstation UPS
Laptops
Server
Backup server
Server UPS system
Total hardware costs
ERP Application
software
Consulting
Deployment cost
Training
Total software cost
Hardware maintenance
Software maintenance
Annual cost
Initial
First
Cost
year
209700
0
22290
0
132488
0
100000
0
100000
0
7750
0
572228
0
960000
80000
520000
180000
174000
0
0
0
231222
8
0
0
0
0
0
57223
31320
0
37042
3
Second
year
0
0
0
0
0
0
0
0
0
0
0
0
57223
313200
370423
Third
year
Fourth
year
Fifth
year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
57223
31320
0
37042
3
0
57223
313200
370423
0
57223
31320
0
37042
3
Fifth
year
0
0
0
0
0
0
0
0
0
0
51223
66000
0
Network infrastructure
setup
Router maintenance
Network maintenance
Internet line
Annual cost
120000
0
0
0
108770
7
0
1548
12000
11988
14275
9
0
1548
12000
11988
142759
0
1548
12000
11988
14275
9
0
1548
12000
11988
142759
0
1548
12000
11988
14275
9
Workstations
Workstation UPS
Laptops
Total hardware costs
Servicing Fee
Data storage cost
Total software cost
Hardware maintenance
Software maintenance
Router
Network infrastructure
setup
Router maintenance
Network maintenance
Internet line
Annual cost
Initial
First
Second
Cost
year
year
209700
0
0
22290
0
0
132488
0
0
364478
0
0
19200
0
0
192000
0 60000
66000
0
0
0
0 36448
36448
25200
0
0
258000
15479
0
0
0
0
0
0
379957
Option
0
1548
0
11988
30198
4
0
1548
0
11988
307984
Third
year
0
0
0
0
19200
0
72600
0
36448
26460
0
0
0
1548
0
11988
31458
4
2312228
1852114
1087707
713794
379957
1576225
Fourth
year
Fifth
year
0
0
0
0
192000
79860
0
36448
271860
0
0
1548
0
11988
321844
0
0
0
0
19200
0
87846
0
36448
27984
6
0
0
1548
0
11988
32983
0
Total
cost
416434
2
180150
1
195618
2
3. Given your analysis, suggest what Satav should do? Justify your
suggestions.
The first decision point for Vinsun is whether to implement ERP or not. The
objective of Vinsun is to find a way to access accurate information more
rapidly. The main concerns about implementing ERP are employee