SAP ERP Total Cost Rating: (10/10)

When comparing SAP ERP to their competitors, on a scale between 1 to 10 SAP ERP is rated 10, which is much higher than
the average ERP software cost. SAP ERP are offering few flexible plans to their customers, the basic cost of license starting
from $94 per user/month, read the article below in order to calculate the total cost of ownership (TCO) which includes:
customization, data migration, training, hardware, maintnance, updgrades, and more.

You can also leave your info with us to get a free custom quote with the break downs for your business needs.

Enterprise Resource Planning (ERP) Software Price Ranges

ERP software products are divided into three tiers, and each tier has its price ranges. Also, the prices are set on a per/user
per/month basis. The price ranges for ERP software are $20 to $50, $50 to $200, and $200 upwards for each respective tier.
The price ranges represent the basic or entry-level offerings from each vendor; hence, robust or more feature-packed
offerings will start at significantly higher prices per month. For example, Odoo pricing starts from $20 per user monthly,
MIE Track Pro pricing starts from $125 per user monthly, and RealTrac cost is around $169 per month.

In addition to this, ERP software products are also priced based on their target organization size; hence prices may differ.

Small Businesses can expect to pay between $10 to $50 for an ERP software, and the prices are set on a per-user, per
month basis. The number of users chosen on a given package also determines the prices. Some examples are Wrike, which
starts from $10 per user monthly, Britix24, which is priced at $24 per user monthly, and Ecount ERP, which starts from
around $50 per user monthly.

Medium Businesses can expect prices that range from $70 to $200 for ERP software. Again, most of the prices are set on a
per user, per month basis, and the number of user accounts can also influence prices. For example, Paragon ERP pricing is
around $150 per user monthly, SyteLine pricing starts from $100 per user monthly, and Visco costs up to $95 per user per
month. Also, some software have perpetual licenses, and an example is BatchMaster, which costs a one-time fee of $2,000
per user.

Large Businesses can expect prices which start from $200, and that can go as high as $1,000 per user, per month. ERP
offerings for large businesses are more feature-packed, and they usually include accounts for more users. For example,
WhereFour pricing starts from $400 per user monthly, while MultiView starts from $999 per month for a number of user
accounts.

ERP software best of breeds and their price ranges are as follows:

Supply Chain Management Software The prices for most supply management software in the market are based on a per
user, per month basis, and they can be divided into three tiers. The price ranges are $20 to $100, $100 to $1,000, and
$1,000 above, depending on the level of package. For example, Margin Point Mobile Inventory costs $89 per user monthly,
InfoPlus $696 per month, and Activate $5,000 per month.
Warehouse Management Software Most software in this category have standard offerings for SMBs and more premium
offerings for large-sized businesses. Businesses can expect to pay $70 to $200 for standard offerings and between $1,000 to
as high as $50,000 for premium packages. However, note that the small offerings are usually set per month, while the
premium offerings are usually perpetual licenses. For example, Finale Inventory starts from $99 per month, and FlowTrac
pricing starts from $130 per month. Meanwhile, Warehouse Management Suite costs 10,000 per license and DataScope
18,000 for a one-time fee per user.

Distribution Software Distribution software pricing ranges from $50 to $200 for those set on a per-user per month basis. On
the other hand, other distribution software have perpetual licenses that cost between $5,000 to $20,000, although
products with perpetual licenses may have separate fees for installation and training. For example, BizAutomation starts
from $79 per month, and Nowcommerce for QuickBooks costs $100 monthly. Alternatively, Oneir and WinFDS cost one-
time fees of 10,000 and 15,000, respectively.

Material Requirements Planning (MRP) Software Most Material Requirement Planning software pricing falls between $15
to $150, and they are usually set on a per-user, per month basis. However, there are others with more robust features that
can cost as high as $1,000. For example, MRPeasy pricing starts from $49 per user monthly, Total ETO costs from $85 per
user monthly, and MasterControl Manufacturing Excellence costs $1,000 per month.

Workforce Management Software Most workforce management products in the market have prices that fall between $15
to $150, and they are usually set on a per-user, per month basis. For example, Jobber starts from $29 per user monthly and
SynchroTeam from $22 per user monthly, but Outplacement has a one-time fee of $499 per user.

ERP Total Cost Breakdown

When it comes to selecting ERP software product, buyers are primarily concerned about its cost. In fact, it is the cost that
determines whether a potential buyer would go with the product. True, there is no one-size-fits-all formula to determine
the “worth” of a software product, but as a software buyer, you want to make sure you get the best value for your money,
without having to dig a big hole in your pocket.

Understanding the exact price of ERP Software isn't easy as The overall cost of software includes the cost of software
license, subscription fees, software training cost, customization cost, required hardware, and the cost of maintenance &
support and other related services. It's critical that you account for all of these costs to gain an understanding of the
system's "total cost of ownership."

3 Software Pricing Models

There are primarily three common pricing models – Perpetual License, Subscription, and Commercial open source.

Subscription/Software-As-A-Service: - Relevant for SAP ERP

Under this software pricing model, the software is accessed over the Internet, as opposed to installed on-premises. The
payment is made either on a per user basis or subscription basis. Ideally, customers are required to pay a recurring monthly
fee until a specific period for using the software. Subscription pricing model is more common with Software-as-a-Service
(SaaS) apps.

Upfront cost for customization and integration is less compared to perpetual license cost because there is not much
flexibility with SaaS systems in this area.

Recurring cost is greater as customers are required to make monthly payments as subscription fee. Additionally customers
using premium support services must pay an extra fee.

All in all, the total cost of ownership in the both cases is almost the same and may span over a period of 7-10 years, though
you may have to pay a higher perpetual license fee upfront. The software cost may vary from starter to mid range to
enterprise level apps in both cases.

Perpetual license: - Relevant for SAP ERP

A common pricing model for on-premise applications, perpetual license requires a customer to pay an upfront sum to own
the software or other intellectual property on-premises for a fixed term.

Upfront cost involves the fee for installation, customization, integration with existing systems, besides perpetual license
fee.

Recurring cost is low in this pricing model and may include cost for updates, maintenance, upgrades, and patches. Some
vendors do offer premium support services, which come for an extra price.

Commercial open source: Not relevant for SAP ERP

The customer can acquire the software free of cost without having to incur any upfront license fee. As a customer, you’re
solely responsible for the ongoing maintenance, upgrading, customization, and troubleshooting of the application to meet
your specific needs. You are on your own for providing end-user support, since you are not locked in with a vendor-supplied
software solution.

SAP ERP - cost of customization:

If you need specific features in your software catering to your specific business requirements, the vendor will charge
customization cost, depending on your needs and feature requirement. Ideally customization cost is more complex to
calculate compared to licensing cost.

Some apps allow you to easily combine data from multiple sources, without any complicated query requirements, while
some others can be embedded into different applications to provide enhanced reporting. If you seek products that support
customizable dashboards and predictive analysis to identity possible trends and facilitate decision making, you may have to
pay higher for all the customization features.

Additionally, the following factors may affect the cost of customization:

User interface changes

Configurable dashboards
Data elements required for tracking

Forms to collect additional data

Dashboard, management and operational reports that are needed.

Workflows and how complex they are.

Forms to collect additional data.

Here are some questions to answer: How much customization is needed? How many system you want to integrate to? Does
your company work like industry standars or has it's own customize processes? What kind of special reports are needed?

In order to calculate the cost of customization you can use the following estimates:

Minimal customization - integrate with 1-2 systems: $2,500

Standard customization - integrate with 3-5 systems: $10,000

Fully customized system - integrate with more than 5 systems: $25,000

SAP ERP - cost of data migration: Relevant for SAP ERP

Most companies opt for data migration services from a vendor, which raises the cost of product ownership. If you choose
to transfer data on your own, you can avoid paying the cost of data migration.

Data migration cost depends on the amount of data to be transferred, your current software, availability of migration tools,
complexity of data, and gaps between the existing system and the new system.

If your data is stored in excel spreadsheets, then it may incur you a lot of time and money to migrate data from excel.

By involving a software services provider in data migration, you are asking them to offer additional services, for which you
may have to pay extra.

As a rule of thumb the cost of data migration depents on how many records you want to migrate. Records can include
number of Customers, invoices, financial transactions, products, versions, etc. Here is a list you can use as a rule of thumb:

1,000 records: $500

10,000 records: $2,500

100,000 records: $10,000

1,000,000+ records: $25,000

SAP ERP - cost of training: Relevant for SAP ERP

As a software buyer, you are required to pay extra for in-person training, though some vendors offer web-based training as
part of the package. Training cost may involve end-user training, video/self training, group training, department training,
and train the trainer.

Training cost derived from the training approach that you select for your organization:

End-user training.

Group/Department training.

Video /self training.

Train the trainer approach.

Here are some questions to answer: How many training groups (different departments, usages, type of users) are needed?

In order to calculate the cost of training you can use the following estimates:

1-2 Training Sessions: $500

3-4 Training Sessions: $1,500

5-7 Training Sessions: $2,500

8-10 Training Sessions: $5,000

Cost of Hardware & IT: - Relevant for SAP ERP

This can be a major expense for on-premise software buyers that need their own servers and other infrastructure to install
the solution. This may be a costlier alternative than cloud solutions. In that case, you may want to go with cloud services
that do not involve infrastructural investments and you can rely on the vendor’s web-based solutions.

Software pricing may also depend on software capabilities, including marketing automation, sales automation, help desk,
and call center.

Cost of support for SAP ERP - An Important Factor:

As a customer investing in a software product, you are looking for constant support, besides the price of the software.
Support has become a crucial part of value-based pricing that you are willing to pay as a customer.
There is no use buying a software product and facing inconvenience due to some technical glitches that you know nothing
about and are reliant on the vendor to give you a solution. It is crucial that you go for a product from a vendor that provides
solutions to ongoing problems.

Shift From Licensing Fee to Subscription Fee Models: - Relevant for SAP ERP

In an effort to build more sustained relationships with customers, most software vendors have chosen to offer the managed
services model to accommodate changing customer behavior. There has been a significant drop in licensing revenue,
thanks to the emergence of software-as-a-service model and downfall of the packaged software.

The new pricing model requires customers to pay little upfront fee and ongoing subscription fee on a monthly basis. The
alternate pricing model stretches payments over a period of few years compared to lump-sum licensing fee.

Customers are happy to pay small monthly installments for subscribing to the ongoing support and maintenance services
from vendors, without having to pay large upfront payment which can be too much for small businesses.

Compare SAP ERP pricing to Alternarive ERP solutions:

When comparing SAP ERP to their competitors, on a scale between 1 to 10 SAP ERP is rated 10, which is much higher than
the average ERP software cost. The two main competitors of SAP ERP Software include Dynamics and Expandable.
Dynamics is cloud-based enterprise resource planning and business management solution just like SAP ERP cloud suite. SAP
ERP is a product of SAP which is a company in the United States and on the other hand Dynamics is a product of Microsoft
which was founded in 1975 and based in the United States.

Dynamics offer support online and via a 24/7 live rep whereas SAP ERP software offers support online, during the business
hours and via a 24/7 live rep. Dynamics offers training via documentation only, but SAP ERP offers training via
documentation, webinars, live-online and in-person.

Both Expandable and SAP ERP are cloud-based enterprise resource planning solution. SAP ERP is a product of SAP which is a
company in the United States and comparison Expandable is a product of Expandable Software which was founded in 1983
and based in the United States.

Expandable offers support during the business hours and via a 24/7 live rep and in contrary SAP ERP software offers support
online, during the business hours and via a 24/7 live rep. Both Expandable and SAP ERP offers training via documentation,
webinars, live-online and in-person.
 Companies that use SAP ERP (Sample Data)
Central Garden & Pet Company

Colgate-Palmolive

Cooper Standard Automotive Inc

Johnson & Johnson

Tyson Foods, Inc