HOW MUCH DOES ERP

IMPLEMENTATION COST?
ALL COSTS BY SOFTWARE TYPE
On-Premises: Big legacy ERP/MRP systems On-Premises: Out-of-the-bo ERP/MRP SaaS: Postmodern ERP/MRP

• Emerged in the 2010s

• First introduced in the 1970s
• Very flexible, deep customization required
and can be perfectly fitted for a company
Key characteristics
• Very big and complicated
• Very long implementation times
• Expensive to obtain and maintain
• Licensing
• Hardware
Unavoidable costs • Training and implementation
• Custom development
• Software maintenance
• First introduced in the 1980s
• Can be installed out of the box
• Less flexible, but still very big and
complex systems
• Customizable
• More affordable than legacy systems
• Licensing
• Hardware
• Training and implementation
• Software maintenance
• Modern user interface
• End-to-end service, the client only needs
devices with internet connectivity
• No software installation
• Less flexible, but still powerful and
customizable
• Always up-to-date
• Short implementation phase
• Subscription service
• Subscription fee

• Additional training • Training and implementation

Situational costs • Additional training
• Custom development • Custom development
SOFTWARE TO ADDITIONAL
COSTS RATIO
Legacy ERP 1 to 1.5+
Involves hardware cost, deep customization is always required which drives the price
up, the projects are prone to drag out on go over the budget due to services;

Out-of-the-Box ERP 1 to 1+
Involves hardware cost and even though these can be installed out of the box, often
these solutions are complex and unintuitive, built on the 80s and 90s frameworks.

Postmodern ERP 1 to 0+
No installation required. The software is designed to be intuitive and effective by
utilizing the latest frameworks. In most cases can be implemented autonomously.
COST BREAKDOWN OF ERP
IMPLEMENTATION
COST BREAKDOWN OF ERP
IMPLEMENTATION
Licenses:
One-time license fee per user is around $4,000. For out-of-the-box ERP $1,600 -
$4,000. A SaaS ERP subscription fee per user/year is in $400 to $900 range. [1-5]

Hardware:
For an out-of-the-box ERP, a budget server will cost at minimum $9,000. [6, 7]. A
decent hardware solution with related items to run a Legacy ERP can cost $35,000 and
more [2].

Services:
Out-of-the box and legacy systems require more additional services. Average hourly
rate ranges from $100 to $200. Since modern SaaS ERP are built using a different
approach there is little-to-none additional services needed.
MAINTENANCE COST
MAINTENANCE COST
ERP System Maintenance
On average the maintenance cost is in the range of 15-20% per year of the license
cost. Usually percentage is lower for legacy and higher for out-of-the box systems.
No maintenance fee for the SaaS solution.

Hardware Maintenance
Regular hardware maintenance fees can be around $2,400 – $4,800, up to $10,000 a
year. Cost of electricity for a small server is ~ $500 a year. The hardware needs to be
replaced every 3-4 years. [7, 9, 10]

Employee Training
The more complex the system is, the more difficult it is to prevent brain drain. Training
is needed for new workers and to maintain effective practices across the company.
TOTAL COST
MRPEasy Cloud ERP/MRP Solution
 Production planning and reporting
 Supply chain management
 Stock management
 CRM
 Managerial statistics, business intelligence
 Integration with online accounting solutions

Easy to deploy and use! Visit us @ www.mrpeasy.com

Reference List
[1] http://www.mrpeasy.com/pricing
[2] http://www.calsoft.com/blogs/how-much-does-an-erp-system-cost/
[3] http://www.itqlick.com/pricingnow/question/fishbowl-inventory-cost/
[4] https://www.itqlick.com/pricingnow/question/enterpriseiq-cost/
[5] https://desktop.apps.com/apps/135596
[6] https://www.digitalfirst.com/cloud-server-vs-office-server-which-costs-more/
[7] http://www.gizmofish.com/blog/bid/337277/IT-Support-Tip-What-will-a-server-cost-my-small-
business-Part-1
[8] http://www.navisionsupport.com/faq.php
[9] http://www.itjungle.com/tfh/tfh061311-story03.html
[10] https://commons.wikimedia.org/wiki/File:SAP_Implementation_process-data_diagram.png
[11] http://www.zdnet.com/article/toolkit-calculate-datacenter-server-power-usage/