What is Your ERP’s Total Cost of Ownership?

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The expense of purchasing any software goes far beyond the licence price. When you buy a car, you have to consider fuel mileage, insurance, taxes, and maintenance over the life of the vehicle. Similarly, when you purchase an ERP system, you have to consider the cost of implementation, training, add-ons, technical support, hardware maintenance, upgrades, and more. The actual cost, rather than the listed price, is the total cost of ownership (TCO)

Many expensive ERP systems require long-term implementation plans. During the implementation phase, you may hire a consultant to help things progress more smoothly. Ideally, your vendor, business partner or outside consulting firm will give you a clear idea about how much consultation will cost. Unfortunately, that is not always the case

Depending on the ERP solution you choose, consulting fees in the UK range widely and some products have a more expensive hourly rate than others. The low end will usually be the most junior staff connecting with you remotely, while the high end represents senior staff consultation. Rates do not always include travel and accommodation expenses.

Now, if you choose an ERP system that has a history of taking a long time to configure to your business requirements, just imagine if your implementation system lasts for 5 or even 10 years. With some products, this can happen. Could you afford to keep even one consultant around at those rates?

Fortunately good quality mid-market ERP solutions such as Microsoft Dynamics NAV are designed from the ground up to enable quick and efficient implementation.  When you talk with us at Concentrix TSG, you can freely ask about the actual total cost of ownership of a Microsoft Dynamics ERP solution. You can even talk to other Microsoft customers about their experiences. What you will find is savings across the board with an unparalleled quality of service that money cannot buy.


By Peter Elgar with Concentrix TSG, Microsoft Dynamics NAV Partner based in the United Kingdom

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