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Cost of Accounting Software: Which ERP Software Deployment Gives you the Most for your Money?

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Different types of accounting software deployments have different costs. Let’s take a look into deployment costs associated with on-premises and Software as a Service (SaaS)….how does it all add up?

First of all, it’s important to understand the difference between on-premises software and SaaS. When you go on-premises, you are purchasing a perpetual license and will pay annual maintenance fees.   You have the ability to deploy it from your data center. You manage it from there. When you purchase SaaS, you rent a complete turnkey package that includes software, hosting center services and required hardware.  There is no annual maintenance and you don’t have to buy (or house) hardware.   Did you know the cost of electricity to run your servers will exceed the purchase price of the hardware over its lifetime?

Most experts find a SaaS deployment to be a cheaper option.     The savings in hardware, utilities and management are substantial.   The largest savings comes in reduced IT staff costs.   If your IT staffing costs are considered fixed (you are not going to reduce head count) and you prefer to buy hardware, house it, insure a backup is made (and tested) and don’t measure utilities, the perpetual license may make sense.    Perpetual licenses feel more like the way business has been run for the last 20 years.

A few details that are not included in the software cost are important to note. For example, if you go for a SaaS deployment, you don’t have to pay everything up front, you don’t have to staff IT resources because your software is managed for you, and you also are up-to-date at all times. On-premises software has to be upgraded locally and often requires new hardware.

There are many things to factor in when figuring out the cost of accounting software and you need to know the right questions to ask yourself to find whether SaaS or On-premises will be more beneficial for your business. We here at SSi consulting have years of experience and can help you make this important decision. Contact us for a free consultation.

By Bill Aiton with SSi Consulting, Microsoft Dynamics Partner based out of Maryland

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