SAP ERP Cost

How much does it cost to purchase and implement SAP ERP?What is the break-down cost of licenses, maintenance and support, installation, customization, data migration and training?

Vice Professor Asked on July 3, 2024 in Enterprise Resource Planning.
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1 Answer(s)

Software price

SAP ERP pricing starts at $94.00 per user, per month. They do not have a free version but offer a free trial. For larger enterprises, the cost can go up to $300 per user, per month.

Plans compared

SAP ERP offers three main plans: SAP Business One, SAP Business ByDesign, and SAP S/4HANA. SAP Business One is the most basic plan, starting at $94 per user, per month. SAP Business ByDesign is a cloud-based solution with pricing starting at $54 per user, per month. SAP S/4HANA is the most advanced plan, with pricing varying based on the specific needs of the enterprise.

Plans fit

SAP Business One is best suited for small to medium-sized businesses. SAP Business ByDesign is ideal for midsize companies and subsidiaries of large enterprises. SAP S/4HANA is designed for large enterprises and global organizations.

Other cost

Implementation costs for SAP ERP can vary depending on the size and complexity of the organization, but on average range from $50,000 to $150,000. Customization costs can also vary significantly but typically start at $10,000 for small businesses. Training costs can range from $1,000 to $5,000 per user.

One time fees

There may be additional costs for hardware and servers to support the SAP ERP system. These costs can vary but typically range from $10,000 to $50,000. There are also one-time licensing fees that can range from $1,000 to $10,000.

Alternatives compared

Compared to alternatives such as Oracle ERP Cloud, Microsoft Dynamics 365, and NetSuite, SAP ERP is generally considered more expensive. However, SAP ERP offers a wide range of features and is known for its robust capabilities in areas such as finance, supply chain management, and human resources.

Verdict

SAP ERP is a comprehensive and powerful software solution, but it comes at a higher price point compared to its competitors. With a wide range of features and scalability, SAP ERP is well-suited for large enterprises and global organizations that require advanced ERP capabilities. On a pricing grade scale of 1 to 100, SAP ERP would likely fall in the mid-range, around 60-70, due to its higher cost compared to alternatives.

Vice Professor Answered on July 3, 2024.
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