ERP software solutions are ideal for all small and mid-sized businesses that aspire to scale their business and become industry leaders. It comes with a range of benefits that spread across the business functioning ranging from sales, marketing, HR, and finance to banking operations. SAP Business One is among the most reliable ERP solutions that are chosen by all businesses desiring to enhance their functioning and reap better profits.
SAP provides a range of benefits to all businesses such as automated business processes, streamlined operations, cost reduction, data security, data management, real-time data intelligence, better customer retention, assistance to marketing and sales teams, enhanced scalability, and increased efficiency. With this range of benefits, it becomes the ideal solution and a one-stop destination for all businesses.
However, the SAP Business One software comes with a range of intricacies that must be carefully understood before implementing the software solutions. There are distinct software requirements, subscription models, and customizations that must be integrated to fully benefit from the software. Even though the SAP Business One software is intuitive, these intricacies are best understood by SAP Business One experts who can seamlessly incorporate the software in no time. All these factors also determine the SAP ERP pricing and, must be carefully considered.
Let us understand the ERP SAP pricing by going through all the factors that influence it. These include:
- Software Integration: The first thing to keep in mind is that SAP software does not work in isolation. It is integrated with the ongoing functioning and software of the business. Now, if the currently employed software can be integrated with SAP the cost of implementation would be less. On the contrary, if this integration is not possible, it will add to the cost of the software implementation. As a result, studying the current software and the functioning of the firm are integral factors in determining the overall cost.
- Customizations: SAP software caters to a range of industry verticals and sizes of firms, as a result, it comes with multiple customizations. These customizations can be integrated according to the business requirements and are important to ensure the optimal utilization of the software. Each of these customizations comes at a designated price which must be accounted for. The more the number of customizations necessary, the more would be the total cost of implementation.
- Number of Users: The primary SAP ERP pricing consideration is done by looking for the user requirement. The businesses should have appropriate hardware together with the software. The more the requirement for the number of users, the more would be the cost of implementation of the software solutions. It is integral to carefully understand the user requirements.
- Software Database: When considering small-sized forms, they can work with generic SAP databases. As against this, mid-sized firms and large businesses demand a more specific database to operate. This comes at an extra cost compared with the generic database. Therefore, the cost of the SAP implementation also greatly depends on the database requirements.
- Expert Consultation: Since the intricacies of the SAP software are many, businesses often onboard an SAP expert. The consultation cost of this expert also greatly adds to the total cost of implementation and must be considered. Here, keep in mind that availing these services virtually comes at a lower cost than in-person consultation. Either way, adding this one-time cost is also important.
- Maintenance Cost: Businesses often miss out on accounting for the maintenance cost which is a recurring yearly expense that adds to the software cost. The maintenance cost usually comes down to 15-22% of the total software cost and is an important investment to keep the software up-to-date and free of any glitches.
- Subscription Model: Lastly, there are different subscription models for SAP ERP pricing. The model chosen also significantly impacts the cost of the software. There can be a one-time cost and also distinct monthly subscription packs. Businesses can choose which subscription model is ideal for them and determine the costs based on that.
All these factors together contribute to determining the overall SAP ERP pricing. There is no set formula for the price determination because it is dependent on a range of factors.
Onboarding an SAP expert assists in reducing the cost since they ensure that you only pay for the software features that are immediately relevant to the functioning of the business. Further, they also ensure that the integration process is seamless and study the business requirements to determine the most suite software solutions.
Praxis Info Solution is a reliable SAP b1 partner to assist businesses in implementing software solutions at affordable software pricing. Further, they also provide technical and educational support to ensure a smooth transition and that the business requirements are thoroughly met. Connect with the experts at Praxis today to let go of all your software integration worries. It will assist you in minimizing expenses and time in software integration.
