The Four Costs of a Sage 100 ERP Project

This question is the most complicated question to answer on the fly as most software evaluators ask.  They want to know what’s the total project going to cost and how long will it take to be up and running.  This blog will hopefully give you a running start on how to prepare for a new ERP Software, in my case, Sage 100 ERP and Sage 500 ERP. The Four Costs of a ERP Project There are four elements to consider in your budget. 1. Software License Fees- Depending on how you choose to deploy the software, hosted (outsourced IT), on-premise or cloud, these prices vary.  Most cloud solutions require you to pay a monthly fee, but they bill you 12 months in advance. The hosted route requires you to pay for the ERP solution and pay an outside company to host it for you.  The on-premise route allows you to host it yourself. 2. Maintenance Fees- The on premise solutions will charge an 18%-25% yearly maintenance fee.  This fee provides any upgrades, patches for the year. 3. Hardware- Many of our customers had to upgrade servers to accommodate the ERP.  Ask for a hardware compatibility chart from the vendors. 4. Implementation Services Software- Most ERP companies will perform some sort of discovery/needs analysis before giving a price. Implementation Services Defined Requirements Analysis-Definition of Scope Analyzing and documenting your specific business requirements, scope and project plan. Installation- Installing the software on your company’s servers and/or workstations. Configuration Setting up the software with your business information, users and personal settings. Integration Configuring the software to “talk to” your existing systems to eliminate double entry. Data Migration or Conversion Transferring data from your current system to the new system. Customization Changing the source code of the software to fit a specific need or business process. Reporting Creating or modifying custom reports and forms not included in the standard software (such as invoices and checks). I hope this helped, please let us know if your company is evaluating ERP software.  We will perform a deep dive discovery of your current state and help with going to the next level.