BAASS Insights Technology Blog

With conversations about 'The Cloud' picking up momentum every day, we are jumping on the bandwagon to bring you some facts about On-Premise Vs On-Demand solutions. Many factors come into play when choosing which deployment method is best suited for your organization and cost is just one - but an important one, so let's take a deeper look at that side of things. We will be discussing this topic a lot in future blogs so make sure you are subscribed for regular updates!

The first cost of an On-Premise Solution is the software. The client will need to budget for the following:

• Cost of the software
• Software Maintenance - annual
• System licenses
• Cost of database (SQL)
• SQL -Cost of upgrading SQL server

The next thing to consider in your on-premise budget is the cost of the actual hardware required. This can include:

• Hardware implementation costs
• Workstation Upgrades
• Citrix/Terminal - external connectivity
• Backup and testing backup routines
• Hardware upgrade costs

And finally, other costs can add up for the personnel required for an on-premise implementation. This can include internal as well as external personnel. Costs can include:

• IT personnel
• Upgrade Costs - services
• External IT costs
• Disaster Recovery Plan
• Cost of upgrading modifications & Customizations
• Phone Support
• Interim Upgrade Cost
• DB Performance Tuning
• Network Security Costs - Virus Protect
• Downtime

Then if we look at the cost of an On-Demand, or Cloud solution, costs include:

• Subscription fee
• Training
• Configuration

The cloud deployment pricing is a lot less complex when put into bullet points like this, but every organization has different needs, and not every company should put their business in the cloud. As I mentioned, cost is only one factor which should be considered when choosing an ERP system deployment option. 

The cloud deployment pricing is a lot less complex when put into bullet points like this, but every organization has different needs, and not every company should put their business in the cloud. As I mentioned, cost is only one factor which should be considered when choosing an ERP system deployment option. 

Enterprise resource planning (ERP) systems improve the way of doing business. By providing accurate, real-time information throughout your supply chain, an ERP system can help your company be more competitive. Seamless integration of information flows across all departments through a centralized database, provides a unified view of the business, and enables management to make more effective, timely decisions. A successful ERP implementation can provide better business intelligence, streamline business operations, reduce costs, enhance collaboration, and ultimately help you grow your business.

While most organizations rely on enterprise resource planning systems, relatively few are able to truly optimize the capabilities and functionality the software products can deliver. In fact, statistics show that more than 60 percent of ERP implementations fail to meet expectations. What constitutes failure? Not realizing the anticipated return on investment, extending the implementation schedule and go live date far beyond planned, going over budget by a large amount, interrupting the organization so much that business suffers, and stopping production and/or not delivering products to customers are the major issues. But this doesn’t mean your project is doomed from the start. Understanding the factors that can interfere with the project as well as what items can lead to success is extremely important.

The Eight Deadly Sins and Best Practices to Prevent Them

Knowing the common reasons ERP implementations fall short and how to avoid them can save you valuable time and money and help make your project a success.