The Cost of On-Premise Vs On-Demand Solutions

    
 

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. 

 

BAASS Consultant

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BAASS Consultant