Replacing a legacy system with a modern ERP is a tough, but valuable, decision a business must face. Improved technology, tighter competition and savvy consumers all play a role into the necessity for an organization to evaluate their ERP.
Our Partner, Acumatica, has developed a tool to help determine the true cost of upgrading or sticking with a legacy system. Acumatica’s ERP TCO & ROI calculator can help determine the true ERP system cost and also is a tool to help choose the right ERP system for you and your business.
Modern ERP solutions offer security, scalability, adaptability, and mobility. These features are obviously desirable, but the concern most people have is the cost these benefits come at.
How much will a modern ERP system cost? This question alone can cause businesses to continue to rely on their existing legacy system. But perhaps you should be asking, how much is maintaining my legacy system costing me?
The answer to that question comes from defining the “ERP True Cost”.
What is the True ERP Cost and why is it important?
Businesses that are looking to upgrade an existing ERP or implement a cloud-based one may already recognize that cloud applications can deliver an impressive ERP return on investment (ROI). But you must also understand the need to calculate the Total Cost of Ownership (TCO) of a system to determine all costs associated with implementing a new system.
TCO isn’t calculated by just the upfront and obvious costs such as hardware expenses, software license fees, IT staff, and initial implementation costs. It also includes hidden costs such as employee’s time and effort to implement the system, future system customizations, retraining, and upgrades to name a few.
The ERP ROI and ERP TCO, when calculated correctly, form the components of what we like to call the “true cost” – or ERP true costs – of implementing a typical, modern ERP system for SMBs. True cost is your ROI minus your TCO over five years.
True Cost = ROI – TCO
Because the 5 year TCO and ROI estimate are essential for making the right choice of ERP system, Acumatica came up with their own ERP TCO calculator to help with decision-making.
While a similar type of calculator may be available through other vendors, our ERP TCO calculator gives you the opportunity to compare the offerings of all ERP systems, not just Acumatica’s. Plus, it is interactive and you can change the assumptions and variables to fit your unique situation. If you are struggling with concerns about implementing a new ERP system, the calculator can help ease your fears with facts.
Your ERP true costs, based on ROI and the information you provide for the ERP TCO calculator, are important; it gives you a clear picture of what to expect when you choose between maintaining your current system and purchasing a modern system.
Why choose Acumatica?
Acumatica is a leading provider of cloud business management software that empowers small and mid-size businesses to unlock their potential and drive growth. Built on the world’s best cloud and mobile technology and a unique customer-centric licensing model, Acumatica delivers a suite of fully integrated business management applications, such as Financials, Distribution, CRM, and Project Accounting, on a robust and flexible platform. In an interconnected world, Acumatica enables customers to take full control of their businesses, play to their organizations’ unique strengths, and support their clients by following them anywhere on any device.
Want more information? Contact the experts at CompuTec Integrated Solutions!
CompuTec Integrated Solutions is an IBM Business Partner and ERP Vendor with over 21 years of experience. Working closely with their clients, they strive to find the best software solution to fit an organization’s particular needs. CompuTec Integrated Solutions also sells hardware, software and storage solutions. Contact us today!