On-Premise, Hosted or Cloud – Is a Hosted Pricing Structure Right for Your Company?
Posted on: January 5, 2014 | By: Craig Thompson | ERP Selection
You’ve chosen your ERP system and now you must choose something equally as important: your deployment option. When it comes to deployment, you have three main options: On-Premise, Hosted and in the Cloud. In part five of our blog series “On-Premise, Hosted or Cloud – What Works Best for Your Company?”, we will begin to explore the different pricing structures for each deployment option. If a Hosted deployment option seems to suit your company best, you will want to be sure that a Hosted pricing structure meets your budget requirements.
A look at our infographic shows the following pricing structure:
Software: $15,000
Hosting Fees; $9,000
Annual Maintenance: $3,000
Database Software: $1,000
Updates: Varies
In order to make a decision, you must decide if this pricing structure is right for you. To break this down a little further, with hosted deployment you make a one-time purchase of software. In this scenario we have our ERP software being priced at $15,000. Although this software must be maintained, it will never have to be purchased again. This software is now owned by your company. In order to properly implement this solution you must also purchase database software, which runs around $1,000. You will also have annual maintenance fees for your system running at about $3,000. So far this pricing structure is familiar to an on-premise deployment, yet the difference is within the infrastructure. With a hosted deployment, infrastructure is in the hands of the hosting company, which means your company must pay annual hosting fees. These range in price, with our scenario basing hosting fees around $9,000 a year. As with all options, software updates will vary.
In the end, a hosted deployment offers mid-range costs upfront with a fee that must be paid annually. Your company will own the software and will not be in charge of infrastructure. Is hosted ERP deployment a fit for you? Contact Logan Consulting for more information.