ERP, Logiciel erp gpao, progiciel erp gpao pour pme HERAKLES ERP GPAO #erp, #logiciel #erp,


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Logiciel HERAKLES erp progiciel gpao pour pme – solution de gestion de production

Le logiciel erp pme. logiciel de gestion de production HERAKLES erp gpao est un ERP spécialisé pour les PME industrielles ayant des besoins de fabrication soit à l’affaire, soit sur prévision de livraisons (PIC PDP) soit sur niveau de stock. L’offre complète du logiciel erp pme de gestion de production HERAKLES erp gpao propose les fonctions de CRM (Gestion de la Relation Client). de Gestion Commerciale. de Gestion de Production à l’affaire et sur prévision (PIC, PDP).

Les services proposés par l’équipe HERAKLES et ses partenaires se sont en p ermanence perfectionnés pour répondre au mieux aux réalités et aux exigences des PME afin d’obtenir une exploitation rapide et performante du logiciel erp pme de gestion de production HERAKLES erp gpao. La maîtrise des aspects techniques, des schémas d’organisation, de la nécessaire évolution des modes de gestion des entreprises, nous permet de vous apporter une réponse complète et cohérente à l’ensemble de vos besoins.

Les modules du logiciel erp pme HERAKLES erp gpao personnalisables et en constante évolution depuis plus de 17 ans apportent une efficacité aux PME à travers l’usage du bureau décisionnel. véritable plate-forme d’optimisation du travail quotidien, le configurateur de produits. l’efficience économique du calcul des besoins (CBN). le planning interactif mis à jour en temps réel, la gestion efficace des achats et du stock. la traçabilité. le suivi de production par code-barres. la contrôle de la qualité. la gestion facile du SAV et pour synthétiser l’ensemble, les analyses instantanées à travers les tableaux de bord proposés par HERAKLES Report.


Erp system knowledge, erp system knowledge.#Erp #system #knowledge


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ERP Software

Think of it as an ongoing process that reflects and responds to changes in the business environment. The answers to the five questions discussed previously are a moving target. For example, today’s micro-segmentation strategy may not make sense tomorrow. For this reason, inventory optimization leaders are those companies that have created an ongoing capability to monitor conditions across the supply chain — from rising transportation costs to dramatic shifts in demand — and adjust inventory levels accordingly.

This is the area of performance that separates the leaders from the followers. Best-in-class inventory strategists continuously monitor and re-align their supply chain posture so that it reflects current business conditions. How many business failures could have been averted in the last two years if companies had responded more proactively to changing conditions?

Leading organizations are implementing a number of end-to-end process changes — including the use of interactive process playbooks and weekly plan-do-check-act cycles — to keep the inventory strategy on track. In the case of missed sales targets in one specific region or store, inventory strategies based solely on math algorithms might sense a forecast error and recommend short-term fixes such as shifting products within the supply Obviously this is an expensive proposition, especially in today’s environment of rising logistics costs.

Instead, best-in-class businesses have instituted a continuous process in which issues like regional sales declines due to poor stock management are not only addressed in the short term, but also eliminated in the longer term through an exhaustive root-cause analysis.

Drilling down through the supply chain, inventory strategists work to understand the reason for a local drop in sales by asking such questions as: What are the unique buying patterns in this region? How do prices and margins compare with other stores or geographic areas? Would a different SKU sell better? Can we shape demand through promotions?

With the advent of sophisticated modeling and analytics tools, inventory managers are also better equipped than ever to anticipate demand changes before they occur, and adjust inventory accordingly. By gathering data and insight from across the global, end-to-end supply chain, leading businesses can quickly sense and respond to changes in consumer behavior that are likely to have a significant impact on inventory levels.

For example, the swift and unprecedented drop in demand for high-tech consumer products in 2008 caught many suppliers unprepared. Saddled with high inventory levels and associated carrying costs that significantly eroded their gross margins, these businesses, as a result, will face long-term financial challenges. Not only did they lose money in the short term, but they will also have a hard time supporting the product innovations, consumer promotions and other initiatives that support future success.

For many businesses undertaking the challenge of inventory management, the journey ends at generating optimum inventory targets — and checking performance against these targets once or twice a year.

Is Inventory Optimization an Unending Pursuit? (Part 2)

Defining a strategic supply chain strategy starts by addressing these key issues.

ERP Software

Is Inventory Optimization an Unending Pursuit? (Part 2)

Product segmentation. Most businesses today have recognized the 80/20 rule and are making some attempt to distinguish the inventory needs of their significant few products versus the trivial many. In today’s increasingly diverse global markets, product segmentation must be even more sophisticated, taking place at a new micro level that dissects the entire portfolio by each product’s significant characteristics across multiple dimensions. In a diverse marketplace, segmentation cannot be merely an act of simplifying or modeling assumptions. It should instead focus on developing an increasingly greater understanding of how to serve individual customers and market segments in a way that is consistent with both top-level business goals and worldwide supply chain constraints.

Inventory Levels. Following the economic downturn of the last several years, no one is debating the importance of risk minimization. For every product segment and customer channel, companies need to determine the right supply chain strategy to deliver consistently high service levels while also minimizing their financial exposure. In working to balance service and cost levels, it is critical to remember two important facts: (a) there is no single math algorithm that works for every business, segment and channel; and (b) calculations must always consider the total landed cost of inventory — including transportation expenses, handling charges and holding costs — which can change dramatically and swiftly in today’s volatile environment. Businesses must also consider more subtle costs such as channel liabilities.

Customer demand. Inventory strategists should always bear in mind this simple fact: Everything begins with the customer. Today, supply chain leaders are working hard to understand and interpret actual buying behaviors, using enterprise resource planning (ERP) historical transaction data and point-of-sale (POS) data to generate individual customer profiles. Based on this real-world insight, the supply chain posture can be aligned with unique customer expectations.

Postponing inventory decisions. Based on these specific customer insights, businesses can postpone their inventory decisions to place the right amount of inventory at the right level in the supply chain to meet each customer’s expectations for service levels and timely delivery—while also minimizing overall inventory costs and financial exposure. Given today’s volatile economic climate, postponement remains an extremely important strategy to minimize risk across the supply chain.

Replenishment strategy? There is proven value in lean and just-in-time replenishment strategies but these initiatives cannot be pursued in isolation, especially in an era of rapidly fluctuating transportation costs. The businesses that are succeeding in this volatile economic climate are balancing low inventory goals and fast delivery targets with a range of alternative replenishment strategies that consider total landed costs — including en-route transportation charges, as well as warehouse handling expenses — and create the best overall results for the supply chain as a whole.

Answering these five critical questions will help organizations adopt the right inventory policies and processes that address customer needs and supply constraints, while minimizing risk. Taken together, these inventory practices comprise an overall supply chain posture that positions the business for long-term success.


Core BackOffice Systems and FoxTrot Software Form a Strategic Alliance That Will Allow Their Products


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Core BackOffice Systems and FoxTrot Software Form a Strategic Alliance That Will Allow Their Products To Interface and Share Data

San Diego, CA (PRWEB) October 20, 2006

Core BackOffice Systems and FoxTrot Software form a strategic alliance that will allow their products to interface and share data. Their software solutions will provide an entire, integrated solution for financial industry companies looking to automate their business.

Core’s Document Management System and Task Management Workflow System will be able to share data with FoxTrot’s Compliance Commission system. For example, this will allow Core BackOffice’s Document Imaging System to reference detailed FoxTrot client information when indexing documents for proper storage. In turn, FoxTrot system users will be able to reference all of the digital documents associated with each individual account. This will save valuable time, improve customer service, and reduce clerical errors for businesses that use both systems.

FoxTrot Software, based out of San Diego, is a leading-edge developer of Broker Dealer Back Office Management Software. Their system provides comprehensive compliance, commission and product management features. FoxTrot also gives brokers online access to review, print or download a variety of reports including their Commission Statements, Client Lists, Production Reports and Consolidated Client Account Position Reports. The latest addition to online access allows brokers to interactively fill-out any PDF form online with their existing client data.

Core BackOffice Systems is a San Diego based technology firm specializing in custom software creation, IT consulting, and hardware manufacturing. Core s software solutions offer complete document imaging capabilities, secure client database records, job ticketing – workflow tracking, and reporting features. Core BackOffice s web distributable solutions are built on the latest Microsoft.Net technology, and are priced substantially lower than other software industry competitors.

Core BackOffice’s clients range from small business offices to large sized corporations. Core currently provides business-wide enterprise software solutions to the Financial Broker Dealer, Insurance, Banking, Mortgage, and Legal industries. Core BackOffice Systems can be reached at (858) 613-1393 or on the web at http://www.corebackoffice.com .

For more information please contact:

Cliff Haskins, VP Sales and Marketing

Core BackOffice Systems, Inc.

11956 Bernardo Plaza Drive

San Diego, CA 92128

(858) 613-1393, x802

FoxTrot Software Systems, LLC

560 N. Coast Highway 101


ERP India, ERP Software Development Company, ERP Companies in India, top erp software vendors.#Top #erp


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Customized Cloud hosted ERP solution from ACGIL is suitable for all sized manufacturing companies.

Online ERP for Construction by ACGIL is a reliable business management software that caters.

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Fully integrated supply chain management software to manage supply chain planning, inventory.

Calibration / Testing Labs

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Buying House / Agencies

Cloud ERP solution for buying house and agency that provide alerts for Time Activity (TnA), generate.

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Online CRM software is an integrated system that manages sales and marketing relation, QC services.

Solid, Liquid/ Hazardous Waste Mgt. ERP

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Application Development

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E-Commerce

ACGIL offers professional Ecommerce website development and Ecommerce web portal development solutions across the globe. The Internet online shopping sector are growing at a fast speed and with the start.

Search Engine marketing, or SEM, is a form of Internet marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs). According to the Search Engine Marketing.

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Since its inception in the year 1993, ACGIL has recognized as top-most name engaged in providing ERP and CRM solutions to the small, medium and large enterprises. Established with the corporate office in NOIDA and head office in New Delhi, India, ACG Infotech Ltd. has set its target of being acclaimed among all industry verticals based across the globe. Being renowned as one of the best ERP software companies across the industry, the company has placed its footholds in the market with the vision of rendering reliable and focused services that helps businesses in creating influential administration in an organization.

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Project Management War Stories #pm #war #stories, #pmwarstories.com, #project #management #war #stories, #project #management, #project


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Small and medium enterprises (SME) typically are lean, agile organizations. On one hand, functional managers of SMEs often wear multiple hats and are focused on executing the day-to-day operations to ensure their organization’s survival. On the other hand, the executives of SMEs are charged with creating a strategic vision and executing on that vision to ensure the long-term viability of the organization. And oh by the way depending on the size of the organization, the executives may also be working in the trenches as well to maximize the chances to achieve success.

Like their larger brethren, success requires SMEs to be able to not only articulate the strategic goals of the organization, but also to capture and implement them at all levels of the enterprise to ensure that all projects, not matter how small or large, are aligned to the enterprise’s overall strategy. The lack of a middle management layer in SMEs, however, often means that there is no one in the organization to help translate the vision of the executives into operational terms so that the entire enterprise and all of its projects (i.e. tactical activities) are working in concert to achieve the same common set of goals.

Strategic management offices (SMO) represent one approach to help SMEs align their tactical operations with their strategic planning, bridging the gap between the operations management and the executive suite while optimizing resource management and minimizing waste.

In this episode, we will examine what makes strategy implementation so difficult in SMEs, what is an SMO, and how does an SMO differ from a project management office (PMO).

To do this, Wayne Thompson sits down with his friend and colleague, Michael Kamel. who will be sharing his insights and war stories on aligning operational activities with strategic planning in small and medium enterprises.

1. The opening of the show – “Highlight Reel”

2. The closing of the show – “Redondo Beach”

Tags: Deloitte, Michael Kamel, operations, PMI, PMI Montreal, PMO, project management, Project Management Institute, Project Management Office, project office, Small and Medium Enterprises, SME, SMO, Strategic Management Office, strategic planning, Wayne Thompson

In this episode, I share three principles that have helped me throughout my career.

Let’s face it, as project managers time, scope, and budget are often much easier to manage than the people associated with our projects. How effective your people skills are, can impact the fluidity and success of a project. So here’s 3 principles to keep in mind during your next project.

  1. Never eat at a place called mom s ;
  2. Never play poker with a man named doc ; and
  3. Never get into a fight with someone who has more scars than you .

I hope you enjoyed these principles and encourage you to share your own principles by posting comments below or emailing them to pmwarstories(at)gmail(dot)com.

Music Notes
1. The opening of the show – “Torn Jeans”
2. The closing of the show – “Lazy Day”

Tags: best practices, Doc, Guiding Principles, Mentoring, Mom’s, Nelson Algren, people skills, project management, project success, Salty Dogg, Scars, soft skills, Stakeholder Management, Stakeholders, Wayne Thompson

March 19, 2011

In this episode, I’m sitting down with my friend and colleague, Mel Bost in part two of a two part series on project lessons learned.

Mel has over 30 years of project management experience and authors the blog Mel Bost PMO Expert which summarizes successful behaviors of project managers working in a PMO setting as well as the structure and actions of a real PMO. Today Mel will be sharing his experiences and insights on the project lessons learned.

Music Notes
1. The opening of the show – “Catwalk”
2. Interview with the industry insider – “Wild Card”
3. The closing of the show – “Lazy Day”

Tags: best practices, lessons learned, Mel Bost, PMO, project management, project management office, project milestones, project office, stage gate, Wayne Thompson

February 25, 2011

In this episode, I’m sitting down with my friend and colleague, Mel Bost in part one of a two part series on project lessons learned.

Mel has over 30 years of project management experience and authors the blog Mel Bost PMO Expert which summarizes successful behaviors of project managers working in a PMO setting as well as the structure and actions of a real PMO. Today Mel will be sharing his experiences and insights on the project lessons learned.

Music Notes
1. The opening of the show – “Highlight Reel”
2. Interview with the industry insider – “Sprightly”
3. The closing of the show – “Yearbook”

Tags: best practices, lessons learned, Mel Bost, PMO, project management, project management office, project milestones, project office, stage gate, Wayne Thompson

January 13, 2011

In this episode, I’m sitting down with my friend and colleague, Mel Bost in part two of a two part series on innovative approaches to successfully define business requirements.

Mel has over 30 years of project management experience and authors the blog Mel Bost PMO Expert which summarizes successful behaviors of project managers working in a PMO setting as well as the structure and actions of a real PMO. Today Mel will be sharing his experiences and insights on the power of design thinking.

Music Notes
1. The opening of the show – “Kickflip”
2. Interview with the industry insider – “Sprightly”
3. The closing of the show – “Yearbook”

Tags: best practices, business requirements, design thinking, innovation, Mel Bost, new product development, NPD, PMO, project management, project management office, project office, stakeholder management, Wayne Thompson

December 30, 2010

In this episode, I’m sitting down with my friend and colleague, Mel Bost in part one of a two part series on innovative approaches to successfully define business requirements.

Mel has over 30 years of project management experience and authors the blog Mel Bost PMO Expert based on his own experiences in developing and maturing PMO organizations with several major Fortune 500 companies. Mel’s blog summarizes successful behaviors of project managers working in a PMO setting as well as the structure and actions of a real PMO. Today Mel will be sharing his experiences and insights on taking innovative approaches to successfully defining business requirements, including the power of design thinking.

Music Notes
1. The opening of the show – “Collins Avenue”
2. Interview with the industry insider – “Offroad”
3. The closing of the show – “Yearbook”

Tags: best practices, business requirements, design thinking, innovation, Mel Bost, new product development, NPD, PMO, project management, project management office, project office, stakeholder management, Wayne Thompson

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ERP System Guide #benefits #of #an #erp #system


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What is ERP software and how can it benefit your business?

Enterprise Resource Planning (ERP ) is a term applied to integrated software systems used to manage the internal and external resources of an organization. These include the physical assets, financial resources, materials and human resources (or staff).

Benefits of ERP

Implementing a good ERP application will deliver key benefits including:

  • integrated business processes
  • one central database with no duplication of data
  • a single ‘view of the truth’
  • easy-to-use, powerful reporting across the whole suite (and therefore the whole organization)
  • the same look-and-feel across the whole system, making training and using the ERP very straightforward.

Drawbacks with ERP

Buying and implementing ERP can be expensive and time consuming, with many high profile examples of issues with projects going significantly over time or budget, or both. The largest players in the market have developed a reputation for needing huge resources including external consultants to implement an ERP system and get it working, not to mention the cost of making changes to the system or simply maintaining it.

About Unit4

Unit4 is a leading provider of enterprise applications empowering people in service organizations. With annual revenue of over 600M Euro and more than 4200 employees worldwide, Unit4 delivers ERP, industry-focused and best-in-class applications. Thousands of organizations from sectors including professional services, education, public services, not-for-profit, real estate, wholesale, and financial services benefit from Unit4 solutions. Unit4 is in business for people.

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It outsourcing #r.p.,rp,piccin, #outsourcing, #vision, #erp, #hosting, #gestionali, #kerio,control, #connect, #panda, #antivirus, #macrium, #backup, #hardware,


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Il consulente informatico di fiducia per le imprese di successo

Consulenze e servizi informatici in outsourcing professionali con consapevolezza strategica d’investimento per le Aziende business che hanno saputo e vogliono sistemi informatici adatti alle loro esigenze.

  • Sviluppiamo e gestiamo Intuizioni innovative.

    We Add Strategy for you

    Strategia dell’informatizzazione con soluzione hardware, software e di sicurezza informatica nel creare stabilità, performance e semplicità.

  • Le vostre Esigenze sono i Nostri Obiettivi

    for your success

    “L’informatica è la scienza esatta degli errori”. Su questa massima plasmiamo il nostro KnowHow per non incorrere nelle molteplici “distrazioni” informatiche. Per noi l’obiettivo è il risultato finale nella soddifazione del Cliente.

    Vendiamo piattaforme informatiche Server, Desktop, Notebook, Tablet e periferiche dei maggiori Brand Internazionali.
    Per la connettività Lan e ADSL abbiamo diverse tipologie di hardware in base alle esigenze, specifiche aziendali e di connessione.
    Progettiamo e realizziamo piattaforme “AdHoc” con esperienza maturata nella collaborazione con Partnerships di Brand storico, del mondo hardware.

    Vendiamo software per Office Automation, Gestionali Amministrativi, ERP, Sistemi di Server Aziendali, Protezioni informatiche, di Backup, di gestione Email integrata e centralizzata. Abbiamo realizzato con soddisfazione dei Clienti molte soluzioni “AdHoc” personalizzate, indipendenti e interattive con altre basi dati esistenti.

    CUSTOMER CARE

    Servizi di assistenza professionali
    – manutenzione hardware/software direttamente presso il cliente
    – assistenze tecniche su chiamata
    – manutenzione del sistema operativo con aggiornamenti sicurezze, protezioni sia OnSite che in Remoto
    – Fornitura di hardware sostitutivo sino a riparazione del guasto
    – rimozione virus, spyware e altre minacce

    Interveniamo su semplice chiamata, su contratto di outsourcing o di semplice manutenzione, presso la sede del cliente e in remoto.
    Abbiamo attivato un canale diretto, RSSS Remote System Service Support dove inviando un sms o una richiesta tramite la chat del sito, o direttamente al nostro email di Supporto ; in breve sarete contattati dal tecnico di fiducia che vi segue.

    MANAGEMENT

    Gestionale Amministrativo semplice da imparare, da utilizzare e con funzioni di ERP e CRM. Costi sostenibili nella manutenzione e nell’aggiornamento e soprattutto contatti immediati ed effettivi con il tecnico di fiducia. Con esperienza ventennale e con PartnerShip certificate siamo lieti di offrire soluzioni diverse e modulari nel coprire le esigenze di business dell’Azienda.

    Un’azienda competitiva nel mercato è sempre dotata di una struttura informatica efficace.
    Realizziamo “chiavi in mano” piattaforme informatiche performanti, Server Aziendali, Server di Posta, soluzioni di Backup automatici e schedulati, Protezioni informaticheonCloud per gli uffici e per la mobilità aziendale. Innovative soluzioni delle grandi aziende che rendiamo disponibile per le PMI, Piccole Medie Imprese nella stessa professionalità ed efficacia.

    Per le aziende di business la posta elettronica è diventata fonte essenziale d’informazioni stategiche per il business aziendale. La normale gestione delle email non è più sufficiente; le informazioni, i contatti e gli impegni devono essere suddividi in team di lavoro. La sicurezza di tali informazioni è fondamentale. Questa esigenza viene affrontata con efficacia tramite la nostra soluzione di MailServer certificata da anni di PartnerShip.

    Gli attacchi informatici, di pirateria e di furto nelle Aziende sono sempre più frequenti. Possono venire dall’interno o dall’esterno mentre si ricevono email o si naviga in internet. Le nostre soluzioni a livello internazionale permettomo di controllare, proteggere sia la struttura interna che le unità mobili degli agenti o tecnici che per esigenze operano esternamente. Le porte USB, i tablet, i scanner ecc. sono diventati oramai strumenti di pirateria e furto delle informazioni. Le soluzioni di Firewall forniscono permission specifiche alla navigazione in internet / intranet per gruppi/utente/device salvaguardando l’operatività, l’efficacia delle ore aziendali e la sicurezza della piattaforma.

    KerioControl firewall Web Filter

    Il firewall aziendale IPS/IDS, VPN, Web Filter produttivo

    icon Supporto Tecnico

    THE HELP YOU NEED when you need it most

    Un supporto efficace, rapido e immediato all’esigenza senza tempi di attesa. Il settore assistenza della R.P. si è evoluto con tecnologie e strumenti atti a fornire il servizio rapidamente e indipendentemente da dove si verifichi la problematica. Che sia all’interno della struttura aziendale, o su una filiale o su un notebook in viaggio anche all’estero. Nessun problema se poi il tuo tecnico è in trasferta. Nella stessa semplicità possiamo connetterci a tutte quelle realtà non presidiate quali: server, elaboratori di controllo, centraline. E’ sufficiente essere connessi ad internet per poter ricevere il supporto tecnico.

    icon RSSS Remote System Service Support

    Assistenza remota, rapida, facile, comoda e sicura.

    Per ricevere l’assistenza desiderata il Cliente non deve preoccuparsi di investire denaro e tempo in apparecchiature informatiche dedicate o di configurare firewall. Una telefonata al Customer Care o una email al nostro servizio di supporto è sufficiente per ottenere l’assistenza e una guida attenta alla vostra esigenza. In poco tempo avrete il vostro tecnico che vi guiderà e risolverà per voi l’esigenza. Il tutto in rapidità e tranquillità con i massimi livelli di sicurezza e di crittografazione certificati, con la sessione registrata se desiderato.
    Le nostre connessioni di assistenza remota sono stabilite attraverso dei canali di dati completamente crittografati, che si avvalgono della sessione con codifica 256 bit AES, 1024 bit RSA Key Exchange.

    icon Competenza Know How

    Reinvestiamo molto del successo in aggiornamenti e ricerche.

    Riteniamo necessario essere sempre attenti all’evoluzione del settore informatico e per questo investiamo gran parte delle risorse in focus, corsi ed esami di certificazione. Questo ci permette di essere consapevoli dei tempi di applicazione, della fattibilità e della certezza di mantenimento del servizio che verrà fornito al Cliente. L’informatica è la scienza esatta degli errori e su questa massima fondiamo il nostro Know How, perchè solo conoscendo gli errori si possono evitare.
    . l’evoluzione non attende nessuno e restare indietro significa perdersi.

    icon Investimento Strategico

    Il Partner di fiducia come investimento vantaggioso.

    Affidarsi ad una unica azienda che assista e faccia crescere la tua in sicurezza e produttività diventa una mossa strategica, un investimento che fa risparmiare e incrementa la produttività. I tempi di intervento si riducono drasticamente ed una manutenzione e controllo programmato mantengono il sistema efficace e durevole.
    Oramai nessuna realtà produttiva può rimanere ferma per ore o giornate, sono costi insostenibili sia di denaro che di operatività stategica che l’Azienda di business deve evitare.


  • Open Source ERP solutions and CRM DMS POS #erp, #open #source #erp, #erp #solutions, #erp


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    Experience a never-before ERP/CRM User Experience

    • First Open Source ERP/CRM product with HTML5 UI
    • Diverse Functionalities to suit YOUR business
    • Responsive and fast UI increase productivity
    • One application run on all browser and device
    • Remote deployment, rapid implementation

    Find out more Try Cloud ERP

    VIENNA Advantage Business Intelligence (BI) Solution is different!

    • Monitor your business at a glance with personalized, interactive dashboards
    • Collaborate and make collective decisions with your data
    • Web and Cloud based BI software system
    • Accessible from any mobile device

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    VIENNA Point of Sale (POS) Use your POS terminal from anywhere in your store

    • Runs on all devices and OS, Cloud Option
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    • Complete supply chain integration
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    VIENNA Advantage FRAMEWORK

    • Ready to use custom business application development platform
    • Quick development and remote development of custom applications
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  • Cloud ERP One Software to run your entire business

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    ERP Software Cost Comparison: On-Premise, SaaS, and Hosted

    Overview

    This article presents costs associated with different ERP software deployment scenarios. The numbers presented in this article have been gathered by averaging quotes provided by 2-3 different ERP and hosting service providers.

    ERP Software Purchasing and Deployment Options

    The Cloud has inspired a new way of thinking about ERP software deployments. Companies have the option to purchase a license or purchase a SaaS solution. When purchasing a license you own the software and have the ability to deploy it in your datacenter (on-premise) or outsource operations to an external provider (hosting). When you purchase a SaaS solution (sometimes called an on-demand solution), you rent a complete turnkey package that includes software and the entire delivery mechanism.

    This article will examine the financial ramifications of these three models on your business.

    Small Customer Licensing

    With a very small deployment scenario, the cost of licensing the software is $20,000 and the cost of one year of SaaS is $16,000. The resulting chart (on the left below) shows that a SaaS deployment can provide lower costs in year one, but after 2-3 years of service, the hosted model can be less expensive in terms of total out-of-pocket money.

    By looking at the graph, you would conclude that you should never purchase a software license and try to build your own infrastructure. However, in some scenarios (for example you are are running a point-of-sale terminal that needs to connect to your server) an on-premise deployment makes sense because you may not want to rely on an external Internet connection.

    Mid-Sized Customer Licensing

    For mid-sized businesses, we increased the cost of the license to $50,000 and the cost of SaaS to $40,000 per year. The resulting chart (above on the left) shows that the break even point for SaaS versus hosting occurs sooner (around year 2). In year 5 the cost of SaaS approaches the cost of a license plus internal infrastructure. These changes occured because the cost of the fixed license and recurring SaaS payments increased proportionately while the infrastructure cost remained relatively fixed. We observed a proportionate increase in SaaS and license pricing by comparing specific customer proposals from SaaS and license vendors.

    Even though we increased the cost of hosting to $500/month, the cost of paying for 1/5 of an IT person to maintain the server, operating system, and software application caused the on-premise deployment to be more expensive than hosting over the long run.

    Review of Assumptions

    Cloud-based and Web-based Software

    As previously reported, there has been significant discussion judging the merits of hosted ERP versus SaaS. In this comparison, we assume that the same software can be run as SaaS or deployed on-premise. This means that we are not considering the scenario where legacy client-server software is being hosted on the web along with VPN software, hosted desktops, etc.

    We assumed that the software was web-based so client upgrades are not required.

    Relationship between SaaS and License Pricing

    The cost of the SaaS annual fee compared to the cost of the software license is critical to the analysis. For this analysis we used the following rule-of-thumb:

    SaaS annual price = (2/3) x (Cost of license + One year maintenance)

    This approximation accurately represents actual market data provided by SaaS providers and on-premise license providers. In both cases, the cost per user (when applicable) is reduced as more users are added at approximately the same rate. Also in both cases, the addition of modules increases the cost.

    Other Assumptions

    • Calculations did not include NPV calculations.
    • Hardware and software costs for an on-premise deployment are similar for small and mid-sized customers. This equals approximately $15,000 for the deployments shown. This does not include off-site backup storage.
    • Maintenance fees are 20% per year of the license costs. In the hosting scenario, maintenance covers only the application, in the on-premise scenario the maintenance costs cover the application, OS, and database software.
    • Configuration, training, and data migration fees are equal across all three deployment models. We used a 1:1 ratio of license cost to consulting fees for this analysis.
    • Customization fees are not included, but would be equal across all models.
    • Application support is not included, but would be equal across all models.
    • For an on-premise deployment, power and replacement server parts were assumed to cost $1,000/year.

    When is SaaS Better?

    Businesses benefit from SaaS when they do not have IT resources to dedicate to installing and managing applications. Even in the hosted scenario, some level of IT expertise is required to install application upgrades. We assumed upgrades occur two times per year and require approximately 5 hours to install. As a result of this assumption, we budgeted $1,000/year for application upgrades in the hosting scenario. In all cases we assumed that the application was web-based so no client software upgrades were required.

    Break Even for Mid-Sized Businesses

    By lowering the SaaS cost by changing the SaaS rule of thumb (discussed earlier), we computed a break even point over a seven year deployment. Holding other assumptions steady, the break-even occurred when the cost of the SaaS annual fee is approximately 1/3 of the cost of the license plus one year of annual maintenance. So, if your only concern is out-of-pocket expenses, the option to purchase a $50,000 license + hosting + maintenance is roughly equivalent to a $20,000/year SaaS license.

    Adding Cost of Capital

    ** section added May 2 **
    After publishing this article, I received several requests to include the cost of capital in my calculations. Adding a cost of capital has the following impact on the different models:

    • SaaS expenses are deferred, so the model becomes more attractive as the cost of capital goes up.
    • Hosted the license cost is paid upfront, but some costs are deferred, so the benefits are less than with SaaS
    • On-Premise the on premise model contains the most upfront expenses as well as significant ongoing IT expenses that paid over time. As the cost of capital increases, the upfront costs are not impacted, but the impact of the ongoing IT costs is reduced so that the overall benefit is higher than hosted but less than SaaS.

    Cost of Capital Impact on ERP Analysis

    With ERP software there is a significant amount of upfront analysis, consulting, configuration, testing, and training, so the impact of the cost of capital is less than it would be for simple software applications. The graphs below show the impact of making adding a 3% and a 15% cost of capital to the analysis. This was done by discounting the future payments to reflect the time value of money.

    The analysis doesn t change dramatically for the 3% case, but when the cost of capital is assumed to be 15% and higher, the SaaS solution will always be less expensive than an on-premise solution. At 15%, the breakeven between SaaS and hosted shifts by a few months in favor of SaaS.
    ** end of May 2 section **

    Conclusion

    This article addressed costs, but costs are only one part of the deployment equation. Your deployment model should be based on your level of IT expertise, your comfort level with outsourcing, the strength of your Internet connection and tolerance for downtime, and the timing of expenses.

    As your business changes, your business requirements change. Company size, IT expertise, legislation, risk, programming requirements, and other factors will influence your SaaS versus on-premise deployment over time. You should partner with a provider that offers a choice of license and SaaS deployments so you can switch your deployment as your requirements change.

    Contact us if you would like to receive a copy of the spreadsheet used to generate these graphs.

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