Find Out More About Running Costs For This Popular ERP Solution
Have you heard the one about SAP Business One being too expensive for a small business? There are many myths surrounding SAP that need debunking. One of them is them is how much does SAP Business One cost and whether it’s affordable for your typical SME.
If you’re working in a small business, you probably think that SAP is out of your financial reach. Thankfully, this isn't the case – and there are 60,000 SME customers across the globe that can prove it.
When you start evaluating the cost of SAP Business One there are several factors to consider. Firstly, it’s important to remember that SAP Business One is NOT an entry-level solution. It’s a bona fide Tier II solution that’s really scalable. We have some customers with four users in a single location up to 100s of users in various locations across the globe.
Unlike other applications used by start-ups to manage finance, sales or CRM, SAP Business One is a feature-rich, end-to-end solution that incorporates all these tools and much more. Trust me, you’re getting value for money with this best of breed software.
SAP Business One cost breakdown
The cost of SAP Business One can be broken down into four parts:
- Software Costs
Each user must have their own license to access SAP Business One. A professional license provides you with access to all the functionality in the solution. A limited license is around half the price and is ideal for those who will only need to use certain modules in the solution. Subscription costs for cloud-based users begin from £69 per user, per month*. However, in the cloud, prices depend on the number of users you provide access to. You may also be able to get discounts on large numbers of on-premise license types. It's always best to get in touch to get a specific quote based on your required number of users. You can arrange an online quotation here.
- Implementation Services
An average project can take anywhere from 30 days up to 80 days to complete. It all depends on the complexity of your solution and how long it will take to implement your system. As part of the implementation, all your user training and workshops are completed to upskill your team and help them maximise your investment. SAP partners have their own day rate they charge for these types of services.
- Support and maintenance
If you purchase the software (as opposed to leasing it), you will also be required to pay an annual software maintenance charge – it’s usually somewhere between 20%-25% of the overall cost of your solution. The maintenance contract is important because it allows access to the latest innovations released in patch or major version upgrades by SAP. But, more importantly, it provides ongoing support for any assistance you may need.
Costs here are dependent on how you choose to host your solution. If it’s in the cloud, environmental costs decrease as your user count increases – just like license costs. However, if you’d prefer an on-premise solution, then you need to factor in the costs of purchasing some external hardware.
SAP Business One Cost Roll Up
SAP Business One solutions are tailored around the requirements of individual companies. Roll up costs are dependent on the complexity of your solution, the number of users, user license types and your preferred hosting platform. Say, for example, you required a 20-user solution. By the time you take into consideration all the different factors, you’ll be looking at an initial investment of around £70k. That’s £3,500 per user for the first year. This figure may increase depending on how you’d like your solution to work for you, so it’s always best to get an individual quote.
SAP Business One Return on Investment
I’ve helped implement solutions where a return on investment has been realised in a matter of months. In other cases, it has taken a little longer. ROI depends on what systems you’ve already got in place and existing IT costs. But one thing is certain: as a long-term investment, SAP Business One is a proven tool to help organisations grow, streamline processes and improve productivity – and that’s priceless.
SAP Business One Finance Options
There are several options to help you manage the cost of SAP Business One. By working with our strategic partners, we can help your small business find the most cost-effective and tax-efficient way of funding your next solution. Get in touch today and we’ll tell you how we can help spread the cost of SAP Business One into manageable payments.
*Prices correct July 2018.