ERPs are popular for providing end-to-end solutions, with the ERP market projected to reach ~$52bn in 2024.1 However, 47% of organizations faced cost overruns in their ERP implementations in 2023, often due to unclear pricing 2 This article explores ERP pricing models, factors influencing costs, and the pricing structures of 5 vendors.
Pricing of 5 ERP software
| Vendor | Implementation Costs | Customization Costs | Integrations Costs | Training & Support Costs |
|---|---|---|---|---|
Acumatica* | $65.000 – $90.000+ | $5,000 – $50,000 in total | $2,000 – $15,000+ | $2,000 – $10,000 |
Dynamics 365 | Small Business $10,000- $30.000. | $6,000-$26,000** | N/A | $3.500+ |
Netsuite*** | $25,000 – $100,000+ | $150-225 per hour | $0-$3,000+ | $2,500 – $15,000 |
SAGE | Starting from: | $10.000 for custom implementation | Starting from $1,000 (one-time fee) | $300/month+ |
SAP ERP**** | $25,000 – $100,000 | N/A | N/A | N/A |
*The data in the table is extracted from one of Accumatica’s partner organizations.3
**The costs can differ depending on the modules. For detailed analysis, check the table below.
***The data in the table is extracted from one of NetSuite’s partner organizations.4
****SAP mostly offers higher pricing modules that include customization, training, and integration costs. Check out the tables below.5
Table features:
- The ERP software in the table were selected based on their popular use and the breadth of services they offer.
- The vendors are sorted according to alphabetical order.
5 ERP software pricing models
1- Accumatica
| Cost Category | Approximate Costs |
|---|---|
Licence Based | SaaS Subscription: $1,000 – $20,000 per month |
User Licences | Full user: $50 – $200 per user/month |
Modules and Suites | Financials: $5,000 – $50,000 |
Implementation | Consultation: $5,000 – $20,000 |
Hardware | Servers: $5,000 – $20,000+ |
Ongoing Costs | Maintenance: $1,000 – $5,000 per month |
Third-Party Integrations | $2,000 – $15,000+ |
2- Dynamics 365
Due to the comprehensive pricing structure of Dynamics, we have created 3 tables:
- the first table explains the pricing structure only in the Sales industry,
- the second table explains the pricing structure in other industries,
- and the third table explains the pricing structure only in the service industry.
| Sales | Sales Professional | Subsequent qualifying Dynamics 365 app |
|---|---|---|
Sales Professional | $65 per user/month | $20 per user/month |
Sales Enterprise | $95 per user/month | $20 per user/month |
Sales Premium | $135 per user/month | $135 per user/month |
Microsoft Relationship Sales | $162 | $162 |
| Industry | Price |
|---|---|
Finance | Basic: $180 per user/month |
Marketing | From $1,700 per tenant/month |
Supply chain | Supply Chain Management: $180 per user/month |
Project management | $120 per user/month |
Human resources | $120 per user/month |
Customer data platform | Customer Insights: $1,700 per tenant/month |
Commerce | Commerce: $180 per user/month |
| Service | First Dynamics 365 app | Subsequent qualifying Dynamics 365 app |
|---|---|---|
Customer Service Professional | $50 per user/month | $20 per user/month |
Customer Service Enterprise | $95 per user/month | $20 per user/month |
Field Service | $95 per user/month | $20 per user/month |
Field Service Contractor | $50 per user/month | $50 per user/month |
Field Service Resource Scheduling Optimization | $30 per user/month | $20 per user/month |
3- Netsuite
| Cost Category | Price |
|---|---|
NetSuite Mid-Market Edition | Monthly Cost: $2,499 |
User License Costs | For 15 users: |
Advanced Inventory Management | Monthly Cost: $499 |
One-Time NetSuite Implementation Cost | $65,000 |
4- SAGE
| Cost Type | Pricing |
|---|---|
Base Package | Monthly Subscription: $1,000 |
Additional Modules | Advanced CRM Integration: +$200/month |
User Based | Base Package includes 5 users |
Implementation and Training | Standard Implementation: $5,000 (one-time fee) |
Support and Maintenance | Standard Support: Included with the base package |
Data Migration | Basic Data Migration: $2,000 |
Volume of Transactions | Every additional 1,000 transactions apart from base: +$100/month |
5- SAP ERP
| Cost Type | Price |
|---|---|
Business-One Professional | $3,213 each |
Business-One Limited | $1,666 each |
Business-One Starter | $1,357 each |
SAP Cloud Multi-Tenant Professional | $188 per user/month |
SAP Cloud Multi-Tenant Limited | $112 per user/month |
SAP Cloud Multi-Tenant Starter | $110 per user/month |
SAP Cloud Single-Tenant Professional | $219 per user/month |
SAP Cloud Single-Tenant Hosted Limited | $158 per user/month |
SAP Cloud Single-Tenant Starter | $149 per user per month |
SAP Business One Cloud Express Edition PaaS model | Financial Only: |
6 factors influencing ERP Pricing
Software licensing models (perpetual vs. subscription)
ERP software can be licensed either through a perpetual license, where a one-time fee is paid for indefinite use, or a subscription model, where a recurring fee is paid regularly. The choice between these models impacts the total ERP software cost over time.
Number of users and access levels
The ERP cost is influenced by the number of users who need access to the system. Different access levels, such as basic users versus administrators, also play a role in determining the cost.
Customization & integration
The extent to which an ERP system needs to be customized to fit specific business processes and integrated with existing systems affects the overall ERP project cost. More customization and complex integrations generally lead to higher costs.
Implementation & training costs
Implementing an ERP solution involves several costs, including setting up the system, migrating data, and configuring the software to meet business requirements. Training employees to use the new system can also contribute to the implementation costs.
Maintenance & support fees
Ongoing maintenance and support are necessary to keep the ERP system operational and up-to-date. These fees cover regular updates, troubleshooting, and technical support, adding to the long-term ERP costs.
Hosting options (On-premise vs. cloud)
ERP systems can be hosted on-premise, where the organization manages its own hardware and infrastructure, or in the cloud, where the ERP vendor handles hosting. Cloud ERP often involves a subscription-based pricing model, while on-premise solutions may require higher upfront costs for hardware and infrastructure.
5 Types of ERP pricing models
Perpetual licensing
This model involves a one-time payment for indefinite use of an ERP software.
- Advantage: One-time payment for indefinite use of the ERP software can lower long-term costs.
- Disadvantage: High initial investment increases the ERP implementation costs and impacts the ERP budget.
Subscription-based pricing
This model requires regular, recurring payments over time.
- Advantage: Regular, smaller payments make it easier to manage cash flow and ERP costs over time.
- Disadvantage: Total cost may be higher over the long term compared to a perpetual license.
Tiered pricing structures
- Advantage: Different tiers allow organizations to choose a plan that fits their specific needs and scale as they grow.
- Disadvantage: Moving to a higher tier can increase costs significantly, impacting the ERP budget.
Usage-based pricing
This model offers different pricing tiers based on the features and services included.
- Advantage: Costs are based on actual usage, which can be beneficial for organizations with variable usage patterns.
- Disadvantage: Unpredictable usage can lead to fluctuating costs, making it challenging to maintain a stable ERP budget.
Hybrid pricing models
This model charges based on the actual usage of the ERP system.
- Advantage: Combines elements of different pricing models that offers flexibility in managing ERP costs.
- Disadvantage: Complexity in understanding and managing the different components of the ERP pricing structure.
Hidden costs in ERP implementation
Data migration expenses
Transferring existing data into the new ERP system can be time-consuming and complex, adding to the overall ERP cost.
Customization costs
Modifying the ERP system to fit specific business processes, such as inventory management or customer relationship management (CRM) can significantly increase the total cost. (data)
Ongoing maintenance and upgrade fees
Regular updates, technical support, and necessary upgrades involve ongoing costs that contribute to the long-term expenses of ERP solutions.
User training and change management
Training employees to use the new ERP system and managing the organizational change process incurs additional costs, impacting the overall ERP budget.
5 factors to consider with ERP pricing
- Request detailed quotes: Ask ERP vendors for detailed quotes that break down all costs, including licensing, customization, implementation, and ongoing maintenance.
- Evaluate total cost of ownership: Consider the total cost of ownership, including hidden costs such as data migration, training, and upgrades, to understand how much the ERP solution will cost over its lifespan.
- Negotiate terms and pricing: Engage in negotiations with ERP vendors to secure the best possible pricing and favorable terms, potentially lowering the overall ERP implementation cost.
- Check vendor support: Assess the quality and availability of vendor support and services, as poor support can lead to increased costs and disruptions in the long run.
- Evaluate future scalability: Ensure the ERP solution can scale with your business needs without incurring blocking costs for your business for future requirements.
What is ERP software?
Enterprise resource planning (ERP) software serves as a business solutions that allow organizations to manage, connect, and facilitate data flow across various business processes, including:
- Financial analysis
- Procurement
- Accounting & accounts payable
- Supply chain management
- Human resource management
External links
- 1. Enterprise Resource Planning Software - Worldwide | Forecast. Statista
- 2. Budget overruns in ERP implementation projects worldwide 2024| Statista. Statista
- 3. Acumatica Pricing & Costs | Acumatica Price List.
- 4. Ultimate Buyers Guide: April '25 Oracle NetSuite Pricing & Licensing Guide. Techfino LLC
- 5. SAP Business One Pricing | SEIDOR.
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