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Which ERP Pricing Option is Right For Your Business?

01/07/2019

When purchasing an enterprise resource planning (ERP) solution, decision-makers must understand how each ERP pricing option can affect their business for both the short and long-term. Understanding the differences in each pricing structure can prevent businesses from overspending as well as increase the ERP system’s return on investment (ROI).

There are two ways to purchase an ERP solution. The first ERP pricing option is a one-time license fee with an annual maintenance fee. This option provides a perpetual use license for the software that allows you to use it as long as you like.

The second ERP pricing option is a subscription or Software-as-a-Service (SaaS) fee that allows you to use the ERP solution as long as you pay the subscription fee.

SAP Business One ERP Pricing Options

Unlike many ERP solutions, SAP Business One can be purchased using either pricing model, For example, a company may choose to implement SAP Business One with the SaaS option deployed in a multi-tenant cloud, or may prefer a private cloud or on-premise server deployment with a one-time licensing fee option.

Learn more: Public vs. Private Cloud – Which Works Best For You?

Our ERP Pricing Option Recommendation

At Third Wave, we believe that the license/maintenance fee option is the best ERP pricing option for all organizations for several reasons:

  1. You gain the flexibility to deploy the ERP software either on-premise, in the private cloud, or a multi-tenant cloud, with the freedom to migrate SAP Business One between deployment options.
  2. Your business owns the software versus subscribing/renting. Even if the maintenance fees are not paid, the company will still be able to use the ERP system and access their data.
  3. After about three years, the license/maintenance fee option becomes increasingly less expensive than the SaaS fees. This is due to the fact that the annualized cost of the one-time license fees and annual maintenance fees drops significantly over time, while the subscription fees for the SaaS model stay consistent or increase year-to-year.
  4. The license/maintenance fee model also makes it easier to work with the ERP partner best aligned to your company’s needs.

About Third Wave Business Systems

Third Wave Business Systems is an SAP Gold Partner, the world leader in ERP software. As North America’s longest-standing SAP Business One partner, businesses trust our experts to implement ERP solutions for both on-premise and cloud ERP deployment models providing in-depth industry expertise every step of the way. Our experts work with you to understand your business needs and goals and to choose the best ERP pricing option for your business.

To learn more about ERP pricing options with SAP Business One, schedule a customized SAP Business One demo with a Third Wave expert today.

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