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4 Easy Tips to Get Cloud ERP with the Lowest Total Cost of Ownership

18 Dec

4 Easy Tips to Get Cloud ERP with the Lowest Total Cost of Ownership

by SMB Suite
in Managed IT, SMB Blog
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With cost management being such an important factor for any small-to-medium-sized business, it’s vital for them to make sure they are aware of all costs related to their cloud ERP system. If they don’t, costs can quickly begin to add up.  Luckily, you can get it under control in a few simple steps. . .

The typical components of most cloud ERP options today include licensing, support, and upgrades. However, a multitude of options arise when it comes to choosing an ERP system from a vendor. Any and all of the following primary aspects of an ERP system can vary from vendor to vendor:

  1. Licensing
  2. Training
  3. Upgrades
  4. Support
  5. Ongoing Maintenance and Services
  6. Data Migration and Implementation

That being said, it can be difficult to find the ideal and most cost-effective vendor/ERP system for your company.

One major thing that helps achieve the lowest total cost of ownership (TCO) is to ask vendors which fees for the above six aspects of their ERP system(s) are going to be recurring and which are going to be non-recurring. In other words, which will be included in a subscription and which will be paid separately.

Typically the more that is offered by a vendor in a recurring subscription will yield the most stable investment and often provides the lowest TCO.

To make a well-educated decision about which ERP solution is right for you, here are four questions to Cloud-ERPkeep in mind:

  1. Do you trust the provider and do they seem reliable? It’s never a bad idea to get references seeing that this is an important investment. If the vendor cannot provide a few references, they may not be very reputable.
  2. What is the length of each vendor’s subscription terms? The longer subscriptions extend the predictability of the expenditures and lower cost.
  3. Which of the six aspects above are included (recurring)?
  4. Is the vendor providing you with a less powerful version? Vendors often offer a less powerful version of the on-premises offering that a company has. This offering will downsize your cloud power. The reasoning behind this is to streamline and allow for a solution to be repeatable for new cloud offers.

These four questions can serve as guidelines for companies to choose the cloud ERP solution with the lowest TCO. There are some other things that a company should do in order to ensure the lowest TCO possible:

  1. Know what you truly need in ERP software. Do you need a fully integrated ERP software or best-of-breed software? Cloud ERP systems with fully integrated ERP software often have significantly lower TCO as opposed to best-of-breed solutions.
  2. Invest in ERP software for the long-term, not the short. The idea behind selecting an ERP is to vastly improve and enhance your business. The investment you are making should be thought of as one that is long term. With that being said, the solution that is cheapest up front may not be the one that yields the lowest TCO long-term. If an offer from a vendor appears to be significantly lower than that of other providers, it should signal a red flag.
  3. Minimize the work your people have to do internally. This will help to minimize future errors.
  4. Make sure to be attentive and persistent when implementing new ERP software. Oftentimes additional costs can come about during the implementation process that are unforeseen. This can hinder or even worse halt the implementation process due to lack of funds. Part of the provider’s responsibility is to help you achieve a better way of doing business and accomplish primary goals. This cannot be done without a well-documented and understood implementation process.

 

Overall it is important to do your research when choosing an ERP provider. In order to get the best results with the lowest TCO, ask questions, invest wisely, consider hidden costs, and choose a vendor/ERP that is right for your company.

Find Your ERP Solution

Topics: cloud ERP

 

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Steve’s been with SMB Suite since 1998 and has been involved with nearly every aspects of the Company’s business as a strategist, professional services executive, cloud solutions architect, and senior consultant. In his current role, Steve is responsible for SMB Suite’s revenue and oversees the execution of ERP, CRM and BI projects for customers across a broad range of industries. Steve combines his expertise in MS Dynamics GP, CRM and other Microsoft products with a strong foundation in accounting and business to identify gaps and streamline customers’ processes. Prior to co-founding SMB Suite, Steve was previously Corporate Controller for MEHLE Behr and, prior to that, Audit Senior for Ernst & Young. Steve holds a Bachelor of Business Administration degree from the University of Texas at Arlington.

Jeremy is responsible for SMB Suite’s technology vision, strategy and implementation and is the architect of the Company’s Dynamics Cloud Platform. Highly adept in every facet of managed services, ERP systems and e-commerce platforms, Jeremy’s expertise spans the implementation and support of business and financial software solutions, as well as the customization and integration of SMB Suite’s cloud ERP technology stack. He holds numerous Microsoft and industry-related certifications, and was primarily responsible for designing the Company’s progressive business services platform in the early days of the Cloud. Prior to SMB Suite, Jeremy served as the financial analyst, systems administrator, and information systems liaison for a $2 billion financial services corporation.

Monty is responsible for SMB Suite’s day-to-day operation and, most importantly, its customers. As a leader, motivator and mentor, Monty creates loyal high performance teams willing to “walk through walls” to accomplish their goals. Prior to SMB Suite, Monty served as President of The Bradshaw Group (TBG), a global distributor, manufacturer, and repair facility for digital printers. In this role, he was the Company’s ambassador to its most important domestic, European and Latin American customers and TBG achieved a best-in-class Net Promoter Score of 74 for its superb customer satisfaction. Prior to TBG, Monty served as the General Manager of Sam’s Clubs three highest grossing U.S. stores and was named Regional Operator of the Year in 1999. Monty holds a BBA in Marketing from Texas Tech University and is an active member of Business Navigators. He has been active in Vistage International, Executives in Action, the Dallas/Fort Worth Retail Executives Association, as well as, A.P.I.C.S., the leading professional association for supply chain and operations management. Monty also volunteers with Hunger Busters and ManeGait, a therapeutic horsemanship organization.

David is a proven financial and information technology professional with expertise in providing business accounting software and computing solutions. He began his career by starting and managing a successful independent consulting practice for several years. He then launched the local systems consulting unit of Ernst & Young’s Entrepreneurial Services Group, leading the office into the hi-tech consulting arena. After successfully developing the unit for Ernst & Young, David founded NextCorp (which became SMB Suite in 2013) to serve the business software needs of clients throughout the US. David has made SMB Suite one of the best cloud ERP providers in the industry. In addition to being a successful entrepreneur and leader, he is a software and technology specialist, holding certifications in various Microsoft and other technologies.