Cost consideration while buying business applications

摘要

"In the ERP/CRM world, the software cost of a solution is usually less than 20% of the total costs. The Total Cost of Ownership, therefore, represents a very important way to compare one ERP/CRM solution to another, because it captures the costs beyond the software cost. So the cost optimization should be applied on the customization, servers, and storage, training and support components. In contrast,rnReturn on Investment (ROI) largely is focused on measuring benefits to see if they exceed the costs of implementing the ERP/CRM system. The major ERP vendors offer 'Pay as you grow' pricing model for their hosted version which would minimize the cost of licenses, infrastructure, maintenance and support though the customization flexibility is limited.