Microsoft Dynamics SL Pricing

When evaluating a new ERP solution, we realize that one main factor in the decision-making process is cost. How much a new ERP solution cost and what will we get in return?

Implementing an integrated accounting (ERP) system can be a significant investment, and although there are many variables to take into consideration along the way, it can help to have a general idea of what to expect when it comes to cost.

Here are some guidelines you need to consider when looking for an ERP such as Microsoft Dynamics SL

Third-party SoftwareThird-party software products are often available to extend the ERP software or enhance it with applications tailored for a specific industry or specific business process needs. Third-party add-ons typically account for 10% to 35% of the overall software cost.(Note: Dynamics SL typically doesn’t require many add-on products due to its already deep functionality and easy customization tools.)

Number of Users Cost – Since most ERP systems are priced according to the number of concurrent users and the level of access each of these users will require from the system, companies should expect to pay around $2,250 per concurrent user for a professional services organization for example. Additional licenses for “light” users (users only requiring limited access to the system) are usually priced at a few hundred dollars per named user.

Implementation Costs – There are many factors that influence the actual cost of implementation: the company’s industry, the size of the company, the anticipated transaction volume, scope and complexity of the implementation, and the number of third-party integrations, to name a few. Most implementation costs are calculated based on a ratio of software to services. The more the company implementing the ERP system can handle on its own without relying on external vendors, the closer the software-to-services ratio can get to 1 to 1. For most companies of average size and complexity, however, it is more common to see software to services ratios of 1 to 1.5 or 1 to 2.5.

Customizations – Very few ERP systems can be installed and used “out-of-the-box.” Therefore, most companies will require some amount of customization to integrate the ERP software into their workflow. The amount of programming, testing, and training is directly related to the size and scope of the effort.

Admittedly, there are many variables but this should assist companies and organizations who are just starting the evaluation process to understand the factors that influence the cost of their proposed ERP implementation.

For a more detailed discussion about your needs and overall costs, feel free to contact the ERP experts at Boyer & Associates.