ERP Pricing Models

ERP vendors don’t make it easy to calculate the cost of using their system. There are lots of variables to consider including: License – buy a perpetual license to use the software Hosted – annual or monthly fee to use the software by user Named user – for anyone needing any access to the system Concurrent user – for the number of people needing access at the same time Full users – need multiple parts of the system such as a purchasing manager Light users – need limited use of the system such as someone that just creates requisitions or […]

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Oracle in the Cloud

According to IDG News Service, “Oracle is now the industry’s second-largest SaaS vendor after Salesforce.com” As well, “Oracle is also seeing traction increase for its cloud ERP (enterprise-resource-planning) software, adding 120 new customers in the fourth quarter alone”. This was news to us, so I contacted Oracle directly to get the inside scoop on their ERP cloud offering. Oracle Fusion has been rebranded as Oracle ERP Cloud and there are a couple of hundred implementations across North America with many new opportunities keeping the Oracle sales team hopping. Oracle ERP Cloud is so far targeted to organizations providing professional services, […]

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Cloud Users Spend Less, Spend Smarter on IT

February 2014 from computer economics – “…The study finds that organizations fully utilizing cloud computing save on average more than 15% in IT spending, whether measured as a percentage of revenue or on a per-user basis, as shown in Figure 2 from the full study.  Detailed analysis of respondents’ IT spending mix shows that the savings come not only from a reduction in data center spending but also in IT personnel costs. As a result of these economic efficiencies, cloud users are able to devote a higher percentage of their IT spending to new initiatives and less to ongoing support. […]

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ERP Support Requirements Range Widely

March 2014 from computer economics – “…Our study, ERP Support Staffing Ratios, shows the typical range of ERP support staffing ratios for installations of all sizes. At the median, there are 58 users per ERP support staff member, rising to 131 users per ERP staff member at the 75th percentile. At the 25th percentile, each ERP staff member supports just 29 users…” Read more 180 View – A key question in the selection process should be the effort required to internally support the system. It is really hard to get this information from the vendors and references should be asked […]

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Enterprise Software: Suites Don’t Always Win

February 6, 2014 from The Enterprise System Spectator – “The major enterprise software providers promote their pre-built integration as a selling point in capturing new business from existing clients. They argue that, rather than attempting to integrate different systems from different providers, organizations should buy everything from a single provider and get the integration for free…” Read more 180 View – The Enterprise System Spectator continues to be a good source of independent thinking. This article is about ERP vs Best of Breed and there is no winner. […]

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Lesson Learned

Our software selection process includes scripted demonstrations. The first demonstration is based on requirements, takes on average of 3 hours and is used as a way to select two final vendors for a more detailed demonstration based on business processes. The script can be challenging and some vendors would rather perform their usual demonstration sometimes called a dog and pony show. These vendors typically suffer the consequences as our clients will judge them harshly for not following the script. But we did recently experience a case where the vendor did not follow the script very well and our client did […]

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