Home Blog Why Businesses Need Flexibility in ERP Pricing and Licensing

Why Businesses Need Flexibility in ERP Pricing and Licensing

Ali Jani | August 12, 2019

Is choosing a cloud ERP vendor that provides flexible pricing and licensing the answer for businesses looking to grow cost-effectively? Acumatica’s Ali Jani shares his thoughts on the subject. 

Pricing out a new cloud ERP solution isn’t simple and what you think you understand about the vendor’s pricing will change very quickly over time. The total cost of an ERP system is not always clear as you don’t know much about the vendor’s ERP system nor what things are optional and what’s included. Matching your requirements to modules and features they have requires detailed understanding of your business and the ERP systems capabilities. You’ll also find that many ERP applications are stuck in the dark ages, using pricing structures that purposely confuse buyers rather than encourage transparency, which, in the long run, can subsequently inhibit a company’s growth with licensing and restrictions they never accounted for.

So, how do you find an affordable cloud and SaaS system?

You look for one that offers modern, flexible cloud ERP pricing and licensing practices.

Why flexible cloud ERP pricing and licensing is important

Business growth can be attributed to many things: smart decisions, motivating leaders, customer satisfaction, team effort, and modern technology. This last item in particular can be a game-changing proposition. Technology, in the form of a cloud ERP solution, can be the backbone of your business. It streamlines and automates your financial, sales, customer management, business intelligence, and reporting processes. Deciding to implement cloud ERP is becoming a necessity for succeeding in today’s marketplace.

As you evaluate your cloud ERP options, you should ask yourself some important cost-related questions:

  • Do I want to buy ERP licensing outright or pay a monthly subscription?
  • How does the industry I’m in affect the cost (e.g. a manufacturing or distribution company may need additional functions, such as accounting and financial as well as inventory management, BOM, etc.)?
  • Will my customizations be cost prohibitive?
  • How much will it cost to integrate with third-party software products?
  • How much is the ERP implementation (which is based on complexity, data and transaction volumes, number of external interfaces to support, and more)?
  • Does the ERP solution offer deployment options—on-premise or cloud-based version—and which one do I want/need if it does?
  • How will our team learn the new software and at what cost?
  • And is there a consumption-based cloud pricing option?

Acumatica CEO Jon Roskill discusses Acumatica’s consumption-based pricing structure in a recent post on cloud business vendor practices. He notes:

“[Consumption-based pricing] is based on the computing resources you use, not on the number of users permitted into the system. You’re not required to pay for additional licenses, even when you add casual users, suppliers, and customers to the mix. Instead, we base our pricing on three related factors: what applications you want to use now; what type of license you choose (SaaS Subscription or Private Cloud Subscription); and what your projected level of consumption is based on the volume of your business transactions and data storage. Customers should not have to lose sleep over additional costs limiting their growth.”

This is a critical truth.

Per user pricing limits growth, but if you’re charged for resource usage, then you can expect to provide all (not some) employees with real-time data. They can use this information to do their work quickly and accurately and to make good business decisions. Additionally, having the ability to grow-shrink resource levels and data storage when you need is a huge cost-saving benefit.

Choose your cloud ERP solution wisely

The cloud ERP vendor(s) you evaluate should have answers for you, and these answers should come in the form of options for your unique business requirements.

Deployment options, implementation assistance (by the software publisher or a channel partner), customization capabilities (with low-code or no-code capabilities), an adaptable platform (offering open APIs for seamless integrations), and a system that provides specialized industry editions—these are the features and functionality you should be looking for. And, most importantly, your cloud ERP solution you choose must provide flexible cloud ERP pricing and cloud ERP licensing.

Choosing wisely results in increased efficiency, growth, and profitability.

Our experts at Acumatica are available to answer these cost-related questions as well as to share with you how our consumption-based licensing and sustainable pricing are two of our ten customer rights found in the Acumatica Customer Bill of Rights. Contact them today for more information.

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Chief Product Officer at Acumatica

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