ERP User Count: Choose wisely to save a ton of money

The first step to determine software cost is to decide the num-ber of people (or users) that will need access to the system.

Remember, this can include people who may be outside the accounting department. For example, salespeople who man-age orders may need access to look at invoices or purchasing history.

People in the shipping area may need to see whether a particular order is paid and ready to be shipped.

A good software partner will guide you through this process and help you determine what type of access is needed by different users.Of course, the fewer users you purchase access for, the lower the price.

Is the ERP software sold by user-based pricing or module-based pricing?

User-based pricing means you will pay one license fee per user, which includes access to all modules in the system.

Module-based pricing means you buy the functionality you need (general ledger module, accounts payable module) on an a la carte basis, plus a small per user fee.

If you only need very limited functionality, both now and in the future, buying a module based system can sometimes save you money.

For most companies though, user-based pricing is often a better value and a better investment because you get more for your money.

How to determine Total ERP Software Costs.

10 Questions to Ask Any ERP Vendor.

Besides the license fees, there are many other factors you need to consider when evaluating the total cost of owning an ERP system. Here are the key questions to ask:

1. How much is the license fee?
2. Does the licensee fee include all modules or will I have to pay for add-on modules?
3. Does the ERP system require expensive database licenses (Oracle, SQL, etc)?
4. Will we need expensive servers and server maintenance contracts?
5. Will we need to hire/contract a database administrator?
6. How is the maintenance contract calculated? As a percentage of the software license and the implementation fees, or JUST the license?
7. Is support included in the maintenance contract?
8. How much of my time will it take to install, setup and customize the system?
9. Is setup and implementation included in the price or will I have to pay extra for that?
10. Will we need to hire/contract an IT resource to update/maintain the system?

Benefits of a Good ERP Software Partner

A good partnership will mean a smooth implementation, comprehensive training and ongoing support by a profes-sional team you enjoy working with.

Some ERP Partners do a good job of selling, but fall asleep at the wheel when it comes to installation.

So, how can you be sure you are choosing the right company for your business?
You need to do your homework to find the best Partner for a solid, long-term relationship in all areas.

Choosing the right company to install, implement, support and train you can make the difference between the success or failure of your project.

SQL Server Operating System: Pros and cons of FREE

In most cases, you need a SQL server operating system on your server. This might be included with your new server purchase, or you may need to purchase it separately.
Keep in mind that you need the same number of SQL licenses as you have accounting software user licenses.

We recommend that you budget to buy a few additional SQL licenses because some reporting tools in your accounting sys-tem will require a SQL license too.

Many people ask about the free version of SQL called MSDE. This may be an option, but you should know that MSDE has two limitations.

1. First, there is a data size limitation based on your transaction volume in the accounting system. There is no magic formula to determine how much space you will need for your system.

An experienced Partner should help you deter-mine what database size will work for your unique situation.

2. Second, there is a lack of administrative mainte-nance tools for MSDE. If you have a problem with the MSDE database, it can be harder to fix, and you know what that means – more support costs.

TO SAVE :
You can always start with the free MSDE version of SQL to minimize upfront costs, and upgrade to the full version of SQL later.