(336) 315-3935

What Factors Affect the Cost of ERP Software?

Written by Laura Schomaker

March 16, 2023

You and your team have decided the edge you need involves implementing an ERP solution at your company. Now the question is, how much is this going to cost you? In order to compare software quotes properly, you need to have a thorough understanding of ERP software costs. What ERP software cost factors affect the overall bottom line of ERP software? Let’s walk through it.

Your Company

Let’s start with your company. How big are you? How many ERP users will you have? With most ERPs, the scale of your company will have a direct effect on your software cost. You also need to consider your industry. Certain industries come with more specific requirements, which can add to costs via customizations. Fortunately, there are also many industry-specific ERPs out there that can give you the right answers for your space without driving up ERP software costs.

ERP Deployment Type

Do you need an on-premise solution because of compliance or regulation issues? Do you want to go with the enhanced flexibility of a cloud-based solution? Or is your ideal ERP somewhere in between? Deciding this will have a direct impact on your overall cost. For most SMBs, a cloud deployment offers a fast and affordable option that ticks all the right boxes without driving up costs or complexity. Going with a cloud-based ERP can also help reduce ongoing IT costs for your organization, as well. (See more on that below!)


Do you have existing solutions you want to leverage in tandem with ERP? The integrations needed to allow your ERP to ‘play well’ with your existing solution can factor into the overall cost. Many of today’s software solutions integrate readily enough via APIs, but additional costs can come up in terms of training or customizations. Your team may need to learn a new workflow, for example, or your ERP solution may need to make a few adjustments to fit into existing workflows built around your legacy solutions.


Your team may need some training to take on a new ERP solution. As discussed above, training can involve knowledge transfer on how workflows need to adjust in response to a new implementation. Training can also involve explaining the value of ERP to your team so that they understand the higher-level goals and impact of the new software.

Many ERP vendors include training as part of an implementation, FYI, so choosing the right ERP vendor can help. Keep in mind, too, that working with the right vendor to find an ERP solution that works well for your company’s specific business needs can help mitigate training costs right from the start. The right ERP will fold right into your organization without too much change and limit impact to the ROI you experience with ERP.

Ongoing Maintenance

If you go with a large-scale, on-prem deployment, you will need a sizable IT team that can oversee the ongoing maintenance of your hardware and software systems. If you select a cloud-based ERP, it’s likely that your vendor will take care of most of that, giving you some serious relief with this cost factor and reducing how much you will really pay for ERP.

Next Steps

Sure, there are some parts of your ERP cost you have no control over. But that doesn’t mean there aren’t things you can do to stay on budget. Our experts share 10 money savvy tips in this free eBook.

You May Also Like…

Why Do Some ERP Implementations Fail?

Why Do Some ERP Implementations Fail?

? This blog explores the critical aspects of ERP systems and their potential benefits, including streamlined operations, data accuracy, cost savings, and improved customer service. Shockingly, between 55% and 75% of ERP projects fail or disappoint, with 80% of customers unsatisfied and 90% seeing no ROI. Discover common causes like poor planning, training, misalignment, and vendor selection.

read more
Stay On Track: ERP Budgeting Best Practices for Maximum Cost Savings

Stay On Track: ERP Budgeting Best Practices for Maximum Cost Savings

Explore key ERP budgeting best practices to maximize cost savings. Learn to plan effectively, choose the right ERP system, manage projects efficiently, mitigate risks, handle vendors, and ensure testing and quality assurance. Discover ongoing monitoring and optimization strategies to maintain budget compliance and achieve successful implementation. Download our comprehensive guide now!

read more
Secrets to Building Effective ERP Teams

Secrets to Building Effective ERP Teams

Without a cross-functional team, your ERP implementation will be more challenging than necessary. Your team can make or break implementation and your ERP solution’s effectiveness in simplifying various processes.
So, what are the building blocks for a winning ERP team? How can you assemble functional team members, and what project stages are necessary for effective implementation?

read more