{"id":10191,"date":"2022-05-04T12:26:53","date_gmt":"2022-05-04T19:26:53","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10191"},"modified":"2025-06-05T11:53:38","modified_gmt":"2025-06-05T18:53:38","slug":"how-much-do-erp-systems-cost","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2022\/05\/how-much-do-erp-systems-cost","title":{"rendered":"How Much Do ERP Systems Cost?"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10192&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Whether you\u2019re brand new on your ERP journey or have been considering implementing an ERP system for a while, one question you can\u2019t escape is: How much does ERP cost? It\u2019s a question you\u2019ll be confronted with at every turn, so let\u2019s break down what\u2019s involved when it comes to ERP price and whether it\u2019s right for you to move forward with enlisting the help of an ERP system.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is an ERP System?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/what-is-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">Enterprise Resource Planning (ERP) system<\/span><\/a><span style=\"font-weight: 400;\"> is a software solution used by businesses to plan and manage daily operations, like supply chain, manufacturing, services, financials and other programs or processes. Core goals of an ERP system include the ability to automate and streamline processes and acquire greater visibility and control into business operations so you can make more informed decisions that affect your top and bottom lines.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The greatest <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/08\/benefits-of-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">benefit to ERP<\/span><\/a><span style=\"font-weight: 400;\"> systems is having one reliable source of truth for your company. With all business areas connected under one system, you can gather real-time data about your operations. This visibility can lead to better communication among departments, reduced costs, decreased downtime, more accurate and thorough reporting, improved relationships with customers and vendors, greater flexibility and overall optimized efficiency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ERP systems are comprehensive solutions that often include key modules, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manufacturing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supply Chain<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inventory Management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer Relationship Management (CRM)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Supplier Management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business Intelligence<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How are ERP Systems Priced?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ERP cost depends on the type of deployment you go with and the breadth of the project. ERP vendors typically use one of two pricing models: subscription plans or perpetual licensing.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Cloud ERP Software<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Many companies choose to purchase a subscription to a <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/08\/what-is-cloud-erp\" rel=\"noopener\"><span style=\"font-weight: 400;\">cloud ERP<\/span><\/a><span style=\"font-weight: 400;\"> service that is managed by the cloud ERP company. Subscriptions are paid monthly or yearly for access to the service. Subscription plans often require companies to have a minimum contract length and come in various tiers with increasing functionality and modules.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Licensed ERP Software<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Companies that want to manage their ERP software themselves on their own servers can purchase a license for ERP software that they can then deploy on their own system. This is a one-time cost paid up-front based on the number of users and level of customization. Perpetual licensing usually doesn&#8217;t include recurring costs like maintenance, support and upgrades.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Much Do ERP Systems Cost?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The cost of ERP software varies widely based on several factors. ERP costs can range anywhere from less than $100,000 to over $10 million. To plan a budget for ERP software, you\u2019ll need to consider the specific requirements your business will need from this solution. Consider the following factors:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Organization Size<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Smaller companies will require fewer people on their licenses and will usually have smaller manufacturing and supply chain operations, which means less complexity when migrating systems. The larger your business is, the more you can expect to pay. Companies can avoid some upfront implementation costs by selecting a cloud deployment, which doesn\u2019t require hardware implementation.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Implementation Complexity<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Larger organizations and sometimes organizations already heavily invested in a different ERP system may require more work and planning to migrate to a cloud ERP system. Hosting ERP software on internal servers also adds a layer of complexity and additional costs.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Required Features<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some businesses may require more features for their ERP system than others, and those additional features and services may result in a higher license or subscription cost.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Customizations<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If a business needs custom features built into their system that are not ordinarily required, it may involve additional development and implementation costs. Businesses should focus on only adding the features they need.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Recurring ERP System Costs<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Keep in mind that there\u2019s more to budget for than just the ERP implementation. In addition to upfront costs, there are ongoing expenses to consider, like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IT Staff:<\/b><span style=\"font-weight: 400;\"> Your ERP system will have to be managed, and an on-premise deployment will require internal IT staff to handle any technical needs that arise.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer Support:<\/b><span style=\"font-weight: 400;\"> While basic support, like knowledge base and email assistance, is typically included in the price of an ERP solution, more advanced support will require additional fees.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintenance and Upgrading:<\/b><span style=\"font-weight: 400;\"> Many on-premise deployments charge additionally for maintenance and <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/07\/erp-upgrade-when-and-how\" rel=\"noopener\"><span style=\"font-weight: 400;\">software upgrades<\/span><\/a><span style=\"font-weight: 400;\">. However, if you pay a subscription-based fee for a cloud ERP deployment, the cost of maintenance and upgrading may already be factored in.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">What is Involved in an ERP Implementation?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Implementation costs typically cover planning and organizing your project, training, prototyping functional areas of your business, installing software, configuring the system, implementing process changes and completing conversions. The complexity of implementing an ERP system will primarily depend on the size of the business and whether the ERP system is a cloud-based subscription or an internally hosted, licensed system. <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/09\/erp-implementation-12-valuable-lessons-learned\" rel=\"noopener\"><span style=\"font-weight: 400;\">ERP system implementations<\/span><\/a><span style=\"font-weight: 400;\"> are always complex to some degree, but these are a few of the main factors that will determine the extent of the migration work necessary.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Requiring additional modules or advanced features<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Needing multiple customizations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether you\u2019re implementing via hardware or cloud deployment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Training\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can likely plan on a software cost ratio of .75:1 to 1:1, however, a ratio of 1.5:1 or 2:1 is not uncommon for more complex or customized ERP initiatives, especially if the implementation will cover multiple sites or companies.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Implementing ERP with QAD<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There\u2019s no straightforward answer on ERP cost without assessing a company\u2019s unique situation and needs. With the level of knowledge and experience at QAD, we can make the <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2021\/07\/working-with-qad-erp-consultants-and-implementers\" rel=\"noopener\"><span style=\"font-weight: 400;\">process of acquiring and implementing an ERP system<\/span><\/a><span style=\"font-weight: 400;\"> smooth, setting you up for the highest level of success possible and streamlining your system setup to give you the greatest ROI we can.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_raw_html]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[\/vc_raw_html][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10192&#8243; img_size=&#8221;full&#8221;][vc_column_text]Whether you\u2019re brand new on your ERP journey or have been considering implementing an ERP system for a while, one question you can\u2019t escape is: How much does ERP cost? It\u2019s a question you\u2019ll be confronted with at every turn, so let\u2019s break down what\u2019s involved when it comes to ERP price and [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":10192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[199],"tags":[773,167,9,2167,1659,2164,2163,1636,2166,2165,230,24,1332,92],"class_list":["post-10191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing-trends","tag-adaptive-erp","tag-business-intelligence","tag-cloud-erp","tag-cost-of-erp-software","tag-customer-relationship-management","tag-enterprise-resource-planning-cost","tag-erp-cost","tag-erp-implementation","tag-erp-pricing","tag-how-much-do-erp-systems-cost","tag-inventory-management","tag-manufacturing","tag-supplier-management","tag-supply-chain"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Much Do ERP Systems Cost? | QAD Blog<\/title>\n<meta name=\"description\" content=\"ERP systems can be a significant investment for a business, and understanding ERP cost is essential in planning for any software transition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2022\/05\/how-much-do-erp-systems-cost\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Do ERP Systems Cost? | QAD Blog\" \/>\n<meta property=\"og:description\" content=\"ERP systems can be a significant investment for a business, and understanding ERP cost is essential in planning for any software transition.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2022\/05\/how-much-do-erp-systems-cost\" \/>\n<meta property=\"og:site_name\" content=\"QAD Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/QADerp\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-04T19:26:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-05T18:53:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2022\/05\/05.04.2022.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Kristin Poulton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:site\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kristin Poulton\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost\"},\"author\":{\"name\":\"Kristin Poulton\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#\\\/schema\\\/person\\\/bc1ae15fb6d7d0b87bb36d1a58f3d476\"},\"headline\":\"How Much Do ERP Systems Cost?\",\"datePublished\":\"2022-05-04T19:26:53+00:00\",\"dateModified\":\"2025-06-05T18:53:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost\"},\"wordCount\":1103,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/05\\\/05.04.2022.jpg\",\"keywords\":[\"Adaptive erp\",\"business intelligence\",\"cloud erp\",\"Cost of ERP software\",\"Customer relationship management\",\"Enterprise resource planning cost\",\"ERP cost\",\"ERP implementation\",\"ERP pricing\",\"How much do ERP systems cost\",\"Inventory management\",\"manufacturing\",\"Supplier management\",\"supply chain\"],\"articleSection\":[\"Manufacturing Trends\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost\",\"url\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2022\\\/05\\\/how-much-do-erp-systems-cost\",\"name\":\"How Much Do ERP Systems Cost? 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