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HomeBlogs & NewsERPHow Much Does ERP Cost In Australia?

How Much Does ERP Cost In Australia?

ERP price in Australia

The Cost Of ERP Software In Australia

ERP stands for enterprise resource planning, and it takes care of the entire functioning of an enterprise. It takes care of HR, the financial needs of a corporation, supply chain management, etc. If you have a business organization to run in Australia, you must be wondering about the EPR price in Australia. The cost of EPR in Australia depends on several factors, and some of those factors will be discussed in this blog post. iTrobes provides various types of ERP solutions in Australia, such as cloud-based ERP, Two-tier ERP, and mobile ERP systems.

The cost of ERP goes up proportionately upwards as the number of users increases. Since the ERP price is proportional to the number of users, large organizations with hundreds of users typically have more significant ERP costs than mid-level organizations. Gross estimates suggest that the total cost of installing and operationalizing ERP software in Australia is around $150,000 to $750,000.

ERP Software Price: The Budget Overheads

The ERP price in Australia can be subcategorized into the following subheads.

ERP Components Approx Charges
Cost Of Additional Servers$100-$200 per month (approx)
Cost Of Testing The Software15% of the entire ERP budget (approx)
Staff Training Charges$19-$199 (approx)
Data Conversion Charges$200,000 to $250,000 for TB data (approx)
Software Licensing Charges$1000 yearly (approx)

Cost Of Software Licensing

A typical software license agreement describes the parties entering a contract to use the software. The charge for the license depends on the type of device on which the software is to be installed and the number of users.

Moreover, additional factors like the warranties and the add-ons. The right to cope with or make tweaks to the basic code, etc., also affects the ERP software price. Also, the type of access granted, the number of times a code can be downloaded, and the maintenance fees, all contribute to the software licensing fee and, in turn, to the ERP price.

Rough estimates suggest that a mid-level organization’s one-year licensing cost is around $1000. The three-year cost for licensing is around $2640. So, if an organization aims for cost savings and has the available resources, it may go for a three-year plan, as it saves around 12% on costs.

Data Conversion Charges

The ERP system price will increase if data conversion charges are factored into the overall cost for ERP operationalization. For instance, if lots of data are to be transferred from one type of storage system to another, it is best to outsource the job.

Usually, the data transfer takes about eight to twelve months, depending on the data to be transferred. For an ERP system, the inventories, the data related to supplies, etc, are large data units that need to be transferred.

ERP cost in Australia

Cost Of Additional Servers And Hardware

The ERP system price also factors in the cost of additional server deployment. There are several reasons why an enterprise may benefit from the installation of extra servers. Multiple servers ensure the system is up and running even if one or two servers malfunction. So, the deployment of additional servers brings redundancy to the ERP system. Usually, an enterprise will have to shell out close to $200 for this purpose.

Likewise, an organization may need additional hardware to operationalize an ERP system. However, the amount one has to spend on deploying additional hardware will depend on factors like whether the old hardware is functional or needs a complete upgrade for the new ERP system. Thus, additional servers and hardware costs also contribute to the ERP price in Australia.

Testing The Code/ Software

ERP brings much-needed automation to an enterprise. However, since the software becomes solely responsible for the entire real-time management, testing its stability and usability is essential before implementing it. Now, software testing also contributes to the ERP system’s price.

Estimates suggest that the cost of testing comes to around 15 to 20% of the entire budget of the project. So, if the total ERP price in Australia is $150,000, then the cost of ERP system testing would be around $30000.

Training The Staff

If an enterprise in Australia is going for a new ERP system, then the staff must be well acquainted with the software. Hence, the staff, be it from the human resource department or the accounting department, must be trained to use the new software with ease. Usually, the training charges are based on the number of users trained and the hours for which they receive the training.

Also, additional expenses are added for each extra hour that an employee is trained to use the software. Also, the cost of software training depends on the cost of the product. Typically, companies charge $19 to $199 for training the corporate staff, which in turn contributes to the ERP price in Australia.

Post Installation Support And ERP Price In Australia

The ERP cost in Australia also depends on the post-installation consultancy required, and the more the frequency of consultation, the higher the charge. It is best to sign a deal with the company and arrange four to six consultations annually.

Make the Right ERP Investment for Your Business

ERP is a one-time cost for any enterprise, but it brings in much-needed automation, which lowers operational costs in the long term. The overall price depends on several factors: training required by the staff, the cost of services, and the licensing fees. However, overall, ERP is quite affordable and helps a business grow and prosper in a very short time. By carefully considering these factors and making a well-informed decision, you can ensure that your ERP investment will support your business’s growth, streamline operations, and enhance overall efficiency.