Weighing up on-premise versus cloud ERP costs

New insights from Pat Garrehy of Rootstock Software point out the ROI considerations for both types of ERP deployment

ERP software providers often confuse potential customers with cost comparisons relating to software license, implementation, ongoing maintenance, future enhancements and customisations between Cloud and On Premise solutions, a new article points out.

In his new blog on ERP Cloud News, Rootstock Software founder, president and CEO, Pat Garrehy, points out cloud-based ERP solutions still have an ROI component. However, because the analysis and justification will no longer be a comparison of the total cost of ownership between Cloud and on-premise suites, the costs of software subscriptions will need to take into account comparisons against other operating expenses, such as hardware or infrastructure costs.

He also claims cloud versus on-premise ERP deployments can in fact have similar costs because of the way they’re implemented. Savings aren’t in fact about technology, but about usability.

Read the full article Cloud versus on-premise ERP: Which has the lower cost of ownership? here.

Follow CFO World Australia on Twitter: @CFOworld_AU, or take part in the CFO World conversation on LinkedIn: CFO World.