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Any examples of cloud ERP implementation cost/benefits analysis?

Any examples on a financial business case to help justify the transition of on-premise to cloud ERP platforms?


This question was asked by an attendee during the Proformative webinar “Best in Class Finance: How to Improve Controls, Achieve Compliance Efficiency and Streamline Reporting in the Cloud” which took place on March 26, 2013. Join the discussion and add your insights below.


Topic Expert
Donald Koscheka
Title: Principal
Company: Bluecloud Communications
(Principal, Bluecloud Communications) |

The business case for evaluating an on-premise vs. cloud ERP platform should take into account several factors:
(1) Acquisition costs - what are the costs associated with acquiring the hardware, software and services for each approach (obviously, acquisition costs will be higher for on-premise).
(2) Infrastructure costs - expenses associated with physical plant such as rent, utiliities, building security, building maintenance.
(3) Security controls - costs associated with implementing and managing security controls such as user access and permissions to physical systems. These costs are generally additive to building security (controlling access to the building vs. controlling access to the systems).
(4) Administration costs - costs associated with administering the solution - backups/restores, software updates, etc.
(5) Support costs - help desk, advanced trouble shooting
(6) Business Continuity costs - backup data center, data synchronization
(7) Integration costs - integrating ERP with operations systems (e.g. eCommerce, Inventory management, HR, etc.)
(8) Migration costs - if you're already on premise, what will it cost to move to the cloud and vice-verse.

If anyone is interested, I can put this in a spreadsheet on my blogsite and provide access to it.

Sarah Jackson
Title: Associate Editor
Company: Proformative
(Associate Editor, Proformative) |

Please take a look at Proformative's free white paper...

"ERP Selection & Implemenation Guide"

Best... Sarah

Joe Thielmann
Title: CFO
Company: Surge Innovations
(CFO, Surge Innovations) |

Hello Donald,
Thank you for the points you made. Did you ever put it in a spreadsheet? Also what is your blog site?
Thanks and Regards,
Joe Thielmann

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