Aberdeen ERP TCO Midsize_July 2007

This progression implies that as companies grow the

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Unformatted text preview: ompanies grow, the ERP solution becomes more comprehensive. Aberdeen observed a similar phenomenon occurring in the range of annual revenue of $250 million to $1 billion, within the range of 200 to 500 users. Table 2: Average Costs per User by Company Size Company Size Under $50 million $50 million to $100 million $100 million to $250 million $250 million to $500 million $500 million to $1 billion $1 billion to $5 billion Over $5 billion Average Number of Users Average # of ERP Modules Implemented Average Software $’s per User Average SW & Service $’s per User Average Total Costs per User 38 9.9 $6,680 $10,651 $13,854 92 11.1 $6,784 $11,973 $15,304 195 10.9 $6,933 $13,002 $18,157 344 10.8 $3,954 $6,518 $7,738 475 11.8 $3,556 $6,459 $8,712 2187 12.3 $2,616 $4,711 $6,025 3365 13.7 $799 $1,707 $2,068 Source: Aberdeen Group, July 2007 While the software price per user rose marginally as companies grew from $50 million to $250 million, the rise in the cost of services rose more steeply. This can result from a combination of factors. First, as implied b...
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This document was uploaded on 10/08/2013.

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