ERP (Enterprise Resource Planning) is a central element of business digitalization aimed at performance gains. Deciding to install an ERP in your company is a genuine strategic choice, and it quickly raises the question of the budget to devote to it. Yet prices vary widely, and not always transparently. Here is a breakdown, with answers based on the Odoo application suite as integrated by Auguria.
Choosing between on-premise and SaaS
One of the first questions to settle is which operating mode you have in mind: using the software "on-premise", meaning you buy the licenses, or as SaaS, meaning you rent the licenses online. In the first case, you have dedicated IT hardware (server, backup system, security, etc.) and probably a structured IT department. You will need to plan for software installation time on the servers, hardware maintenance costs and updates. With SaaS, there is no hardware investment to plan for, and installation time is minimal: you simply log in to a URL. At Auguria, most of our customers have chosen SaaS because it brings flexibility and mobility, simplicity and security. It is also less expensive and free of surprises!
Which type of hosting?
With SaaS software, the question of hosting arises. Odoo offers two types of hosting (not counting on-premise): Odoo Online and Odoo.sh. The first is extremely simple and relevant for projects with a limited scope. Indeed, you can only host Odoo's standard applications (no custom developments, for example). Odoo.sh remains the most suitable hosting mode for our customers: just as simple and secure as the first, it offers broader benefits such as multiple environments, which let you run all your tests before going live, hosting of all certified and third-party Odoo applications, greater technical potential, a development environment, and more. Hosting prices are detailed on the Odoo website.
In your budget, distinguish recurring fees from integration fees
In an ERP project, there are two main budget lines: recurring fees and integration fees. Recurring fees are the budget you will need to allocate each year for user licenses, use of the chosen modules, hosting and finally software maintenance. Note that you must count both the publisher's maintenance and the integrator's. The pricing basis for the corrective maintenance provided by Auguria is calculated as a percentage of the overall service.
Integration fees, for their part, correspond to the implementation and deployment of the software in your company. They are calculated mainly on the basis of the project's functional scope, the complexity of the environment, the custom developments required and training time. Prices are set from a daily rate, established according to the experience level of the junior or senior consultant and the complexity of the service. You will find a very wide price range on the market, varying by a factor of three. Auguria is in line with the market average.
An ERP project is not trivial: make sure you have a good level of quality and security for your project, and do not fall for low-cost offers that will disappoint you in the long run!
License fees: Odoo's price transparency
Still rare enough on the ERP market to be worth highlighting, Odoo stands out for the transparency of its pricing grid, permanently available on its website. Odoo Enterprise pricing is based on attractive prices (arguably the cheapest ERP on the market) combined with very broad functional coverage. Prices are calculated according to the number of users (license cost) and the number of modules installed. The price of an Odoo Enterprise license is on average 18 euros per user per month. The Enterprise version includes version upgrades, the features of Odoo's Community version and additional features. Also note that the modular design of the software lets you buy modules as your needs grow. Consult your integrator to study the best implementation scenarios with them.
Continued in Part 2