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Transitioning Your ERP to the Cloud: A Look at Total Cost of Ownership

Are you considering transitioning your on-premise ERP solution to the cloud?

A big part of determining whether this transition is right for your company, is understanding the economic impacts of your current ERP solution and what your ERP might look like in the cloud.

In an on-premise environment, you will need a server, a rack, a climate-controlled server room, and an IT person, or team to maintain the servers.  There are also additional financial and time-related costs associated with buying the required licensing and maintaining the servers with the required service packs, and updates.

  • If you don’t have an off-site backup server, you’re exposed to downtime and/or data loss, either of which result increases your costs as your team is waiting for the servers to become operational.
  • If you have an off-site backup server, this results in additional hardware costs, as well as the expense associated with housing the backup server in a separate off-site location. 

Over time, these servers will become outdated and will need to be upgraded, which will require more server related expenditures.  With servers in place, you would require an IT person or team to maintain the server with the required licenses, service packs, etc. A good way to determine your economic value of investment against your total direct and indirect costs over your system lifecycle is through a Total Cost of Ownership (TCO) financial statement. Download this guide that will walk you through six cost areas to help you determine the right solution for your organization.

Once you’ve found that the cloud may be the way to go, consider taking a look at Microsoft Dynamics Business Central.

Migrating to a cloud-based environment like Dynamics 365 Business Central eliminates the risks your company is exposed to.  For a fixed monthly fee, Business Central:

  • Eliminates the costs associated with servers
  • Eliminating the concern of a system outage by providing you with data redundancy
  • Is automatically maintained and updated for you
  • Minimizes reliance on your I.T. team,

Author: Chris Flood | cflood@withum.com

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