ERP Cost of Ownership Criteria

Here we examine ERP cost of ownership criteria to evaluate your adoption options. When evaluating technology options for your business, Total Cost of Ownership (TCO) is an important measurement of value. Generally the potential user focuses most on the acquisition ERP cost which is the smallest part of the overall TCO. Actually the ERP cost of maintenance, upgrades, optimization, management, and training represent at least three times the cost of acquiring the technology when examined over the useful life of the technology.

It is therefore vital that the potential technology buyer should look beyond just the visible acquisition and implementation ERP costs but also to the associated ERP costs as to how much will the solution actually cost your business.

The evaluation criteria for TCO and the calculation should look something like this:

1. Cost per user per month
2. Consulting / Implementation costs
3. Training Costs
4. Ongoing User Support Costs
5. Upgrade Costs
6. Maintenance Costs
7. Extra Application Integration Costs (3rd Party)
8. Application Backup/Restoration/Recovery/Migration Costs
9. Cost of Adding New Functionality/ Modules or Customization
10. Cost of Adding New Users or reducing them in the Solution
11. Uptime Commitments and Cost of Business Downtime
12. Obsolescence cost of required hardware and infrastructure when the solution loses relevance
13. License fees
14. Functionality costs related to additional work required due to poor functionality
15. Set up and all related acquisition costs
16. Total financial obligation-tangible and intangible

Over a three-year period, the Total Cost of Ownership (TCO) for cloud computing solutions was generally seen to be less than half of that of legacy, on-premise systems with similar functionalities and benefits. Cloud solutions are installed, configured, and customized in a quarter of time taken by equivalent legacy on-premise solutions.

Businesses that consider and make the transition to cloud solutions report that they were able to redeploy their resources for more strategic purposes and more customer focused, revenue generation activities that positively impact profits. It helps free up key resources to accelerate your business growth and not just maintain it with real time & accurate data for better decisions across business functions.


We at Versa Cloud ERP have created a multi award winning, secure, comprehensive Cloud ERP solution that is e-commerce and mobility ready. The Versa Small Business Cloud ERP dba Versa system is accessible anytime, and on any smart mobile device. It provides support for e-Commerce and Multi-Channel Retail includes integration with 3rd party e-commerce platforms as well as POS systems.

In addition, the Versa Small Business Cloud ERP system includes the ability to remotely manage Master Data on multiple e-commerce and POS systems including product description, pricing, images, etc.

It is affordable and targeted towards SMB’s and is backed by a promise of dedicated support. It is being used by clients in diverse verticals and could help you redefine the way you operate and grow your business.

Our solution is designed for fast growing businesses, between $1-$50 M in annual revenue, looking to upgrade business management solutions like entry-level accounting products or mid-tier legacy on-premise ERP systems or even those looking at comprehensive and affordable ERP solutions.

Built from the ground up on the latest cloud and mobile technology, the Versa Cloud ERP system allows businesses to automate and optimize their operations across multiple companies, countries, and currencies with one integrated ERP system.

We will help you in a structured manner to migrate your data seamlessly from Epicor, Infor, QuickBooks, Microsoft Dynamics, MYOB, Sage, SAP Business One etc when you make the decision.

To know more, please visit or contact us directly.

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