You're negotiating ERP software licenses. How can you ensure scalability without breaking the bank?
To ensure your Enterprise Resource Planning (ERP) software scales effectively without breaking the bank, you need a smart approach to licensing. Focus on these key strategies:
What other strategies have worked for you in negotiating ERP licenses?
You're negotiating ERP software licenses. How can you ensure scalability without breaking the bank?
To ensure your Enterprise Resource Planning (ERP) software scales effectively without breaking the bank, you need a smart approach to licensing. Focus on these key strategies:
What other strategies have worked for you in negotiating ERP licenses?
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Most OEMS are happy to map your journey for you and assist you with the best solution to meet your requirements and also how and when to scale as your organization continues to grow, this process is typically free. It is also time to look at cloud as the easiest and cheaper option as most cloud ERP comes with built in functionality out of the box. This offers you as the customer quick time to value. Check with the OEM to see what rules they have about changing the software BoM to increase or decrease users during the course of the contract as this may differ Knowing the number of users that will touch the system is also important, while some modules such as HCM and payroll are priced on number of employees
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On-premise ERP annual licensing and cloud-based ERP monthly or other periodic subscription can ensure scalability without breaking the bank. They eliminate the high upfront investment of on-premise ERP perpetual licensing and spread the cash outlay over the ERP lifespan.
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It’s like buying a car you don’t need to pay for a sports car when a reliable sedan can get the job done. Start by understanding your current needs, but plan for growth. Choose a license that allows you to scale up without paying for extra features you won’t use yet. By negotiating flexible terms, you can add users and modules as your business grows - without paying upfront for features you'll only need in the future.
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Start by assessing current and future business needs, ensuring the license accommodates growth without overcommitting. Explore tiered or modular licensing options to scale as needed. Negotiate flexible terms, such as pay-as-you-go pricing or user-based models. Leverage competitive bids from vendors to secure better deals. Focus on essential features, avoiding unnecessary add-ons, and inquire about bundled services or discounts for long-term commitments. Regularly review agreements to optimize costs as your business evolves.
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