If you’ve heard it once, you’ve heard it a thousand times, “I can’t afford a new ERP” or “I can’t afford to change ERPs”! When you add the cost of purchasing a couple of servers, racks to house the servers, backup systems, firewall and security, and hiring expertise to manage the equipment to the cost of implementing a new ERP system, it can get really expensive really fast. It can almost seem overwhelming to a lot of small business owners. Yet, the cost to implement a new ERP doesn’t have to be that overwhelming if you take an Operating Expense (OPEX) approach instead of a Capital Expense (CAPEX) approach.
Many companies are now preferring to use the cloud instead of having to purchase and maintain a bunch of infrastructure and use OPEX spending versus CAPEX spending to avoid a large, all at once, cash outlay in favor of steady set monthly payments. Partners can now suggest a simple OPEX solution where the client can bundle the total cost of implementing a new ERP into a 3 year loan with a company like Dimension Funding. Mark Grimes at Dimensions says, “Monthly payments are easier for a company to absorb than a huge Capital expenditure and all we need to get a low interest loan approved is the name of the company, address and owners name.
Here’s an example of a typical on-premise 5 user Sage 100cloud ERP system using CAPEX.
Using this example, the client would need to come up with approximately $40,000 before the project even begins.
Here’s an example of the same 5 user Sage 100cloud ERP system using OPEX in the I-BN Cloud.
With a monthly OPEX option, the client’s monthly payments can be as little as $1,750. The client avoids a huge advanced payment and after the initial 3-year loan, the savings continue to accumulate with lower operating costs! The partner gets paid as they normally would for their time and work. It’s WIN-WIN for both the client and the Partner.
I-Business Network has been managing cloud infrastructure since 1999, long before the cloud was even called the cloud. We specialize in hosting Sage 100cloud, Sage 300cloud, Sage 500cloud, Sage CRM, Sage HRMS, Sage FAS and Sage BusinessWorks along with supporting applications and Office 365 for a true cloud experience. To get more information about hosting your business management software in the cloud, contact Bob Tobey at firstname.lastname@example.org or (678) 627-0646 x231.