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Web based ERP is the need of the hour for SMBs
When it comes to ERP most companies think they are costly solutions. And why not? Apart from the cost of the product, ERP implementation has various cost heads, most prominently, Hardware & Connectivity. Other cost heads like System Requirement Study & customization may or may not be applicable depending on the complexity of business. Training cost is inevitable and depends on how many users need to be trained. But out of these costs, major chunk goes to the hardware and connectivity cost. Let’s take a scenario; you are implementing ERP across 5 locations including HO, 1 branch office, 2 production units and a warehouse. Now, you need to purchase 5 servers for the above 5 locations. The server for HO has to be highly scalable and robust as it will be running the application and the database server. The application and the database server can be split in to 2 separate servers for better performance but may not be required in case of SMEs. So lets talk about 5 servers where the cost can be anywhere between 3 to 10 lacs depending on the brand and configuration. Add to it the cost of point to point lease line connectivity between the HO and other locations. Though the costs of lease lines have reduced over the years, but it still remains a major one time as well as recurring cost.
The above cost is inevitable in case you are opting for a traditional windows based ERP system. But if you opt for a web based ERP system, which is the trend now, you are on for a very robust, scalable and cost effective solution. Let’s see. In case of a web based ERP, you need only 1 server at the HO connected to an Internet Lease Line. Your application is now running on the world wide web. Other locations can now access the application with their secured username and password through any means of internet connectivity like broad band, ISDN or even dial-up. Look at the difference in costs now, 5 servers has reduced to 1 and 5 lease lines have reduced to one Internet Lease Line. HUGE SAVINGS. You can further cut on cost if you go for web hosting model where the application runs on a hosted server with the ISP and even your HO runs the application through broadband. In this case you need not invest in servers or connectivity at all. HUGE SAVINGS AGAIN. It goes without saying that any web based ERP will jell well with the traditional model also mentioned in the first paragraph. But when it comes to web based ERP, there are various deployment models available at your disposal where the Total Cost of Ownership (TCO) is reduced drastically and your Return on Investment (ROI) is increased tremendously. Web based ERP can also be easily integrated with e-commerce, customer & vendor portals or Enterprise portals, a big advantage. Web based ERP is the way to go.
The author is Amit Bansal, Client Technology Specialist at eDominer Systems, and can be reached at amit[at]edominer[dot]com
To access more information:
call +91-33-22866196 / 9830019363 or email info[at]edominer[dot]com
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