http://navigateintosuccess.com/blog/2008-erp-report Ensuring Microsoft Dynamics NAV implementation success since 2003 Thu, 17 May 2012 21:05:45 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://navigateintosuccess.com/blog/2008-erp-report/comment-page-1#comment-1013 Vjekoslav Babic Tue, 10 Mar 2009 05:49:46 +0000 http://NavigateIntoSuccess.com/blog/2008-erp-report#comment-1013 JasonC: I can't argue with the customers who said what their actual figures are. I also can't argue with Panorama, who says that the cost include internal costs as well. From partner's perspective, the cost of project is usually expressed as license + services, which is not everything. Hardware can be expensive (I've seen Dynamics projects where hardware costs alone were above $1.5M) but partners rarely take these costs into account. Additionoally, internal costs can easily exceed the costs of license + services. If you take it as such, I have no problems believing that average Dynamics implementation is $2.6M. Plus, it's average, and it includes AX, SL, GP and NAV. I can't imagine SL project of that scale, I can hardly imagine GP on that scale, but I can imagine (and I've worked on more than a couple) NAV projects of that scale, and about AX, well--it can easily exceed that figure. Also, there are Dynamics partners who can't imagine selling a project of that scale, because they sell to small and lower mid-market where there are rarely more than 20-50 users involved. If you ask those partners who sell to enterprises, who can easily sell 500 to 1000 user projects, then price tags are significantly above those $2.6M average. That's the problem with the average. But again, it's provides a good picture and gives you feeling of what kind of scale of costs can you expect if you go with this or that solution. JasonC: I can’t argue with the customers who said what their actual figures are. I also can’t argue with Panorama, who says that the cost include internal costs as well. From partner’s perspective, the cost of project is usually expressed as license + services, which is not everything. Hardware can be expensive (I’ve seen Dynamics projects where hardware costs alone were above $1.5M) but partners rarely take these costs into account. Additionoally, internal costs can easily exceed the costs of license + services. If you take it as such, I have no problems believing that average Dynamics implementation is $2.6M. Plus, it’s average, and it includes AX, SL, GP and NAV. I can’t imagine SL project of that scale, I can hardly imagine GP on that scale, but I can imagine (and I’ve worked on more than a couple) NAV projects of that scale, and about AX, well–it can easily exceed that figure.
Also, there are Dynamics partners who can’t imagine selling a project of that scale, because they sell to small and lower mid-market where there are rarely more than 20-50 users involved. If you ask those partners who sell to enterprises, who can easily sell 500 to 1000 user projects, then price tags are significantly above those $2.6M average. That’s the problem with the average. But again, it’s provides a good picture and gives you feeling of what kind of scale of costs can you expect if you go with this or that solution.

]]> http://navigateintosuccess.com/blog/2008-erp-report/comment-page-1#comment-1012 JasonC Mon, 09 Mar 2009 19:54:49 +0000 http://NavigateIntoSuccess.com/blog/2008-erp-report#comment-1012 But here's the tough thing about the report, the actual dollar figures. If you are a Dynamics fan it's nice to point out that the cost of implementing Oracle appears to be about 5x that for Dynamics, and that SAP is 6.5x the cost of Dynamics. But that $2.6 million figure for a Dynamics implementation is a little hard to swallow. The author of the report tells me it includes all costs associated with the implementation, so internal costs as well as the license and consulting fees paid out. Even so, as I talk to Dynamics partners most cannot imagine why the number in the report is so high as their averages are all consistently, and considerably lower. But here’s the tough thing about the report, the actual dollar figures. If you are a Dynamics fan it’s nice to point out that the cost of implementing Oracle appears to be about 5x that for Dynamics, and that SAP is 6.5x the cost of Dynamics. But that $2.6 million figure for a Dynamics implementation is a little hard to swallow. The author of the report tells me it includes all costs associated with the implementation, so internal costs as well as the license and consulting fees paid out. Even so, as I talk to Dynamics partners most cannot imagine why the number in the report is so high as their averages are all consistently, and considerably lower.

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