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ERP TCO Total cost of ownership

ERP  TCO Total cost of ownership   ERP system cost should be viewed in the context of lifecycle cost or total cost of ownership (TCO). Consider the up-front cost for hardware, software and implementation plus operations, support and maintenance cost for a reasonable span of time like (at least 5 to 7 years). Most ERP system providers charge an annual maintenance fee in the range of 18-20% of the purchase price—and it is well worth the cost. A maintenance subscription will insure that you have continuous (phone and web-based) support, “bug-fix” services, as well as system updates and enhancements as the supplier continues to invest in the product and take advantage of new functions and technologies.