Enterprise Resource Planning (SAP)

 

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Find innovative ways to reach new customers, maximize efficiency, and drive profitable growth – with SAP Business One. This small business software can help you better manage every aspect of your company – from sales and customer relationships to financials and operations. Available on-premise, on-demand, and powered by our in-memory computing platform (SAP HANA) – the choice is yours.

  • • Capture all of your business information in a single, scalable system
  • • Automate and accelerate your end-to-end business processes
  • • Improve decision making and customer satisfaction with real-time insights
  • • Supercharge application performance and analytics with in-memory technology
  • • Give employees on-the-go access to SAP Business One with our mobile app
  • • Get up and running in just 2 to 8 weeks – and customize your solution with over 550 add-ons*

On Premise

 

5 Key Considerations When Comparing the TCO of On-Premise and SaaS Systems

At Software Advice, we help buyers research and compare enterprise software applications. As part of our work, we recently created a tool to help software buyers compare the total cost of ownership (TCO) of on premise and software-as-a-service (SaaS) solutions. In our tool (screenshot below), we model theannual and cumulative costs of each deployment model over a 10-year ownership period.

On Premise

The process of creating this tool was a great exercise in understanding what impacts the TCO of a software system. So we thought we’d share what we learned along the way. Here are the five key factors that stood out to us:

1. SaaS pricing must be normalized to create an apples-to-apples comparison.

One of the great value propositions of SaaS is that the up-front investment is lower than traditional on premise perpetual licensing, allowing the buyer to spread out costs over time.

However, buyers often forget to account for the net present value (NPV) of their subscription; that is, in today’s dollars, what will be the total cost of all future subscription payments. By overlooking NPV, buyers misunderstand the actual costs of their software investment.

Consider this hypothetical comparison: You could buy a $60,000 on premise license, with additional licensing costs of $6,000 per year. Or, you could purchase a SaaS subscription for $25,000 per year.

The SaaS licensing costs seem much cheaper – but while you may pay less on a yearly basis, these costs quickly add up. By year three, your annual SaaS subscription fees will already total $75,000. If you had an on-premise license, your costs would come to $78,000. As this example shows, forgetting to account for the NPV of your SaaS investment can give you the mistaken impression that your total license costs are significantly less than they would be with an on-premise system.

Of course, there are still good reasons – beyond licensing costs – to choose a SaaS system. For instance, the subscription pricing of SaaS system can reduce your financial risk, since sunk costs are relatively lower. And there are other costs savings from SaaS (discussed below), which might make it the most cost effective solution over time.

2. The cost savings of SaaS are real, but difficult to quantify.

To understand the true savings of SaaS, you have to look beyond the licensing and subscriptions. That’s because SaaS savings stem from not having to allocate as much of your resources to internal IT. With a SaaS system, the vendor takes on the heavy lifting of hosting and maintaining the software and ensuring data security – limiting your internal IT costs. It doesn’t eliminate them entirely, though. You will probably still have to manage system configuration and in-house testing, to make sure the application plays well in your IT environment.

On-premise software buyers, on the other hand, are responsible for maintaining the infrastructure (e.g., servers and databases) that powers the software, and for ensuring things like data security and uptime. If the system crashes due to hardware failure, that’s their responsibility, too. The unpredictable nature of IT issues makes it difficult to know exactly how much you will have to invest to keep your system running smoothly; managing your IT in-house can greatly increase your TCO.

3. You need to plan to buy new hardware and keep it running smoothly.

Hardware is another line item that buyers sometimes overlook. Many on-premise systems today have a web-based architecture. As a result, they demand less computing power on the desktop and you may not need to purchase new PCs for a new software system. However, you probably will need to buy new server hardware to properly power the application behind the scenes – and these costs can add up.

A $60,000 on-premise license could require a $25,000 hardware investment. And there are additional costs that arise from maintaining the hardware and keeping everything running smoothly each year. SaaS buyers will not have to plan for the same level of server hardware investment. However, some may want to purchase a backup server to back up company data from their provider. And they may also decide to purchase to hardware for users; for example, many companies are making large purchases of tablet devices as they roll out new SaaS systems.

4. Your customization needs greatly influence your TCO.

Many businesses customize their software to fit their unique business needs. Five years ago, there were relatively few options on the market allowing buyers to customize a SaaS system – so SaaS buyers typically spent less on customization. Today, more customization options exist and customers are engaging more consultants and system integrators to make these modifications. So while customization costs for a SaaS system are still not quite at on-premise levels they are likely to continue to increase as new options become available.

On-premise software is generally more customizable, because vendors have built more comprehensive software development kits (SDKs) for these systems. As a result, on-premise buyers often customize more – and spend more. Any time you customize your software, know that down the road, you may incur major system upgrade costs comparative to what you spent initially. It’s important to consider how you will maintain system customizations, and to what extent they will impact your TCO.

5. The upgrade cycle brings new, significant costs.

If you purchase an on-premise system, you will likely have to replace it in about five years. Your replacement cost will be similar to your original hardware investment, so make sure you plan for it.

On Premise

Source: Software Advice

Additionally, at year five, on-premise buyers will probably want to upgrade their software to the latest version. And the cost of a system upgrade can be reflected in all areas of your software purchase. For instance, if you’ve customized the system, you may need to ensure that your customizations remain intact. Sometimes, if you’ve added users to the system prior to upgrade, you may need to purchase additional licenses.

On the SaaS front, upgrades tend to be more iterative and are rolled out on a frequent basis – limiting upgrade expenses down the road. This is the major reason the TCO of SaaS and on-premise systems diverge around year five in our model.

Naturally, coming up with a refined TCO comparison will require you to do a little homework: For instance, you should model your expected costs in the event of organic or inorganic business growth. The choice between SaaS and on-premise is more difficult than simply looking at your options from a cost standpoint. But this should point you in the right direction, and help you understand some of the oft-overlooked factors that influence your TCO.

Cloud

 

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Take your small business to the next level – with affordable, cloud-based software

Get the business software you need, the way you need it, with SAP Business One Cloud. This affordable, solution can help integrate and streamline your key processes – including financial, sales, inventory, and more. And because the solution is hosted and maintained by experts in secure, world-class data centers, you can spend more time on innovation – and less on IT.

  • • Rely on the full, proven functionality of SAP Business One – in the cloud
  • • Start small with what you need now, and scale up as your business grows and needs change
  • • Rest easy knowing your data is physically and virtually protected 24/7
  • • Realize significantly lower TCO with subscription-based software-as-a-service (SaaS)

Mobility

 

Run your business any time, any place – with the SAP Business One mobile app for iOS and Android

Give your entire team the power to accomplish business tasks from their iOS or Android devices with mobile access to SAP Business One – software that enables small businesses to manage their key processes. Whether your company already uses SAP Business One or would like to learn more, you can try our free mobile app to enjoy on-the-go productivity today.

  • • Manage customer and partner contacts as well as scheduled sales activities
  • • Get alerts about deviations from approved prices and other significant events

KSE SAPAddons

 

Detailed Manufacturing
Payroll
Time Management
Reporting
Real Estate
Portal Solution
Weighbridge Integration
Foundry
Extrusion
Export Documentation
Gem & Jewellery
Designer Product
Plant Maintenance
Quality
Mobile App Development
Partner Addon

BI

 

Business Intelligence on Enterprise Reporting or BI on ER is a Concept unique to Kautilya. It is for the first time this concept has been innovated in any Business Intelligence and Enterprise Reporting product. BI on ER allows an End User to create a new report by merging multiple reports or even compare 2 or more versions of the same report. This amazing tool puts a lot of flexibility in the hands of users where a user can work magic with data without any need of going back to technical team.

Doing Business today is a very different proposition from what it used to be even a decade back. With the world progressing from Letters to Telex, Fax, emails, Instant Messengers and finally what’s App and other mobile chat tools have ensured that questions have to be answered immediately with none or little time to get back up data to take the instant decisions that have to be taken to stay ahead of the curve.

Kautilya is one such enabler. It gives instant answers to the most often asked questions to ensure that one is never lacking on information whether on the desktop or over the mobile. The best part is that even if some of the questions are not prebuilt, they can very easily be built to ensure that one is not left to take ill informed decisions.

  • ✔ It helps in answering some of the pertinent questions like:
  • ✔ What is my daily sales or sales at this particular point of time
  • ✔ Who are my top customers?
  • ✔ What are my main outstanding?
  • ✔ Who are my creditors?
  • ✔ How are my different market segments performing?
  • ✔ How does my current performance compare with past performance?
  • ✔ Which are my best performing lines?
  • ✔ Who are my top Sales professionals?
  • ✔ What are my iteration rates?
  • ✔ What is my customer satisfaction quotient compared to earlier years and many more?

SMS Tool

 

Excel plugin: Send SMS directly from Sheets, One more step reduced to send SMS. Directly send SMS from Google spreadsheet or Excel sheet!

CC 2 SMS: SMS is already integrated in every software, application; CRM and you can send it along with every mail.The perfect blend of convenience and utility.

Android App/iPhone App/Windows App: These are app through which you can send across bulk SMS and it’savailable on your phone network which is one of its kind cross platform communication tool which empowers communication to millions on the go.