We regularly hear from companies that they have been using on-premise ERP for a long time and would like to switch to modern service and maintenance software in the cloud. Yet many organizations postpone the renewal for a few years because of, among other things, the high investment costs that they believe. Many people do not know that an outdated on-premise package often entails higher costs than they realize. We are happy to explain it to you.
IT costs of an on-premise package
Many people rightly think of the maintenance costs involved when talking about IT costs. An on-premise package is installed on your company’s server and is under your management. This requires time and knowledge from your own IT department. In addition, you often pay monthly fees for service and maintenance.
‘Hidden’ costs of outdated service and maintenance software
Many do not realize that an on-premise ERP package often entails other costs, especially if your current package is a bit older. For example, work processes have often become clumsy and inefficient. They have been crying out for improvement for a long time. How much time – and therefore costs – is lost in your company as a result? Although these costs are more difficult to define, they are present and tangible. Consider how much time is wasted on current work processes and how much time automating specific processes would save. Suppose you apply this time savings to the labor costs and other financial benefits of process improvement. In that case, you get a realistic insight into costs that you can save with new, modern service and maintenance software.
For example, our consultants regularly see at service and maintenance companies that they started installing and maintaining boilers earlier. Over the years, the heat pump has been added, but that requires a different approach to the work processes because it consists of several installations that have to be maintained. Outdated on-premise software is not set up for this and does not move with it so that employees work sub-optimally.
A modern ERP package in the cloud
One of the essential advantages of ERP software for installation companies in the cloud is that this software is flexible. The above situation that we just outlined is a thing of the past and will no longer occur in the future. If, for example, it turns out in one, five, or ten years that specific work processes are no longer efficient, or that they actually need change, or if new business activities arise, the software in the cloud can be easily adapted without having to purchase an entirely new software package. You can quickly scale functions up or down. Therefore, your investment for the implementation will not become unusable in some years.