Total cost of SAP implementation

[Former Member]

Dear All,

Can anybody tell me the total cost of SAP implemention:

1. SAP software:(SD, MM, PP, FICO)

2. Hardware

3. Others

Waiting from your kind advice.

Thanks with B/R

Pratap

[former_member421159]

Hello Pratap,

Choosing SAP is easy as a product but challenges in implementation. specially in change management and migration from legacy system and make the users comfortable with the new integrated SAP system. any SAP implementation should have the focus on the TCO and the shorter ROI. Keeping focus on that i would recomand that please take SAP licenses gradually like if your organization is having 500 officer level employees and as you mentioned 4 module you want to include so first consider the min users in those 4 modules. suppose you have 200 user in those modules so you can start with 1/4 that is 50 user license moreover SAP is having different levels of user licenses based on use level and price.  like (price higher to lower):Developer,  Professional, Limited-Professional, Non professional, Shop-floor, Workshop, Employees. so you can divide those 50 license according to your need this will reduce you cost also.

01. AS Nitin mentioned you can calculate the SAP license cost.

02. For hardware cost you can have details idea in http://bgrajib.blogspot.com/2013/04/sap-hardware-sizing-and-cost-saving.html

03. For consultancy you can make your preparation by involving local SAP experienced user, so they can prepare the legacy system for SAP than involve the SAP partner with 3000000 INR.

Hope this will give you proper planing idea.

Thanks

RAIM

[Former Member]

Hi Pratap

[1] the SAP s/w is based on license each license cost Rs. 50,000-75,000 [ this amount is based on number of license you buy, more license less  cost. take example that you need 100 license.  50000x100]

[2] SAP s/w need implementation [ configuration as per your requirmetns ] the cost involved man days of consultatnt, consider Rs. 5000000

[3] H/W, servers,backup,switches and OS s/w  consider Rs.1000000

[4] Other exp; Infra for implementation and poset SAP you need many system, consider Rs 1000000

[5] contigency exp . %

Hope some idea u got from

[former_member205178]

Hi Pratap,

As Jan has indicated it is too broad a question. I can just give you some pointers on the way the costs may be arrived at:

Remember, I am just a regular consultant working in the field of SAP[fairly long though] who does independent consulting. You dont have to take my word for it.

SOFTWARE:

Usually it is based on the number of user licences and each module could have any number of users based on the customer. I am pretty sure there are other models now;

HARDWARE:

Dont have much inputs on this.

OTHERS:

Deployment / Implementation of the software to suit the customer's requirements would be the major part of others to big with. This would entail engaging an Implementation partner. This could also be a substantial amount.

The Implementation Partner services would be either on a fixed bid or T & M basis.

Depending upon the number of resources and hours they work for the duration of the project the amount would be spent.  

In a fixed bid, as the word says, the implementation partner would quote a fixed amount for deploying the SAP Solution for the customer, irrespective of the number of resources and time the project takes. This is a kind of risky proposition if the complexity of the project are not known upfront.

There are other models now a days like Rapid Deployment[based on the size of the company and how much project scope the company wants to have] which deals with shorter cycle of implementation and hence lesser dollars spent with standard or close to standard SAP Process mapping. These are I believe fixed bid assignments. I do not have the current understanding on this as it has been a while since I worked in one of them.

I am pretty sure there are other methods too, but I am limited to my knowledge above. Hope this makes it a little easier in terms of general introduction to this complex process.

Thanks.  

[janmusil]

Pratap,

this is very broad question and I doubt you will receive a clear answer. I would suggest you to work with SAP sales representative or SAP partner in your country to get the answer. They will need to look into the scope of the solution you are looking to deploy as the basis for estimation of the implementation cost and license cost.

Best Regards, Jan