Cost of Ownership

Typical cost structure for SAP CRM:

License/Subscription Cost

- On-Premise:

  • Licensing-based model, required to pay upfront fee to own the software plus IP for a fixed term, along with installation, customization and integration costs
  • Price is dependent on the size of the business, functionality requirements and number of users

- Cloud-based/SaaS:

  • Recurring subscription based model - depends on the number of users
Maintenance Cost
  • On-Premise: Support licenses are charged over and above the license cost
  • Cloud-based/SaaS: Included in the subscription cost
Installation/Implementation Cost
  • On-Premise: Included in the license cost
  • Cloud-based/SaaS: Nil
  • Customization Cost Will vary depending on the functional requirements such as configurable dashboards, type of data elements required for tracking, complexity of workflows, etc.
    Data Migration Cost/Change Management/Upfront Switching Cost Dependent on the current software, amount of data to be migrated, availability of migration tools, complexity of data and gaps between the existing system and the new system
    Training Cost
    • On-premise: Dependent on the type of training opted by an Organization, whether it is end-user training or group/department training or video/self-training or train the trainer
    • Cloud-based/SaaS: Included in the subscription cost
    Recurring/Renewal Costs
    • On-Premise: Will depend on the type of license purchased – named user or concurrent user licenses
    • Cloud-based/SaaS: Renewal cost is equivalent to the fees paid monthly or annually, based on the number of users
    Pricing Details
    Product Name Description Price/Details
    SAP CRM Subscription Cost What is the cost of the software?
    • SAP CRM ON-Demand: $75/user/month for sales force automation, marketing or service module
    • $125/user/month for all 3 modules bundled together
    • Minimum 100 users
    • User can purchase additional disk storage capacity from IBM hosting services in 25 GB increments
    Deployment Options What options are available for product deployment?
    • Cloud-based/SaaS
    • On-Premise
    Pricing Model What is the pricing model?
    • Licensing model
    • Subscription-based
    Minimum Commitment Minimum commitment of 1 year is required
    Custom Quote Can you get a custom quote? Yes
    Free Trial Does the vendor provide a free trial option? Yes
    Product Limitations

    Some of the product limitations include:

    • UI of SAP CRM module is not very intuitive
    • Does not integrate with other SAP products such as SAP ERP, BI/BW, PI/XI
    • Backend configurations in SAP CRM are complex and require highly skilled and experienced professionals
    • Queue Management in SAP CRM is not automated and has to be done manually
    • Requires extensive training support to run the system

    NetSuite CRM+: Starting at $129/user/month

    Salesforce CRM: Starting at $25/user/month

    Sugar CRM: Starting at $40/user/month

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