RSSSoftware and Services Spend by company size – Aberdeen
Aberdeen group recently published report titled Basic Cost Elements of the Total Cost of ERP Ownership, As a part of this report there was a chart highlighting the Software & Services spend by Size of company,
As the company grows, the number of users goes up, along with the total cost of software and services. Since volume discounts are standard fare in ERP pricing, one would expect the costs per user to go down as the number of users goes up.Also, as the number of users goes up, the expectation is that the total cost of software and service also rises, as was the case.However, while the software price per user did consistently go down with additional seats, not so with the total cost of software and services. While this was the case throughout the range of small to mid-size companies, enterprises over $1 billion in revenue actually paid more per user than those in the $500 million to $1 billion range. This can result from a combination of factors.First of all, implementations in these larger companies can be far more complex. Secondly, companies less than $1 billion in revenue will be more likely to have tighter purse strings and therefore more likely to attempt to implement by engaging fewer outside resources.
Source: 1
