Acumatica’s pricing model is a unique case in the ERP (enterprise resource planning) and accounting software market, where even most other native cloud solutions follow the same patterns as those of legacy and hybrid on-premise systems. Because of this, it can be hard to fully grasp the true difference in total cost of ownership (TCO) both upfront and over time for this application compared to virtually all of its competitors when they retain the same traditional way of charging clients per user seat fees. That is why SWK Technologies has put together this quick guide to help you better understand how an Acumatica Cloud ERP implementation is priced:
Key Components of Acumatica Pricing and TCO
Acumatica’s pricing* model includes several unique characteristics not commonly seen with other ERPs, from how usage is charged to how it is deployed. Here is a comprehensive breakdown of the key components:
Consumption-Based Pricing
The majority of enterprise-level financial and business management systems charge per user seat added to the organizational license. Acumatica Cloud ERP instead charges customers based on actual resource usage such as transaction volume, similar to how many other cloud-hosted services operate, tailoring the pricing structure around real-world consumption versus the number of user licenses added. This model ensures that the cost of ownership for your ERP is scalable to your needs as opposed to your headcount, letting you have as many users as you want access the system.
Deployment Options
There are several deployment options for Acumatica that grant you flexibility in where you want your software to live, and how you pay for it:
- Subscription Licenses
Typical of most cloud-hosted services, you are charged an annual subscription fee based on usage and overall consumption of IT resources, with a choice of deploying your ERP in a public or private cloud environment. These include:
- Public Cloud: The SaaS (Software as a Service) license hosts your application in a shared, multi-tenant server environment with AWS (Amazon Web Services). This is generally the cheapest license option for Acumatica Cloud ERP in terms of deployment costs.
- Private Cloud: As opposed to a public cloud environment, the Private Cloud Subscription (PCS) license describes a single-tenant environment that is hosted usually in a dedicated server. You have the option to host your software locally in your own hardware or contract a third-party cloud service provider (CSP) with their own datacenter (with all additional fees that may apply).
- Perpetual License
Perpetual maintenance charges are annual fees that are typical of legacy ERP pricing models; Acumatica allows you to choose this Private Cloud Perpetual (PCP) license option in lieu of a subscription. This also lets you choose to host your application in a hybrid cloud environment leveraging partial on-premise resources as well as with a third-party hosted one – the biggest difference is that you lose access to many of the publisher’s cloud-based services and upgrades may have to be handled manually.
Modules
Acumatica Cloud ERP features several different modules that provide various functionality focuses, from the core Financial Management app to more industry-specific ones like WMS (warehouse management system), Commerce Connectors for Shopify and Amazon, or BOM (Bill of Materials) and Routing. Many of these come bundled in particular Editions such as the Distribution Edition or Service Management Edition, or can be added to your suite setup at your discretion during implementation. Any module that is not inherently included with a given bundle may be liable for additional charges per each component added.
Implementation Costs
It is important to note that actual ERP implementation costs are essentially a separate charge from purchasing the core application, and include most of the services involved in installing and physically deploying it to every workstation at a high-level overview. This should always factor into your TCO for your software as whether you are working with a partner or in-house developers (or a combination thereof), there will always be additional expenses involved with configuring and fine-tuning your solution before it can be pushed live and be used. Not every deployment will be the same, and many consultants and resellers may present different pricing structures, so be sure to ask for a quote and include a detailed description of what you are looking for.
Add-Ons and Customizations
A vital but too often overlooked aspect of ERP implementation projects is the role of additional third-party software and customization. While powerful on their own, there are plenty of esoteric needs that financial and business management solutions are not going to be able to handle out-of-the-box, which requires additional configuration, custom coding and development, or integration with additional function-specific apps for areas such as shipping or sales tax automation. Acumatica has a wide range of partners that can provide either, but it is critical to understand what you need exactly first before engaging the right one.
*NOTE: Final costs for Acumatica Cloud ERP can vary significantly depending on what your final product and implementation project looks like. Be careful relying solely on what is posted on the web, as some sites list ranges from as low as $4000 to as high as $100,000 – in some cases these include charges that are not applicable (such as user licenses) and nearly all do not include additional fees such as for customization and development. Be sure to request a quote from a certified Acumatica partner and value-added reseller (VAR).
Benefits of Acumatica’s Pricing Model vs Legacy ERP Costs
The unique pricing model of Acumatica Cloud ERP introduces several benefits over the cost structures of legacy ERP, including:
Avoid Unpredictable Costs
Traditional license structures force you to pay for each user that may need to interact with the system, whether they are in there every day or just need to export a file every now and then. These costs will begin to mount as you need to add more users to ensure they can access the vital data stored there and perform their tasks directly. Acumatica’s price tiers are based solely on how much you expect to use your software for day-to-day activities, letting you budget accordingly, and in addition to the lower cost increase over time.
Prevent Data Security Gaps from Legacy Permissions
User-based plans have an often-overlooked potential to create gaps in cybersecurity, especially when accounts are shared to try to achieve a loophole around the pricing structure and limit budget spent on licenses. Practices like these can end up inadvertently broadening your attack surface as credential information is shared across any number of parties, many times outside of the oversight of your IT or network security teams. In addition to making it easier to having visibility into every user account, Acumatica Cloud ERP also allows your managers and other admins to apply strict permissions on what type of data is accessible to a given user type.
Simplified Pricing
Some legacy solutions hide functionality gaps behind a complex web of licenses that make it harder to have full control over what employees are able to do or access in the system. Acumatica is designed from the ground up with a user-centric mentality, and with every Edition you receive full access to all of the modules and features include in that suite. Only designated administrators such as It personnel or departmental managers are deciding who can or cannot interact with any specific data set.
Get a Quote for an Acumatica Implementation with SWK Technologies
The true TCO for Acumatica Cloud ERP can vary for every business and unique situation, so it is important to talk to a certified and experienced VAR to get a full understanding of what your investment – and ROI – will look like. As the 4-time Acumatica Partner of the Year, SWK Technologies will be able to show you intricately and explicitly what your implementation will involve, including for total costs.
Contact SWK here to get your quote for your Acumatica installation and see everything this modern cloud solution can do for your business.