CLOUD-BASED ERP/CRM SYSTEMS GENERALLY HAVE A LOWER TOTAL COST OF OWNERSHIP THAN ON-PREMISES SYSTEMS AS THEY DO NOT REQUIRE A LARGE INITIAL CAPITAL INVESTMENT. HOWEVER, IN SOME CIRCUMSTANCES, THE LIFETIME COST OF ON-PREMISES SOLUTIONS CAN BE LOWER, ESPECIALLY IF A SOLUTION IS USED FOR 10 YEARS OR MORE, AS ON-PREMISES SOLUTIONS DO NOT REQUIRE AN ONGOING SUBSCRIPTION. HOWEVER, IF WE ACCEPT THE “5 YEAR RULE”, MEANING THAT BUSINESS SOFTWARE IS GENERALLY REPLACED WITH A MORE UP TO DATE SOLUTION AFTER AROUND 5 YEARS, CLOUD-SYSTEMS ARE A MORE COST EFFECTIVE OPTION AS SOFTWARE AND SERVICES ARE UPGRADED CONTINUOUSLY WITH NO MORE MAJOR IMPLEMENTATIONS REQUIRED.
 
WE ALSO EMPHASISE THAT WHILE COST IS AN IMPORTANT CONSIDERATION, THE ABILITY OF THE SOLUTION TO HELP COMPANIES MEET THEIR BUSINESS OBJECTIVES SHOULD ALWAYS BE THE PRIMARY CONSIDERATION FOR ANY ERP/CRM SYSTEM PURCHASE.