Companies love the fact Sage offers choices and flexibility around Sage X3 deployment and licensing. As a result of this flexibility the overall cost of Sage X3 depends very much on the selected licensing model, product suite and deployment method.
Taking a quick step back first before exploring the costs of acquiring Sage X3, it is important to correctly understand it’s position. Sage X3 is priced and designed for small to mid-sized enterprises (SME’s). From a technical, functional and cost perspective Sage X3 sits above software packages designed for small to medium sized businesses (SMB’s). SMB’s typically consist of one main trading company and fewer than 25 system users. Sage X3 is designed and priced for SME’s who often consist of multiple companies in a group, and or with multiple offices (sites), warehouses and or production plants and often with offices and operations in multiple countries. The user count is typically greater than 25 users and may scale to thousands of users. Of course, there are exceptions to these generalisations but the more employees and system users and the greater the turnover of the group the more likely it is that an SMB positioned system will be unable to satisfy an enterprise’s or businesses’ sophisticated business processes.
Sage X3 Licences
Sage X3 licenses can be acquired as a one-off perpetual license purchase with annual vendor maintenance (The traditional licensing model) or as a subscription payable annually in advance. The cross over point where the cumulative subscription fee exceeds the one-off perpetual fee with an annual fee component is usually between 3-4 years. Given a company is likely to use Sage X3 for far longer than 3-4 years, a perpetual license acquisition can prove to be far more compelling than a subscription.
Separate to licensing, the Sage X3 system can be deployed under a public cloud or a partner cloud model or it can reside on a client’s server equipment. In the UK, Sage can also be supplied as a platform as a service (PaaS).
The Sage X3 core system is available in suites. There is a finance suite, a distribution suite, a manufacturing suite and a projects and jobs suite. There are a number of optional Sage components and independent software vendor products (ISV’s) that extend out the core system functionality to encompass more business processes on the Sage X3 platform. Software user licenses are concurrent and there are several license types that makes the product more affordable and flexible than ERP systems with named user licensing.
The other investment components to consider when choosing Sage X3 ERP software for your enterprise or business, components that apply to all ERP systems, are one off project services and post project support services. Sage X3 is highly configurable which means companies can obtain maximum value from Sage X3 through exact and comprehensive tailoring of the system to reflect users, groups of users and company-wide business processes, business rules, dashboards, workflows, alerts and approval processes that deliver maximum productivity and performance.
CitySoft offer a Fast Start project plan for companies aiming to grow into the SME space or smaller enterprises looking to get on to the Sage X3 platform as quickly and cost effectively as possible without limiting system expansion at a later date. Fast Start doesn’t suit everyone but for those where it does it has proven to be great value.
As a guide to an investment in one off project services to implement the various core Sage X3 suites enterprises should budget for around:
Finance $80,000 AUD Ex GST
Distribution $128,000 AUD Ex GST
Manufacturing $240,000 AUD Ex GST
Projects & Jobs $128,000 AUD Ex GST
Or economic fast start projects offer reduced project scope and fees for enterprises willing and able to adopt predefined system parameters and processes.
The nature and importance of ERP systems is that clients will require post project support services. The usual models exist across the key software vendors including annual fees, pay as you use and support costs rolled up into a software as a Service.
In summary, there are both CAPEX and OPEX models available with Sage X3 licensing and deployment. The required one-off project services for Sage X3, in comparison to other ERP systems designed for the SME market, compare favourably. The daily rates and days’ work effort across the vendors and business partners for the leading ERP applications all tend to fall within a similar investment band or range. The concurrent licensing of Sage X3 and the available user license types offer far greater value than named licenses and restrictive limited license types offered by other vendors.
Please contact CitySoft if you would like definitive pricing on some or all of the investment components and options concerning Sage X3 including licensing fees. Our highly skilled consultative sales people can tailor an investment package for you based on accurate licensing, cloud provisioning, if needed, one off project services and post go live support.