SAP Business One Price Estimation in the USA Explained
Does SAP Business One (SAP B1) need any introduction? Globally, many startups, small and mid-sized enterprises use this robust ERP solution for streamlining their processes. SAP SE, a German business solutions development company, offers on-premise and cloud versions of this integrated solution. In this post, we will discuss the SAP Business One price.
When it comes to estimating SAP Business One cost, we need to consider many factors including licensing options and add-ons or modules. These factors are based on your business requirements and medium to long-term goals. Read on to understand these factors and different pricing models and get useful tips for negotiating.
Let’s start with some interesting facts and stats related to SAP Business One.
Interesting Facts about SAP Business One Solution
• More than 48,000 companies (customers) run SAP B1 across the world
• SAP Business One has 500+ industry-specific integrations
• SAP Business One Consulting Partner market growth is estimated to rise at 6.1% CAGR from 2023 to 2029
• SAP has over half a billion end users across all its products
Here are some of the key factors influencing SAP Business One software pricing.
Factors Influencing SAP Business One Pricing
SAP Business One has flexible pricing models as per different licensing options. Here are these factors in detail.
Licensing options (user-based, professional, limited, etc.)
Licensing options are the most influential factors for SAP Business One price. This software offers two types of licenses primarily- Professional and Limited.
A professional or ‘full’ user license gives complete access to all the native features and necessary modules of SAP Business One. Perpetual software licenses and subscription models are available for obtaining a Professional license.
Limited licenses of SAP Business One offer partial access to a subset of SAP B1 functionality in three key areas- CRM (Customer Relationship Management), logistics, and financial management. The Limited User license is more cost-effective than the Professional license. Here also, a perpetual license and subscription models are available to get an SAP Business One Limited license.
Other types of licenses are SAP Business One Starter Package, mobile app license, and third-party integration license.
Deployment options (on-premise, cloud-based)
Traditionally, SAP Business One was designed for on-premise deployments. However, evolving technology has made it possible for this ERP solution to run on the cloud. You can take either option based on your business needs and future scope. For example, if you have a hybrid workplace it is better to opt for a cloud-based solution.
When it comes to cloud hosting, SAP Business One is available in two models- SAP B1 as SaaS and SAP B1 using Cloud as IaaS (Infrastructure as a Service).
In both on Cloud as IaaS and On-premise models, the customer has to pay license fees upfront, whereas, in the SaaS model, the customer can take a subscription every month.
Additional modules and functionalities
This is one of the most influential factors in determining SAP Business One cost. You can consult a reputed SAP Partner to build customized add-ons and integrate desired functionality in the SAP Business One software. The add-on developer can keep the development cost based on the complexity and other related factors.
Though SAP B1 is a comprehensive solution, you may need to consult an official SAP Partner for integrating some niche features as per your business requirements to get the optimum results. There, additional modules with desired functionality can work wonders.
Customization and integration requirements
SAP Business One has the necessary features or modules for all industry sectors. However, if you want to customize this solution, you can consult a reliable SAP Partner for addressing your business needs effectively with proper integration. However, these customization and integration factors can attract additional charges.
Maintenance and support costs
After integrating SAP B1 into your business system, it is always beneficial for your company to check the software regularly. Most SAP solution providers offer maintenance and support as additional (add-on) services. It is better to keep some amount aside as maintenance and support costs every year for making the most of SAP Business One software for your enterprise.
Out of these five factors, the licensing cost factor is highly variable because of different models and types of licenses. For example, SAP Business One Cloud cost is different than that for its on-premise version. Let’s segregate these types and models for estimating SAP Business One price.
How Much Does SAP Business One Cost?
(SAP Business One Pricing Models)
Here we dig deep into the pricing structures of subscription models and perpetual licensing along with implementation costs. We will also discuss the key advantages and major considerations of cloud deployment of SAP B1.
The SAP Business One Cloud costs under a subscription model are different. The model offers two options- monthly payment and annual payment. Here it is necessary to mention that these costs do not include training or implementation costs.
We can segregate the subscription-based SAP Business Cloud pricing into five categories-
1. Professional- It costs $132 per month per user
2. Limited- It costs $99 per month per user
3. Starter- It costs $110 per month per user
Apart from these categories, we have two more SAP Partner-hosted versions available.
4. Partner Hosted Professional- $188 per month per user
5. Partner Hosted Limited- $112 per month per user
Benefits of Subscription-based Pricing Models
As compared to the upfront amount with an additional 20% annual maintenance charge as CAPEX for one-time SAP Business One Cloud cost, its subscription model requires OPEX (Operating Expense). SMEs and even startups can keep their budget easily for day-to-day expenses. Also, the subscription-based model offers more flexibility than the one-time payment model.
An official SAP Partner can give you more information about these subscription-based pricing models and assist you to leverage the benefits of the most suitable model.
Perpetual licensing pricing
SAP Business One price for the perpetual software license is-
A one-time fee or an upfront cost for the software is $3213 per user. Also, you need to consider an annual maintenance fee of 20% to get version upgrades, support, and bug fixes.
If companies do not need full access, they can go for limited access through a Limited User license. It is more cost-effective than the Professional or ‘Full’ license but offers parietal access to three functional areas.
For limited access, you need to pay a one-time fee of $1,666 per user for a perpetual license and a yearly maintenance cost of 20% for receiving updates and support. Startups and small enterprises can also consider the Starter package with a one-time fee of $1357 per user. However, this package is limited to five users only.
If you opt for a subscription model, you can pay a monthly fee of $108 per user. The limited access subscription model has a monthly fee of $56 per user. There is no need to pay additional maintenance charges in this model.
Cloud deployment pricing
SAP Business One Cloud pricing depends on the subscription model you have selected. We have mentioned various subscription-based cloud hosting models above. Let’s go through some major advantages and considerations of deploying the SAP Business One Cloud in your organization.
Top Benefits and Considerations of Cloud Deployment
As a reliable and secure solution, SAP Business One Cloud remains highly cost-effective and efficient in improving business operations. Here are its top benefits for modern businesses.
• Reduced IT Expenses
It is because SAP Business One Cloud eliminates the requirement for on-premise hardware and software.
• Quicker Implementation
SAP Business One Cloud is easy-to-implement and therefore takes less time to implement.
• Flexible Options
This solution is available for deployment in three options- on-premises, in the cloud, and hybrid.
• Improved Uptime
With a highly secure data center, SAP Business One Cloud can ensure continuous availability of data.
Major Considerations for SAP Business One Cloud
You can consider the following aspects before choosing SAP Business One Cloud for your company.
• Data Security
SAP takes many security measures for safeguarding your data including encryption firewalls, and the like.
Though SAP Business One Cloud is scalable, it is better to consider the number of users and type of transactions.
The SAP Partner you want to choose should provide excellent technical assistance quickly and effectively.
You should ensure that SAP Business One Cloud is compatible with your industry-specific regulations.
SAP B1 implementation costs are calculated on a basis of per user. These costs include both setup and configuration expenses. However, the total cost can be varied because of various factors including data migration and training costs. We can get an estimate of implementation cost by considering the following example-
Suppose a hypothetical organization has 50 users for SAP Business One solution. With a moderate level of customization and standard data migration with ongoing support and maintenance, the total SAP Business One implementation cost might range from $50,000 to $100, 000.
However, it is better to talk to an official SAP Business One partner to meet the unique requirements of your business and get a more accurate estimate for implementation costs.
Tips for Budgeting and Negotiating SAP Business One Pricing
The SAP Business One price may seem high, especially for startups and SMEs. However, it is possible to make provisions in the budget and even negotiate pricing terms. Let’s go through some of the effective tips for SAP Business One cost budgeting and negotiation.
Understanding your business requirements and scaling needs
First things first. When you understand the requirements of your company from the perspective of ERP and business solutions, you can get the most suitable solution. Also, you should think of changing needs as your business grows.
Evaluating pricing proposals and comparing vendors
Some vendors may offer SAP Business One Cloud solutions at competitive rates. You can check the pricing proposals of different vendors and compare them. However, it is essential to check the client list, experience, and overall performance of the vendor before selecting one for SAP B1 implementation.
Negotiating pricing terms and contracts
Once you shortlist vendors, you can initiate negotiations in pricing terms and contracts with them. Here, you need to check and discuss the contract terms and other aspects also. You should focus on having the SAP Business One software with the desired features and functionality in line with your goals.
SAP Business One Cloud pricing completely justifies its features and benefits. You can opt for any subscription model that suits the most to your company and gain long-term value at a reasonable rate. These days, many SAP Partners offer an SAP Business One solution, and you can evaluate their pricing proposals and negotiate as per specific requirements with the chosen vendor.
Silver Touch Technologies is your trusted SAP Business One solution provider and add-on developer. We implement and maintain SAP Business One in your organization as an official SAP Partner. Do you want to get a free consultation on SAP Business One price or share your requirements? Simply drop us a line at firstname.lastname@example.org and one of our expert consultants will contact you soon.
SAP Business One Price: FAQs
The cost of SAP Business One varies based on licensing options, deployment choices (on-premise or cloud-based), additional modules, and customization requirements. Contact an official SAP Partner for accurate pricing.
SAP Business One (SAP B1) price depends on factors like licensing options, deployment (on-premise or cloud), modules, and customization. Consult an official SAP Partner for pricing details.
Implementation costs are determined based on the number of users, level of customization, data migration, and ongoing support. Generally, implementation costs can range from $50,000 to $100,000 for a hypothetical organization with 50 users.
Factors such as licensing options, deployment choices (on-premise or cloud-based), additional modules, and customization requirements affect the SAP Business One price.
SAP Business One offers two primary licensing options: Professional and Limited. The Professional license provides complete access to all features, while the Limited license offers partial access in specific areas like CRM, logistics, and finance.