Case: VINSUN Infrastructure Engineering - ERP on premise

or on cloud
Himanshu Shekhar (G15024)
Navneet Kumar Shukla (G15033)
Niladri Shekhar Dandapat (G15034)
Pallab Paul (G15036)
Umesh Chaudhury (G15057)

Evaluate the Total Cost of Ownership (TCO) for the

available options for a period of five year
IT Solutions
ERP on Premise - Bluechip
ERP on Premise - CodeAutomations
ERP on Cloud CodeAutomations

Total Cost of Ownership

13,212,817.80
5,841,617.80
3,234,025.80

File attached in Apendix.

What are the advantage and disadvantage associated

with each option VINSUN is evaluating?
Advantages
Bluechip
Corporation's
ERP on
premise

Codeautomati
on's ERP on
premise

Codeautomati
on's ERP on
cloud

Major ERP solution provider

Versatile
Completely suited to company's
needs
Customization available

Disadvantage
Carries functions like
fixed asset
management and
fleet management not
needed by VINSUN
presently.
High on cost

Low on cost
Not dependent on internet
services.

New in ERP
Only available on
premise.

Lowest on cost initially

High on availability even from
other locations.

Start-up company
Dependent on Internet
services available
Data security risk as
data lies with the
service provider.

No investments required on
servers and databases.
Entire operational risk lies with
the service provider

Given your analysis, would it make sense for VINSUN to

choose ERP on cloud?
If we consider the deployment cost only then definitely VISUN should choose
the ERP on cloud from CodeAutomation. Also in the short term the total cost
ownership for ERP on cloud is less. So it makes sense to choose ERP on
Cloud. But the yearly ongoing cost for cloud ERP is more than the ERP on
premise. In the long run the ERP on Cloud will turn out to be expensive.

APENDIX
Attached is the calculation spreadsheet

Vinsun.xlsx