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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 Total Cost of Ownership
ERP on Premise - Bluechip 13,212,817.80
ERP on Premise - CodeAutomations 5,841,617.80
ERP on Cloud CodeAutomations 3,234,025.80

File attached in Apendix.

What are the advantage and disadvantage associated with each option
VINSUN is evaluating?
Advantages Disadvantage
Carries functions like fixed
asset management and
Bluechip fleet management not
Corporation's ERP needed by VINSUN
on premise Major ERP solution provider presently.
Versatile High on cost
Completely suited to company's needs
Customization available

ERP on premise Low on cost New in ERP
Not dependent on internet services. Only available on premise.

ERP on cloud Lowest on cost initially Start-up company
High on availability even from other Dependent on Internet
locations. services available
Data security risk as data
No investments required on servers and lies with the service
databases. provider.
Entire operational risk lies with the
service provider
Given your analysis, would it make sense for VINSUN to choose ERP on
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.

Attached is the calculation spreadsheet