The price tag on large ERP system purchases has become toodifficult for most customers to swallow in the current climate.
Not only are the up-front costs a barrier but the on-going requirementto keep the system updated is making some customers blanch at the costs.
According to findings from mid-market ERP player
Agresso itslarger rivals are finding things difficult with 52% of IT managers reportingthat cost is a serious barrier.
Added to cost issues there are worries about complexity andthe time it takes to make changes to take account of changing businesspractices.
It is costing mid-sized businesses on average £800,000 a year tomaintain and modify ERP software with larger companies spending threetimes as much.
Ton Dobbe,VP of product marketing at Agresso, said that flexibility had to be the keyplank of an ERP pitch.
“In timesof economic recession, flexibility to adjust to changing market circumstancesis more important then ever and can mean the difference between a company’ssuccess or failure,” he said.
Thefindings from Agresso back up anecdotal evidence that purchasing oninfrastructure projects is taking longer to get signed off and the pressure onresellers to prove a quick ROI has become paramount.