Among the widely used ERP (Enterprise Resource Planning) tools for SMEs in India, SAP Business One (or SAP B1) can effectively integrate business processes in any enterprise and automate manual tasks such as invoice processing and inventory management. SAP B1 can streamline various business functions related to sales and marketing, procurement, human resource management, and much more—all at an affordable price.
While more SMEs want to leverage the power of this ERP solution, they have little understanding of the SAP Business One price in India. Many enterprises believe that this price comprises the initial investment and nothing more. This is far from the ground reality.
This write-up gives a detailed breakdown of India’s SAP Business One price.
SAP Business One Price in India
The SAP Business One price in India is not restricted to the initial licensing cost (for the on-premises edition) or the subscription costs (for its cloud version). The SAP B1 price can increase due to a variety of additional reasons, such as:
- Data migration
- ERP consulting services
- Hardware expenses
- Customization
Factors Influencing SAP Business One Price in India
Here’s a look at the various factors that can impact the SAP Business One price in India:
1. Licensing or subscription costs
Enterprises can incur different costs based on their preferred pricing model and the number of users. With the licensing model, enterprises pay a one-time license price (along with around 20% annual maintenance charge). The subscription model requires companies to pay a monthly or quarterly fee (without any maintenance costs).
Typically, a one-time license cost is higher at around ₹1.36 lakhs per user, while the subscription cost is much lower at ₹7,500 per user per month.
2. Business size and number of users
The cost of SAP Business One also differs based on the size of the enterprise and the number of users. Here’s a detailed breakdown:
- In India, the SAP B1 cost for a small business (up to 5 users) can range between ₹8 and ₹12 lakhs.
- In India, the SAP B1 cost for a medium-sized business (5 to 50 users) can range between ₹14 and ₹75 lakhs.
- In India, the SAP B1 cost for a large enterprise (with over 50 users) can range between ₹25 lakhs and ₹1 crore.
Additionally, SAP Business One is available in multiple packs, such as:
- Basic pack – with basic ERP modules like finance and purchase – is ideal for first-time ERP users and costs up to ₹4,000 per user per month.
- A professional pack with the complete set of ERP modules costs anywhere between ₹3,600 per user per month and up to ₹120,000 annually.
- A limited user pack is designed for users in a particular business department (for example, CRM for sales representatives), and the costs vary depending on the business function.
3. Database
A secure database is necessary to store sensitive data for enterprises of all sizes. SAP Business One is supported on multiple databases, including SAP HANA and MS SQL. The price of SAP B1 also depends on the database system used by any enterprise.
While the SAP HANA database is more expensive, it offers a host of benefits, like optimum performance and reliability. Database costs in India can vary depending on the volume of data, ERP modules, and the number of ERP users.
4. Add-ons
Among its benefits, SAP Business One supports various add-ons, customized for every business or industry domain. With these add-ons, enterprises can improve their functionality and competitive advantage. That said, add-ons also increase the price of SAP B1 implementation.
SAP B1 add-on costs can differ based on various factors, including:
- The complexity of the customized add-on
- The level of add-on customization
- Industry domain
- Add-on development by a specific ERP vendor
The costs of SAP B1 add-ons are also driven by a host of vendor services, including:
- Development and annual maintenance costs
- Implementation services every month
- Cloud services, if required
5. Maintenance costs
In addition to the installation costs, SAP Business One’s maintenance costs in India can range between 15% and 22% of the licensing costs annually. Enterprises also have to bear the costs of developing new features in the ERP tool or installing the latest ERP version.
Besides software maintenance, enterprises also incur hardware costs for server maintenance and data storage. Optimum maintenance operations ensure consistent ERP performance and efficiency in the long run.
6. ERP consultancy
Most Indian companies fail to include ERP consultancy expenses in their overall ERP price. SAP B1 consultancy fees in India can be steep, depending on the consultant’s market reputation and offered services. Some ERP consultants may charge a one-time consultancy fee of around ₹1 lakh or a monthly fee starting from ₹12,500.
As a safe practice, check if your SAP B1 consultant charges more for on-site (than remote) consultation. Additionally, check for any hidden charges that could spiral your ERP expenses out of control.
How Praxis Infosolution Provides the Best SAP Business One Price in India
Through its long-standing partnership with SAP, Praxis Infosolutions provides a cost-effective SAP Business One price in India. Here’s how they have implemented a cost-efficient SAP B1 strategy for their Indian customers:
- A variety of SAP B1 packages that include an affordable pricing plan for SMEs.
- Wide industry experience in SAP B1 implementation, including manufacturing and healthcare.
- Efficient ERP project management thus reduces both project delays and costs.
- Customized ERP solutions that are aligned with organizational goals and needs.
In summary
As summarized in this article, the SAP Business One price in India is determined by multiple cost centres, including:
- Licensing or cloud subscription costs
- Number of ERP users and business size
- Customization and add-on development costs
- Consultancy fees
As an SAP B1 implementation partner, Praxis Infosolutions is committed to delivering the best ERP solution for your business needs at the lowest price.
Looking for a free cost estimate for implementing SAP B1? Contact us today.