Acumatica Pricing: How much does Acumatica Cost?
Price is one of the main elements businesses consider when looking for a new Enterprise Resource Planning (ERP) solution but as you’ve probably discovered, no matter how much of a research wizard you are, finding accurate pricing online is nearly impossible. The reality is that you won’t be able to access accurate pricing until you have conducted a discovery of your business, typically done with the help of a solutions provider who will create a customized quote based on your unique business needs. What you can gain insight into through your research though, is the structure of pricing for the ERP solutions you’re considering. The structure of ERP pricing can differ depending on the solution you choose and Acumatica stands out for its unique approach: you only pay for what you use.
Acumatica Pricing Structure
There are three main factors that determine the price of Acumatica: applications integrated, type of licensing and usage. The first two factors are common among all ERP solutions, but what sets Acumatica apart is usage. Unlike other ERP solutions Acumatica allows you to have an unlimited number of users, and instead of charging businesses for individual licenses for each user (which we all know can add up quickly) Acumatica charges businesses based on their transaction volume and data storage.
1. Applications Integrated
When it comes to ERP, small to medium sized businesses often make one of two mistakes: they wait too long to invest in an ERP (which can inhibit their growth) or they invest in a solution that is far to advanced and expensive too early (which can use up essential resources that could/should be used more effectively in other areas ).
Acumatica is built on the foundation of only paying for what you use, which involves implementing the core Acumatica solution and applications you need first, and then adding additional applications to expand specialized functionality as you need it down the line. For example, you may start by only adding CRM and Financial Management, but as your needs grow you can opt to include the Reporting, Dashboards and Data Analysis Toolkit, the Manufacturing Management or Commerce Edition (to name a few).
2. Type of Licensing
Acumatica is unique because on one hand it’s a true cloud product (meaning that it was built to be used online rather than built for on-premise use and then moved to the internet to keep up with tech changes) and users can access their solution from any web browser with access to the internet, without additional software licensing or client apps.
On the other hand, it still offers different options for deployment so businesses can benefit from full cloud capabilities and have more options for how and where you want your data stored.
SaaS Subscription is by far the most popular option for Acumatica. Businesses pay an annual subscription fee, and maintenance responsibilities (such as updates) are managed for the business by an IT organization or business partner (like us, for example).
Private Cloud Subscription
Private Cloud Subscription also involves an annual subscription fee, but it enables businesses to deploy the solution on premise or with a preferred hosting provider. This option is a favorite among many Canadian businesses as it gives you control over where your data is stored, enabling you to store it within Canada to comply with certain industry regulations for data management, while having full online & mobile access.
Private Perpetual License.
On the other hand, if you don’t want to pay annual subscription costs for the software you can opt to purchase the Private Perpetual License (a one-time cost) to outright own the software. This requires higher upfront costs, but will lower annual costs since you’ll only have to pay for the annual maintenance. With this option businesses can deploy the software on-premise or with your hosting providers of choice.
3. Usage instead of User Licenses
As mentioned earlier, with most ERP solutions the cost is dependent on how many users you have. Each user requires the purchase of an individual user license, so the more users you have, the more expensive your solution gets. While this isn’t necessarily a bad thing, it doesn’t take into consideration the degree to which users are engaging with your ERP solution. You could have 5 users that use your business management system a total of 200 hours a week, versus 10 users who use it a total of 40 hours a week, but you would still pay more to have 10 users with access to the solution.
With Acumatica’s approach to pricing your cost is directly associated with your usage and not the amount of users. Acumatica looks at the number of monthly transactions to provide an effective measurement of the volume of business you do, along with the amount of storage (for ERP and media data) that you require. The transactions taken into consideration include commercial (Sales Orders, Shipments, AR Invoices, Customer Payments, Purchase Orders, Purchase Receipts, AP Bills, and Vendor Payments) and ERP transactions (each time the save button is pushed). This is referred to as the License Tier (as seen in the table below), and it allows you to upgrade your solution gradually to match your growth and needs. So if we consider the example of 5 versus 10 users provided above, with Acumatica it would be cheaper with 10 users because they are using the solution less.
We know, you read an entire blog about Acumatica pricing and we still haven’t given you a price… not even a ballpark. For that we’re sorry! We understand your frustration but trust us when we say any ballpark figure you can find on the internet isn’t worth diddly squat until someone has actually sat down with you to dive into your business, your processes, your wants and your needs. Gaining insight into the structure of pricing will give you an indication of where you will likely incur more costs, and in most cases Acumatica’s option for unlimited users and licensing tier based on usage give businesses the flexibility they need to drive growth and success.