Everyone knows ERP systems are expensive, but where does the money actually go? Let’s break it down.

First, the software license. These aren’t your $20-a-month subscriptions. For a mid-sized company, licensing alone can cost hundreds of thousands per year.

Then there’s implementation. You’re not just installing a program—you’re mapping every process in the business, customizing features, migrating data, and testing endlessly. All of this needs consultants who charge top dollar by the hour.

Training is another hidden expense. Employees need to learn the system, which means hours in training sessions. During this time, they’re not doing their regular jobs, so the business also takes a hit in productivity.

And don’t forget hardware. If you don’t have the infrastructure, you’re buying servers or paying for cloud hosting, both of which add up fast.

Finally, there’s ongoing maintenance. ERPs aren’t “set it and forget it.” You’ll pay for updates, patches, and support long after the system goes live.

When you add it all together—licenses, consultants, training, hardware, and support—you can see how the costs quickly snowball into millions. It’s not just the software itself; it’s the massive effort to make it work for your business.