Tier 1 ERP vs. FreeBalance Total Cost of Ownership

How expensive is FreeBalance software? That’s a question we’ve answered many times in response to some remarkably expensive ERP implementations in county and city governments in the United States. It is remarkable, that with Total Cost of Ownership (TCO) in mind, most FreeBalance national-level customers pay less for similar functionality than many cities and counties in the United States.

Many observers want to know how much FreeBalance software costs. That’s a difficult answer because of the wide range of scope among implementations. The cost of enterprise software licenses or subscriptions can represent anything between 15% and 30% of the up-front cost. We use the benchmark comparison of ERP software.

FreeBalance Cost vs Tier 1 ERP Cost

Some governments publish prices quoted by vendors. This transparent procurement approach enables companies to become more price competitive. Most of these tenders are for the total cost over a 5 year period including implementation, training, maintenance, middleware and some hardware (typically servers). These are turnkey solutions that often include multiple providers.

The graph above clearly shows that the average TCO of ERP is 225% of the FreeBalance GRP total cost of ownership.

Why Does FreeBalance’s GRP Cost Less Than ERP?

There is significant evidence to show that costs for maintaining and supporting Tier 1 ERP systems are far more expensive than FreeBalance’s Government Resource Planning (GRPP) system – the FreeBalance Accountability Suite™. That’s because of the configuration approach used by FreeBalance that enables progressive activation. So, the 15 year TCO comparison is likely to show that Tier 1 ERP costs 3 to 10 times the cost of FreeBalance.

Configuration vs Customization


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