Assume that SchmidtCo has decided to go for a new ERP system in 2021. Two vendors - Vendor A and vendor B have responded to the Request for Proposal (RFP) for ERP Implementation in Schmidtco. The cost analysis of various options are shown in Tabies 1-4. The network costs are shown in Table 5. (a) Which option would you recommend to SchmidtCo based on the Total Cost of Ownership (TCO) for the available options for a period of 5 years. Justify your answer. (b) Which option would you recommend to SchmidtCo based on the Total Cost of Ownership (TCO) for the available options for a period of 5 years and the dilemma faced by John in the case study. Justify your answer. (16 marks) (Instruction for answer the question: Students need to answer the question in the space provided and show the calculation in an excel file and upload the same) Table 1: COSTS FOR Vendor A (ERP ON PREMISE SOLUTION) cost component Cost (5) Hardware at user Premises 5,20,220 AMC for hardware ERP Software Annual Maintenance Charges AMC) of hardware con 40,000 Peruser license cost (Ten licenses required) ERP Customization, installation, and Training 2,50,000 AMC for Software 15% of initial licence cost Table 2: COSTS FOR Vendor B (ERP ON PREMISE SOLUTION) Cost Component Cost (5) Remarks Hardware at user Premises 5,50,000 AMC for hardware Annual Maintenance Charges: 10% of hardware cost ERP Software 35,000 Peruser license cost (Ten licenses required) ERP Customization, installation, and Training 3,00,000 AMC for Software 20% of initial licence cost cost component Cost (5) Remarks Hardware at user Premises 2,00,000 AMC for hardware Servicing fee Annual Maintenance Chargest of hardware cost 2200 Peruser per month (required for ten users) Data Storage Cost Annual cost (It is assumed that this cost w 70,000 Increase by 10% every year as the business will grow dynamically.) Table 4: COSTS FOR Vendor B (ERP ON CLOUD SOLUTION) Cost Component Cost (5) Remarks Hardware at user Premises 1,50,000 AMC for hardware Annual Maintenance Charges:10% of hardware cost 2500 Peruser per month (required for ten users) Servicing fee Data Storage Cost 50,000 Annual cost (It is assumed that this cost will increase by 12% every year as the business will grow dynamically.) w crowdynamically Table 5: NETWORK COSTS Cost Component Cost (5) Remarks Initial Network Cost 1,55,479 Total AMCfor Network Annual Maintenance Charges: 10% of network cost 50 Mbps Internet line 2000 Monthly cost of shared internet line. Uplo devi Assume that SchmidtCo has decided to go for a new ERP system in 2021. Two vendors - Vendor A and vendor B have responded to the Request for Proposal (RFP) for ERP Implementation in Schmidtco. The cost analysis of various options are shown in Tabies 1-4. The network costs are shown in Table 5. (a) Which option would you recommend to SchmidtCo based on the Total Cost of Ownership (TCO) for the available options for a period of 5 years. Justify your answer. (b) Which option would you recommend to SchmidtCo based on the Total Cost of Ownership (TCO) for the available options for a period of 5 years and the dilemma faced by John in the case study. Justify your answer. (16 marks) (Instruction for answer the question: Students need to answer the question in the space provided and show the calculation in an excel file and upload the same) Table 1: COSTS FOR Vendor A (ERP ON PREMISE SOLUTION) cost component Cost (5) Hardware at user Premises 5,20,220 AMC for hardware ERP Software Annual Maintenance Charges AMC) of hardware con 40,000 Peruser license cost (Ten licenses required) ERP Customization, installation, and Training 2,50,000 AMC for Software 15% of initial licence cost Table 2: COSTS FOR Vendor B (ERP ON PREMISE SOLUTION) Cost Component Cost (5) Remarks Hardware at user Premises 5,50,000 AMC for hardware Annual Maintenance Charges: 10% of hardware cost ERP Software 35,000 Peruser license cost (Ten licenses required) ERP Customization, installation, and Training 3,00,000 AMC for Software 20% of initial licence cost cost component Cost (5) Remarks Hardware at user Premises 2,00,000 AMC for hardware Servicing fee Annual Maintenance Chargest of hardware cost 2200 Peruser per month (required for ten users) Data Storage Cost Annual cost (It is assumed that this cost w 70,000 Increase by 10% every year as the business will grow dynamically.) Table 4: COSTS FOR Vendor B (ERP ON CLOUD SOLUTION) Cost Component Cost (5) Remarks Hardware at user Premises 1,50,000 AMC for hardware Annual Maintenance Charges:10% of hardware cost 2500 Peruser per month (required for ten users) Servicing fee Data Storage Cost 50,000 Annual cost (It is assumed that this cost will increase by 12% every year as the business will grow dynamically.) w crowdynamically Table 5: NETWORK COSTS Cost Component Cost (5) Remarks Initial Network Cost 1,55,479 Total AMCfor Network Annual Maintenance Charges: 10% of network cost 50 Mbps Internet line 2000 Monthly cost of shared internet line. Uplo devi
