| | Traditional ERP environment | Possible hosted ERP environment |
|---|
| Time to implement | 3 - 6 months | 3 - 12 weeks (based on current client base) |
| Start-up costs | Purchase hardware and software for networking, storage, databases, operating systems, etc. | Utilize IBM systems |
| Project risk | Large capital and resource investments | Enterprise software available quickly |
| Adding users | Additional hardware/software may be required | IBM manages required hardware/software availability |
| Upgrades | UpgradesRequirements may include adding supporting software products and hardware | IBM manages all hardware and software requirements |
| Upgrade frequency | Larger overhead may result in less frequent releases | Experience with multiple clients may provide smaller, more frequent releases |
| Maintenance | In-house IT department manages support, reducing availability for strategic planning | IBM manages support and patch management |
| Problem resolution | Multiple vendors complicate problem solving | Single source vendor is sole point of contact |
| Cashflow | Large, one-time expense plus ongoing expenditures difficult to foresee | Set fee per user provides predictable costs |
