Understanding the Cost of your Microsoft ERP System
A question we hear frequently is, "How much does it cost to implement and maintain a Microsoft ERP solution?" Whether you are looking to support your Microsoft Dynamics NAV system or are considering making the switch to Microsoft Dynamics 365 Business Central, we've got your answer. Investing in an ERP system is a huge decision for your business to make. It can be time-consuming and expensive if not done correctly. However, if it is implemented properly, you will not only experience greater productivity but, more than likely, save money at every level of your organization.
At Innovia, we strive to be a partner you can trust for all of your Microsoft solution needs. One way we build trust is through transparency in pricing. This page offers a quick overview of pricing structures from both Innovia and Microsoft. You may either scroll through the complete listing or click the links below to jump to the section that interests you:
What Are Innovia's Rates?
Our rates are divided into three main categories. The first is our standard hourly rate, the second is our reduced rates offered when buying bulk hours, and the third category is a list of hourly rates for work done outside of standard business hours.
Innovia’s standard rate is $275/hour and is incurred for any work completed during our standard business hours. These hours are Monday - Friday from 7 am - 6 pm CST. Please reference our “How We Do Business at Innovia” document for more detailed information on Innovia Consulting rates and billing policies.
Prepaid Service Hours
To get the most bang for your buck, we recommend purchasing a block of hours. The cost per hour is significantly lower than our standard rates, and your hours never expire. Please reach out to your Customer Engagement Specialist to order prepaid service hours. Don't have an Innovia rep? Please contact us by phone at 800.834.7700 or by email at firstname.lastname@example.org. We would be happy to provide information about our rates.
After Hours Rates
For work planned outside of standard business hours, you will incur the following after hour rates.
How Much Does Business Central Cost?
Microsoft Dynamics 365 Business Central takes advantage of the latest in Microsoft innovation and is designed with you, the end user, in mind. Microsoft has made the cost of its system affordable to businesses of any size. Below is a breakdown of the main cost considerations when investing in either a new system or an upgrade.
Business Central (BC) is billed as a monthly subscription. There are three different types of users for BC. The first two are called Essentials and Premium users. These users have full access to most functions of your system, with Premium users having additional access to functionality like manufacturing and service management. The third type of user is called a Team Member and has limited access to the Business Central system. The pricing for each type of user is as follows:
See what features are available for Essential and Premium Users by following the link below.
An important step in our process is what we call a planning engagement. The planning engagement is a thorough assessment of your current setup where we evaluate how it was constructed, how efficiently it works, and what areas could be changed. Our goal is to help you identify areas where you can find a more affordable option to meet your needs (in most cases via an ISV partner) and see if there is any functionality that you simply do not need.
A planning engagement is needed if you are upgrading from NAV, switching partners, or both. For Business Central there are two different options for your Planning Engagement:
- For our simple planning engagement, we charge $10,000. This option includes a limited write up.
- For a more in-depth on-site planning engagement, we charge $39,995. This option includes a Fit Gap Analysis and Functional Requirements Document. Take a look at the examples below to give you an idea of what you will receive with an on-site planning engagement.
After your Planning Engagement is completed, you move into the implementation phase. For most companies, we can provide a fixed fee engagement. Based on your requirements, we typically offer three different implementation packages:
- The base package with standard functionality and financials costs $60,000.
- The extended package features additional functionality that is useful for manufacturing, jobs, and service management. It runs for $90,000.
- Custom projects are priced on an individual basis. While impossible to estimate, the results of your planning engagement will help us determine the cost. This option is often right for organizations that:
- Need many ISV add-on solutions or integrations.
- Require significant customization of the system.
- Have a complex or very large organizational structure, such as an international corporation.
The results of your planning engagement will give us the data we need to offer the right package for your business needs.
Upgrading to Business Central from NAV
If you are looking to make the switch from NAV to Business Central, then you will either do an upgrade or a re-implementation. The cost of upgrading to BC (as with any NAV upgrade) depends primarily on two key factors:
- What version you are coming from
- How much your existing system has been customized
A Planning Engagement will help us give you a more precise quote, but to get a general idea of pricing please see our help article on the cost of NAV Upgrades.
How Much Does Microsoft Dynamics NAV Cost?
Before we started calling it Business Central, Microsoft called this software NAV. Many of our clients still use NAV, and we are more than happy to help you with all of your Microsoft Dynamics NAV needs. The pricing structure of NAV is a little different than BC.
The price per named user for Microsoft Dynamics NAV is $2800.
Each year you are required to pay an annual maintenance (aka Annual Enhancement) fee for the continued use of your NAV system. Microsoft calculates this number based on 16% of the software value held by any particular company. This is the total amount of Users, Tables, etc. that any company holds up until that point and is reflected in a company’s Protected List Price (or PLP). The NAV Administrator for your company can log in to PartnerSource at any time and look at a quote for your Annual Maintenance Renewal. This provides a breakdown of what your annual maintenance will cost.
Would you like to increase your cash flow? Follow the link below to learn how to turn your Annual Maintenance into a monthly payment.
Upgrading to a Newer Version
The cost of upgrading your Microsoft Dynamics NAV system depends on two key factors:
- The age of your current system
- The amount of customization on your current system
Please see our NAV Upgrade Cost help article to get more specific information on the cost of a NAV upgrade.
If you are new to Innovia, we recommend scheduling a planning engagement. This engagement helps our team understand your business and your system. Our experienced team will audit your current setup to learn everything we need to know about your business to get your system where it should be.
Our goal is to help you identify areas where you could find a more affordable option to meet your needs (in most cases via an ISV partner) and to see if there is any functionality that you simply do not need. Once we understand your system and your business, you will find that we will be able to offer insights tailored to your specific needs.
This engagement costs $39,995.
If your system is beyond repair, we will recommend a re-implementation. Simply put, we reinstall your system from scratch. As part of this engagement, we take a closer look at your existing system to identify ways where we can help you save money and improve efficiency. Learn more about our re-implementations here:
Microsoft Cloud Solutions
One of the best ways to truly gain an edge with your ERP system is to connect it with more of the software you use across your business. As one of the largest software companies in the world, Microsoft has a whole suite of options to help you solve any business problem you can imagine. Best of all, Innovia can help you get started and provide support for these cloud solutions.
Microsoft 365 Pricing
To take the most advantage out of the fact that your ERP system is owned by Microsoft, you want to connect it with your Microsoft 365 subscription. Don’t have one? We can offer you a subscription backed by both Microsoft and the support team at Innovia.
Microsoft 365 is available in several packages with different prices and options for apps and services. The most popular of these options is Microsoft 365 Business Standard. This package costs $12.50 / User/ Month and comes with all of your favorite Microsoft apps and cloud services such as Sharepoint, Microsoft Teams, and OneDrive. This package was previously known as Office 365 Business Standard.
If you need more security for your business, then we strongly recommend Microsoft 365 Business Premium. This package combines the power of Microsoft 365 applications with top-notch security from the largest software company in the world.
Microsoft 365 Business Premium is $20 / User/ Month. Our team has licensing experts who can frequently find you special deals to get more out of your Microsoft 365 subscription. Contact us anytime to learn how to qualify for these special offers.
Microsoft Azure is your go-to source for all your cloud infrastructure needs. It's secure, reliable, and fast!
Our team is happy to help you get an estimate of the cost based on your specific use case. You can also use the price calculator on Microsoft's website.
We are also proud to announce that Innovia is certified for the Azure Government Cloud. Find out if you qualify today!
Have Other Pricing Questions?
We would love to help!
Please contact your account manager today to get your specific pricing questions answered. Don't have an Innovia rep, you can call us at 800-834-7700 or email us at email@example.com. We look forward to hearing from you.