Essay About Additional Cost And Dire Need

Vinsun Analysis
VINSUN Infra EngineeringVINSUN Infra is a fast growing company in providing electrical and civil services for a decade. The company is currently using Microsoft (MS) Excel to process the information for its day-to-day activities. The company is facing challenges in terms of information overload, lack of data integrity, redundancy and incompleteness. There is a dire need to invest in upcoming technologies to tackle the current problems faced by the organization. VINSUN received proposal from two companies:- Bluechip Corporation, which is an established firm and will provide ERP on premise with option for customization at additional cost and Codeautomation(CA) , which is a startup in this field and will provide ERP either on Cloud and premise depending on the requirements of the company. The pro and cons of the options are listed below:-ERP on Cloud : ProsConsReduced CostData Back-upsInitial investment lowAccessibilityLow business disruptionFlexibility to add/remove users as needed (only pay for what you want/need)Data Security And Privacy Internet Required- Speed and Connectivity High Recurring Cost ERP on Premise : ProsConsLower long term costData SecurityCustomizationNo Need For Internet Connection-Control and flexibility  Higher upfront costHigh Maintenance CostBusiness DisruptionUp gradation/Training of employeesCustomized software without ERP : ProsConsData is complete and real-time.Fast and accurate.Lower cost Lower set-up time.Low business disruptionInferior TechnologyTime consuming in comparison to ERP.No long-run benefit Lack of inter-connectivity among different functions.Difficult to co-ordinate and manage.ERP Application  BluechipCA (Premise)CA (Cloud) Component   Hardware Cost    Workstations209700209700209700 Workstation UPS222902229022290 Laptops132488132488132488 Server100000700000 Back-up Servers100000700000 Server UPS systems775077500 Maintenance (10%)286114256114182239  858342768342546717Software Cost    ERP Application Software9600002400000 Consulting8000000 Deployment52000000 Training18000000 Installation02000000 Maintenance (18%)8640001800000 Servicing  960000  2604000620000960000Network Cost    Router 15479154790 Network Infrastructure1200001200000 Router Maintenance (10%)774077400 Infrastructure Maintenance (10%)60000600000 2 Mbps Network Line59940599400  2631592631590Storage Cost  366306Total Cost for 5 years 372550116515011873023