SAP implementation company

We planning to use SAP ERP in our new factory I contact with SAP and they told me that I have to make the deal with one of SAP partners for implementation and training
I contacted with one of those partners and i got the offer is  150,000 $ for the SAP ERP licenses
and the partner need 200,0000 $ for implementation and training only i am surprised from the amount allocated for implementation only.
What can I do
The license price looks good for me but the implementation cost is exaggerated.
Please advise
LVL 8
TemodyPickalbatros, IT ManagerAsked:
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Ankit PareekOnline MarketingCommented:
i think its not so costly for your all  projects. as we know that price for licenses is one year only. On next year you need to pay again. for implementation it is very difficult process and takes time to fully implement. If one of SAP partner gives you these rate. why not try with other partner. In your area or nearby you can find several partner who offer SAP services

You can find SAP partner here
http://go.sap.com/partner.html
TemodyPickalbatros, IT ManagerAuthor Commented:
No the 150,000 $ fro one time after that I will pay 15,000 $ only for License Annual Support
Mohammed KhawajaManager - Infrastructure:  Information TechnologyCommented:
SAP implementations are always expensive.  Depending on your organization (i.e. divisions, business units, modules to be implemented, etc.), it could be very, very expensive.  Just so you know, the initial part of the project would be to understand how everything is done currently and then map it to how it should be done in SAP (this part is called blueprinting).  After that configuration would start, followed by data imports, parallel runs, testing, validation, modifications, etc. and then a parallel run side by side with your current environment (i.e. month-end or quarter-end).

My only suggestion would be to NOT cheap out on the partner you choose, start training someone in-house to become your SAP Basis (i.e. administrator).  Another thing you should do is at the very start sort our your reporting applications.  SAP databases is not easily understandable and somethings cannot be obtained as it could be due to encryption, complicated mappings, etc.

Also note that most partners will try to push you to HANA.  HANA was designed for customers such as Amazon, etc. who does lots of transactions.  HANA is in memory processing, which means very expensive and complicated.  If you are a small manufacturer or organization, HANA will be an overkill.  Get references and talk to other entities of similar business and size to see how SAP has impacted them.  In most small businesses cases, SAP is an overkill.

With respect to licensing costs, talk to some companies such as UpperEdge who can make your licensing easier and in some cases result in 50% cost savings.  Engage some off-shore companies to get an idea as to much saving they can bring (i.e. checkout http://www.birlasoft.com/sap/ and well as connect with Pankaj Kumar Jain on LinkedIn).

These are my two cents and good luck to you.  One thing to remember is that when the partner comes in, there will be 2 to 6 consultants on site where only 1 or 2 will be an expert and the others will be learning from your implementation and you will be paying for it.

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Mohammed KhawajaManager - Infrastructure:  Information TechnologyCommented:
One more thing, almost all integrators will not install SAP from scratch for you.  What they will do is provide you VMware or Hyper-V  VMs already created for you to import it to your virtualization environment.  What they will do perform the configuration for your environment.  Also note that you have the option of purchasing SAP with runtime licenses for SQL which means you will not need any SQL CALs, however, as it licensed for SAP only, legally you can add any non-SAP databases on the server.
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