erpimplementationcost.com
Phase 02 of 08

Licences (year 1)

Typically 25-50% of total project cost. Per-user / per-tenant / per-module subscriptions for the first 12 months. Larger share at the small / mid-market end (where licences dominate); smaller share at enterprise (where SI services dominate).

What's included

  • Base subscription or per-user fees
  • Module licences (Manufacturing, Advanced Inventory, etc.)
  • Sandbox / non-prod environment licences
  • Add-on connector licences if vendor-direct
  • Mandatory first-year support tier

Common overruns

  • Second-year licence escalation (renewal uplift, often several percent a year and higher without a contractual cap)
  • Forced tier upgrades to enable SSO, audit logs, or API access
  • Sandbox environments not included in headline per-user price
Basis

Digital Signet allocation model. Licence share reflects the widely-cited ratio of roughly 1.5 to 2.5 times licence cost for implementation (Software Path 2022, 1,338 projects).

Reviewed 2026-09-04
Other phases
01Discovery & design03Configuration & customisation04Data migration05Integration06Training07Change management08Hypercare (3-6 mo post-go-live)