How Much Does A Pegasus Opera 3 System Cost?
What factors influence the cost of a Pegasus Opera 3 accounting and business management (ERP) system?
In the article, “How much does ERP software cost” we have previously addressed the high-level factors that affect the cost of accounting and business management software for businesses.
Continuing with this theme, here we will are focusing more specifically on Pegasus Opera 3 and answering a question that we receive regularly: “How much does a Pegasus Opera 3 system cost?”
What is Pegasus Opera 3?
Pegasus Opera 3 is an accounting and business management software solution that is modular by design. It can be deployed across many of a business’ operational centres, including:
- Accounting & finance
- Supply chain
- Payroll & HR
- Service and Helpdesk Management
- Document Management
- Business Intelligence
Designed and developed exclusively in the UK, Pegasus Opera 3 is the current edition of an accounting software suite whose pedigree and improvement can be traced back over more than 25 years.
So, what factors influence the cost of a Pegasus Opera 3 solution?
There are six main factors that affect the cost of a Pegasus Opera 3 solution:
- The database engine
- Software modules & features
- Number of concurrent users
- Annual cost of ownership
- Professional services
- Other indirect costs
Some of these factors are tangible, formulaic costs. Others are more variable or indirect costs incurred as part of your system implementation process.
The database engine
One of the factors that contributes to the cost of a new car is the size and power of the engine under the bonnet. Pegasus Opera 3 was originally developed using one of the most powerful and widely adopted databases of its generation namely; Visual Foxpro.
Until comparatively recently the Foxpro database engine was the only power plant available for the Pegasus Opera 3 solution which in honesty was now, to continue the car analogy, looking more classic or even vintage. Pegasus Opera 3 has now been re-developed to work on the best in class Microsoft database platform, SQL Server.
Microsoft SQL Server is a powerful relational database system designed as a platform to store and retrieve data for many software applications including Pegasus Opera 3.
SQL Server in its full unlimited form removes the technical limitations that constrained the classic Foxpro database engine empowering businesses to grow in the confidence that they are never going to reach any of the theoretical data limits associated with SQL Server. However, as in all aspects of life, driving a Ferrari is more expensive to buy and service than a Mini as is the case with powering your software with SQL Server.
For smaller-sized businesses that do not require the database capacity and performance of a thoroughbred performance engine then there is the option to use the much restricted, SQL Server Express which offers some advantages of SQL Server but not the overall freedom and flexibility.
Remember, when you are pricing up an ERP system that uses the unlimited version of SQL Server this is an additional cost NOT included in the cost of the application. You should also carefully review the recommended hardware requirements for SQL Server.
As a budgetary guide, the cost of SQL Server-based upon SQL Server standard server edition with 10 user licences will cost approximately £3,250 not including any additional IT requirements.
Software modules and features
Earlier I mentioned that Pegasus Opera 3 was a modular solution, what does this mean? Basically, Pegasus Opera 3 is divided into separate functional elements known as modules and features that can be acquired individually. Often these elements are also grouped together into operational software suites.
For example, the Sales Ledger, Purchase Ledger, Cashbook and Nominal Ledger are all individual modules that form the part of the Financials suite. Modules like the Sales Order Processing, Sales Invoicing, Stock Control and Purchase Order Processing are grouped together as members of the Supply Chain Management suite.
The advantage of a modular accounting and business management (ERP) system is that you can ‘cherry-pick’ the functions you need and when ready expand your system into other operational areas.
Most modular accounting and business management (ERP) systems also have a System module that includes the basic housekeeping functions as well as the licence control.
With Pegasus Opera 3 most of the modules cost between £800 – £1,100 each plus there are some additional features that complement modules at a reduced cost.
Number of concurrent users
Another important contributor to the software cost calculation is the number of concurrent users (logged in at the same time) included on your software licence.
Pegasus Opera can be licensed as a simple stand-alone application (1 user license) as may be the case for a simple payroll only solution, up to an unlimited maximum which in practice may be up to 100 users. The concurrent users can be incremented on-demand by adding single additional user licenses. For example, a 12-user licence could be increased to 13 users as and when required.
Typically, an Opera user license costs between £850 and £1,100 each.
The annual cost of ownership
With the purchase of most accounting and business management (ERP) software applications, you are encouraged to purchase some form of annual software maintenance which basically entitles you to periodic software updates covering:
- Functional enhancements
- Legislative compliance
- Fixes to undocumented features also known as “bugs”
Typically, the cost of annual software maintenance ranges between 10% and 20% of the software list price depending on the application. With Pegasus Opera 3 the annual software maintenance is 10% of the software list price.
Your ERP supplier or support consultants will probably provide telephone and remote support services for which they are probably going to charge somewhere between 5% and 15% of the software list price.
As a budgetary guide, these software maintenance and support fees are likely to range between £500 and £3,000 per annum depending on your ERP system configuration and cost value.
Installation and Training
Firstly, please don’t expect the cost of software installation, configuration and training to be included in the cost of the Pegasus Opera 3 software because it almost certainly won’t be.
As a budgetary guide, I would expect the professional services on an ERP implementation project to cost a similar amount to the software over the lifetime of the project. Importantly, this is a project expense that you can have a direct influence on the overall cost through your level of commitment and resources made available to the project. So many ERP projects overrun their cost budget and delivery deadlines because of poor change management and commitment to the new system.
Most ERP suppliers will be charging between £600 to £1,200 per man-day for their services which means the more you can “do it yourself” the lower the consulting charges will be.
I am frequently asked, “Should we employ a dedicated ERP consultant to manage the project?” The answer to this question for a Pegasus Opera 3 project should almost certainly be “No”.
A typical Pegasus Opera 3 implementation project would not be of sufficient scale to warrant a dedicated ERP consultant, rather this role should be taken on by an experienced internal employee or the supplier’s project management consultant.
Other indirect costs
The factors we have discussed so far have been tangible costs for a Pegasus Opera 3 accounting and business management (ERP) system, however, there are some other less obvious costs you should include in your project planning.
Internal employee costs and resources are often overlooked when planning a new ERP system. Implementing a new ERP system will require significant commitment in terms of time by the members of the project team and the associated subject-matter experts. If insufficient resources are made available then a project of this type is destined to fail. You must release the key project personnel to focus on the new project rather than their normal duties.
I hope this has given you an insight into the factors that influence the cost of a Pegasus Opera 3 accounting and business management (ERP) system. Pegasus Opera 3 systems can range from as little as £1,500 for a payroll only system up to over £15,000 for a comprehensive distribution solution supporting 15-30 users.
Finally, with the growing popularity of cloud-based ‘software as a service’ (SaaS), the ownership model for ERP software has become much more flexible. Ownership options ranging from the upfront purchase of a traditional perpetual software licence to never-ending subscription rental plans are commonplace these days, and Pegasus offer the whole gamut of ownership options.
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