AMR Research survey data shows how companies are spending their ERP operating budget dollars and why many are struggling to achieve the right mix. Lately, much of the furor encircling ERP costs has revolved around software maintenance and support fees. The global recession has forced customers of Big ERP vendors—SAP, Oracle, Lawson, Infor—to question the value they receive from the fees. According to AMR Research, however, all parts of the ERP budgeting pie “are under more scrutiny.” In an October report, Bill Swanton, a VP and research fellow at AMR, breaks down survey data that shows overall ERP operating budget spending. (To participate in the survey, click here.) Read the Enterprise Software Unplugged Blog Swanton notes that employee salaries and service-provider fees are the two biggest items associated with the ERP budget. It’s also noticeable that application and database maintenance fees are another substantial chunk of the ERP spending pie—”a large and growing expense,” Swanton writes. “Running hundreds (and, in a few cases, over a thousand) of dollars a year per user, we did find more variation than expected,” he writes of the results. “Some of this is courtesy of companies paying fees for shelfware that has yet to be deployed or under utilized because of the declining user base in the recession.” Swanton lays out some tough questions facing facing CIOs and their companies: Are you getting all the value from ERP that you expected? Does the CFO believe your benefits numbers? Does the business believe all this effort is worth it? Are you doing the right things to get and demonstrate the value of your hard work in improving business processes with ERP?Right now, Swanton adds, “Too many companies are struggling to get this right.” Do you Tweet? Follow me on Twitter @twailgum. Follow everything from CIO.com on Twitter @CIOonline. Related content brandpost Sponsored by Freshworks When your AI chatbots mess up AI ‘hallucinations’ present significant business risks, but new types of guardrails can keep them from doing serious damage By Paul Gillin Dec 08, 2023 4 mins Generative AI brandpost Sponsored by Dell New research: How IT leaders drive business benefits by accelerating device refresh strategies Security leaders have particular concerns that older devices are more vulnerable to increasingly sophisticated cyber attacks. By Laura McEwan Dec 08, 2023 3 mins Infrastructure Management case study Toyota transforms IT service desk with gen AI To help promote insourcing and quality control, Toyota Motor North America is leveraging generative AI for HR and IT service desk requests. By Thor Olavsrud Dec 08, 2023 7 mins Employee Experience Generative AI ICT Partners feature CSM certification: Costs, requirements, and all you need to know The Certified ScrumMaster (CSM) certification sets the standard for establishing Scrum theory, developing practical applications and rules, and leading teams and stakeholders through the development process. By Moira Alexander Dec 08, 2023 8 mins Certifications IT Skills Project Management Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe