# Legacy ERP On-Premises Run Cost Calculator

> Source: https://netray.co/tools/legacy-erp-on-prem-run-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Adds servers, SQL licences, admin staff, disaster recovery and vendor maintenance into one annual run cost with a multi-year inflation view.

## Category

erp-migration

## Audience

- IT director
- CFO
- Infrastructure manager

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### ERP users

**Key:** users

**Type:** number

**Default:** 60

**Min:** 1

**Step:** 1

**Unit:** users

#### Application servers (AOS or GP app)

**Key:** app_servers

**Type:** number

**Default:** 4

**Min:** 0

**Step:** 1

**Unit:** servers

#### SQL Server hosts

**Key:** sql_servers

**Type:** number

**Default:** 2

**Min:** 0

**Step:** 1

**Unit:** servers

#### Other servers (RDS, reporting, batch)

**Key:** other_servers

**Type:** number

**Default:** 3

**Min:** 0

**Step:** 1

**Unit:** servers

#### Cost per server per year

**Key:** server_cost

**Type:** number

**Default:** 6500

**Min:** 0

**Step:** 250

**Unit:** per year

**Help:** Hardware depreciation or hosting, power, OS licence and backup agent.

#### SQL Server licence and support

**Key:** sql_licence

**Type:** number

**Default:** 14000

**Min:** 0

**Step:** 500

**Unit:** per year

#### Admin and DBA effort

**Key:** admin_fte

**Type:** number

**Default:** 1.5

**Min:** 0

**Step:** 0.25

**Unit:** FTE

#### Loaded cost per FTE

**Key:** fte_cost

**Type:** number

**Default:** 95000

**Min:** 0

**Step:** 5000

**Unit:** per year

#### Disaster recovery and backup

**Key:** dr_cost

**Type:** number

**Default:** 18000

**Min:** 0

**Step:** 500

**Unit:** per year

#### Vendor maintenance and support

**Key:** maintenance

**Type:** number

**Default:** 40000

**Min:** 0

**Step:** 1000

**Unit:** per year

#### Annual cost inflation

**Key:** inflation

**Type:** slider

**Default:** 4

**Min:** 0

**Max:** 15

**Step:** 1

**Unit:** %

**Outputs:**

#### Server infrastructure

**Key:** infra

**Expr:** (app_servers + sql_servers + other_servers) * server_cost

**Format:** currency

#### Admin labour

**Key:** people

**Expr:** admin_fte * fte_cost

**Format:** currency

#### Annual run cost

**Key:** total_run

**Expr:** infra + sql_licence + people + dr_cost + maintenance

**Format:** currency

**Primary:** true

#### Cost per user per year

**Key:** per_user

**Expr:** total_run / users

**Format:** currency

#### Five-year cost with inflation

**Key:** five_year

**Expr:** if(gt(inflation, 0), total_run * (pow(1 + inflation / 100, 5) - 1) / (inflation / 100), total_run * 5)

**Format:** currency

**Primary:** true

**Chart:**

#### Five-year cost vs inflation

**Type:** line

**X:** inflation

**From:** 0

**To:** 15

**Steps:** 16

**Series:**

- five_year

**Disclaimer:** Excludes refresh capex spikes, security tooling and internal overhead allocations. Add them to server cost if material.

## Content

**Intro:** The cost of keeping GP or AX on-premises is spread across infrastructure, licences, people and backup budgets. Seeing it as one number makes the comparison with a subscription fair.

**Sections:**

#### How to use it

**Body:** Collect numbers from different owners: infrastructure for servers and DR, the DBA for effort, procurement for SQL and maintenance. Enter admin effort as full-time equivalents, even if split across several people. Include test and development servers because AX typically needs build and test environments in addition to production.

#### The method

**Body:** Annual run cost is infrastructure plus SQL licence plus admin labour plus disaster recovery plus vendor maintenance. Infrastructure is server count times cost per server. The five-year figure sums a growing series: run cost times (one plus inflation) to the fifth, minus one, divided by the inflation rate.

#### Using it in a comparison

**Body:** Take the annual run cost and compare it with a subscription quote plus the remaining infrastructure you cannot retire. Common mistakes are leaving out admin time because it is salaried, and excluding DR because it is shared. If a shared cost falls only partly away, enter the portion that truly goes away.

**Bullets:**

- Include test and build servers
- Allocate shared costs honestly
- Add hardware refresh in cost per server
- Feed the result into the payback calculator

**Cta:** Netray can help inventory what actually runs and who uses it. The calculator above works entirely on its own.

**Faq:**

#### Why include admin labour?

**Answer:** Because staff time spent patching, tuning and supporting legacy systems is a real cost, and a cloud move often releases it for other work. Count it only to the extent it can be redeployed.

#### Does this cover hardware refresh?

**Answer:** Fold it into cost per server by spreading the purchase over its useful life. A server bought for 24,000 and used for four years adds 6,000 a year.

#### Is five years the right horizon?

**Answer:** It is common for business cases and matches typical subscription terms and hardware cycles. Change the inflation slider to see sensitivity.

#### What if I already run in a hosted data centre?

**Answer:** Enter the hosting fee per server in the server cost field and set admin effort to the part you still do.

## Search terms

on premise erp total cost of ownership, ax 2012 infrastructure cost, dynamics gp server cost, legacy erp run cost, erp tco on prem vs cloud, ax aos server cost

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