1

VINSUN INFRA ENGINEERING

ERP ON PREMISE OR ON CLOUD
SUBMITTED BY:
GROUP G
Nimish Joshi PGP08163
Nitin Wannewar PGP08164
Pankaj Tewari PGP08165
Pavankumar S PGP08166
Pooja Goyal PGP08167
 Current Situation 2

 VINSUN Infra Engineering Pvt. Ltd. had been providing electrical and civil services
across India for a decade
 It offered electrification solutions and services for a variety of production and service
industries, telecommunication companies, commercial buildings, institutional
campuses, residences and hospitals.
 VINSUN was largely focused around Indore and serviced approximately 40 per cent
of the cold storage plants in the area
 Its Current information management system is dependent on individual employees
since data is maintained on local computers and searched manually when required
to access
 Ruchira Kulkarni, chief information officer, has suggested ERP solutions could help to
resolve these issues
 Two alternatives in mind: ERP on premises or ERP on cloud
 Bluechip Corporation Vs 3

Codeautomations
Versatile ERP Lower cost ERP structure

Customization options Lack of experience

Start-up
Nice track record
 Analysis 4
Bluechip's on Code automation on Codeautomation on
Item
Premises Premises Cloud
Workstation (x6) 209700 209700 209700
Workstation UPS (x6 ) 22290 22290 22290
Laptops (x2 ) 132488 132488 132488
Server 100000 70000
Backup up server 100000 70000
Server UPS (x2 ) 7750 7750
Initial Hardware cost 572228 512228 364478
Hardware maintenance (yr 1) 57222.8 51222.8 36447.8

ERP Software (x8) 960000 240000

Consulting 80000
Deployment/ Installation cost 520000 200000
Training 180000
Service Fee (x8 x12) 192000
Data Storage Cost 60000
Software Cost 1740000 440000 192000
Software maintenance (yr 1) 172800 36000

Network
Router 15479 15479 15479
Infra set up 120000 120000 0
Router maintenance 1547.9 1547.9 1547.9
Infra maintenance 12000 12000 0
Internet (1 yr) 11988 11988 11988
Total network yr1 161014.9 161014.9 29014.9
 Analysis 5
Bluechip's on Code automation on Codeautomation on
Item
Premises Premises Cloud

Total year 1 cost 2703265.7 1200465.7 621940.7

Ten year cost

Hardware Initial 572228 512228 364478
Hardware yearly Maintenance rate
572228 512228 364478
(x10)
Software Initial 1740000 440000 192000
Software yearly Maintenance rate
1728000 360000 0
(x10)
Data Storage Cost (compounded for
956245.4761
10 Yrs)
Network Router and infrastructure
135479 135479 15479
setup
Router maintenance (x10) 15479 15479 15479

Net Infrastructure Maintenance(X10) 120000 120000 0

Internet (x 10) 119880 119880 119880

Total Cost of Ownership( 10 Yrs) 5,003,294 2,215,294 2,028,039.476

 Results 6

 Premise solution by Bluechip exceeded the net IT budget of VINSUN i.e.

1,200,000 millions in the year 2010-11.
 ERP systems implementations have failed in many cases, so company
should not invest a large sum in such technology when there is already
a resistance to change in the company.
 From the above calculations it is clearly visible that premise solution and
Cloud solutions provided by codeautomation are under budget.
 Over a 10 year period Codeautomation premise and cloud solutions’
prices are comparable.
 Premise ERP system is more secure as compared to ERP on cloud
system.
 Satav should go for premise solution provided by codeautomation
 7

Thank you