Most organizations realize that the cost of implementing ERP software is more than just the licensing fees. There are the annual maintenance fees, implementation services costs and of course, hardware costs.

Many companies carefully budget for the costs of the software, the services, and everything in-between, but they forget to factor in the cost of the hardware required to make it all run. Forgetting this cost can be a painful stab to your budget.

Of course, now you have the option to eliminate the hardware costs altogether by deploying ERP software “in the cloud” and paying a predictable monthly fee, but cloud ERP is not for everyone and comes with considerations of its own.

If your organization deploys an on-premise solution instead of a cloud solution, the hardware costs generally include the server and the SQL operating system. Most ERP vendors will strongly recommend that you have a dedicated server. Servers come in all price ranges – from the Honda Civic” to the “Rolls Royce” versions – so you will need to rely on a trusted IT advisor. In most cases, you need a SQL server operating system (which might be included with your new server purchase or you may need to purchase it separately).

Also, your organization should check the system requirements for the ERP system you choose. It may turn out that other existing software/hardware needs to be upgraded as well. For example, many of our clients are finding that they need to make other infrastructure investments in order to be compatible with the new release of Microsoft Dynamics GP 2013.

If you are running any of the following, they will not be compatible with a new Dynamics GP 2013 system:

  • Windows server 2003 (or earlier)
  • SQL Server 2005 (or earlier)
  • Windows XP (or earlier)
  • Office 2007 (or earlier)

When talking about IT purchases there are so many different options available to you. Following is some information you may need to help you decide as well as some sample costs:

Microsoft Dynamics GP 2013 Infrastructure Compatibility Highlights:


Windows Server:

  • No longer supported: Windows server 2003 (or earlier)
  • Options:
    • Basic: Windows Server 2008R2 (approximately $6,000 for Dell or HP)
    • Progressive: Windows Server 2012 (same)

Database server:

  • No longer supported: SQL Server 2005 (or earlier)
  • Options:
    • Basic: SQL Server 2008 R2 ($1,000-2,000 depending on number of users)
    • Progressive: SQL Server 2012 (same)


Operating System Software:

  • No longer supported: Windows XP (or earlier)
  • Options:
    • Basic: Windows 7 (if an upgrade from XP, purchasing new PC is best bet)
    • Progressive: Windows 8 (same)

Microsoft Office Software:

  • No longer supported: Office 2007 (or earlier)
  • Options:
    • Basic:  Office 2010 ($200 – $500 based on type of license purchased)
    • Progressive: Office 2013 (same)

Minimum Workstation Space Requirements:


2GB Hard disk space

32-bit ODBC DSN is required

Note: SharePoint Services 3.0 and MS Office SharePoint Server 2007 no longer supported.

If you are planning to install Microsoft Dynamics GP and need to make infrastructure upgrades, now is a perfect time to evaluate your entire IT strategy.  Do you want to move to the cloud, virtualize or upgrade your workstations? Do you have enough storage space? Do you have a backup plan? What about remote access, web servers and security? These are all great questions to ask your IT provider.

You can easily get a ballpark estimate of the cost of Microsoft Dynamics GP 2013 licenses, maintenance fees and implementation costs. (In fact we offer this with our Dynamics GP Quick Quote Price Tool). Then you can review the system requirements list with your internal IT team or outsourced IT expert to make sure there are no other hidden costs to factor into your budget.

Note: The inclusion of guest posts on the Panorama website does not imply endorsement of any specific product or service. Panorama is, and always will remain, completely independent and vendor-neutral. If you are interested in guest blogging opportunities, click to read more about our submission guidelines.

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