Ariba Contract Pricing - why 5.2/10?

Ariba Contract Management Review
ITQlick Score: 77/100
ITQlick Rating: (4.6/5)
Pricing: 5.2/10 - average cost
Category: Procurement -> Ariba Contract -> Ariba Contract pricing
Ranking:Ranked 25 out of 78 Procurement systems
Company: Ariba
Pricing: starts at $8,000 per license
Typical customers: Start up, Small business, Medium business, Large business
Platforms: Desktop, Cloud
Links: Ariba Contract review, Ariba Contract alternatives
Shlomi LaviShlomi Lavi / Nov 14, 2020

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What is Ariba Contract's cost rating? (5.2/10)

When comparing Ariba Contract to its competitors, on a scale between 1 to 10 Ariba Contract is rated 5.2, which is similar to the average Procurement software cost. Ariba Contract offers few flexible plans to its customers with the basic cost of a license starting from $8,000 per license. Read the article below in order to calculate the total cost of ownership (TCO), which includes: customization, data migration, training, hardware, maintenance, upgrades, and more.

You can also leave your info with us to get a free custom quote with a break downs for your business needs.

Procurement Software Price Ranges

The starting price for a typical Procurement Software is in the range of $0 and $40 per month. The majority of vendors offer their products using the “per month/per user” price format. They may also bundle additional service charges for features such as integrations to third-party software, advanced report and portals for suppliers.

  • Small businesses can expect to pay $7-$1500 a month for a procurement software product. For example, Quartzy pricing starts at $39 per month, Deltek Costpoint costs around $7 a month for the first three months, and Khareed E-Procurement goes for $1500 a month. Some other vendors would offer annual licenses as well. One example is Market Dojo, which costs about $1550 per year for each user.
  • SMBs: The pricing for procurement software products for Medium-sized organisations is typically between $1 and $500 per month. For instance, CommonPage pricing starts at $9 a month, SnapAP cost around $500 and ALTO eProcure pricing goes for $1 a month. Gluh begins at around $100 a month as well.
  • Large Establishments can expect to pay upwards of $11 a month for Procurement software. For context, Oracle Procurement Cloud pricing starts at $575 per month, Tradogram at $15 a month and Bellwether goes for $18 a month for its Enterprise plan.
  • Free software: Some vendors offer free versions of their Procurement software. For example, Spendwise provides a free version, and a subscription plan of $9 a month if the user needs it. Chondrion offers a free plan for the first month. Applegate PRO is free as well, but with paid plans starting at 1 cent a month.
  • Procurement software products for Windows OS have a subscription price up to $350 a month. For instance, WebReq pricing goes for $20 a month and Avartantech for $350 per month. Other vendors charge a one-time fee, like Ourshared P2P, which starts at $6500 one-time licensing.
  • Web-based Procurement Solutions typically start at $19 a month. Precoro, for example, starts from $29 a month and also offers large plans of $19 per month. Also, ISNetworld charges $680 a year. Some other vendors charge one-time fees; for example, Panacea costs $7000 for a one-time licensing.
  • macOS users can expect to pay up to $775 for a procurement software product. For example, e-proCAT charges $499 one-time fee, FirstBIT pricing goes for $8 per month for the first three months, and Gatekeeper costs up to $775 monthly.

What is the cost breakdown of Procurement implementation?

When it comes to selecting Procurement tools, buyers are primarily concerned about the cost. In fact, it is the cost that determines whether a potential buyer would go with the product. True, there is no one-size-fits-all formula to determine the “worth” of a business application, but as a software buyer, you want to make sure you get the best value for your money, without having to dig a big hole in your pocket.

Understanding the exact price of a Procurement system isn't easy as the overall cost of software includes the cost of a license, subscription fees, training, customization, hardware, maintenance, support, and other related services. It's essential to take into account all of these costs to gain an understanding of the system's "total cost of ownership."

What are the typical Procurement pricing models?

There are primarily three common pricing models – Perpetual License, Subscription, and Commercial Open Source.

  • Subscription/Software-As-A-Service: - Not relevant for Ariba Contract
    Under this pricing model, the system is accessed over the internet, as opposed to installed on-premises. The payment is made either on a per user basis or subscription basis. Ideally, customers are required to pay a recurring monthly fee until a specific period for using the tool. Subscription pricing model is more common with Software-as-a-Service (SaaS) apps.
  • Upfront cost for customization and integration is less compared to perpetual license cost because there is not much flexibility with SaaS systems in this area.
  • Recurring cost is greater as customers are required to make monthly payments as a subscription fee. Additionally customers using premium support services must pay an extra fee.
  • All in all, the total cost of ownership in the both cases is almost the same and may span over a period of 7-10 years, though you may have to pay a higher perpetual license fee upfront. The total cost may vary from starter to mid range to enterprise level apps in both cases.
  • Perpetual license: - Relevant for Ariba Contract
    A common pricing model for on-premise applications, perpetual license requires a customer to pay an upfront sum to own the tool or other intellectual property on-premises for a fixed term.
  • Upfront cost involves the fee for installation, customization, and integration with existing systems, besides perpetual license fee.
  • Recurring cost is low in this pricing model and may include the cost for updates, maintenance, upgrades, and patches. Some vendors do offer premium support services, which come for an extra price.
  • Commercial open source: Not relevant for Ariba Contract
    The customer can acquire the system free of cost without having to incur any upfront license fee. As a customer, you’re solely responsible for the ongoing maintenance, upgrading, customization, and troubleshooting of the application to meet your specific needs. You are on your own for providing end-user support, since you are not locked in with a vendor-supplied system solution.

How much would it cost to customize Ariba Contract? (and is it relevant)

If you need specific features in your system catering to your specific business requirements, the vendor will charge customization cost, depending on your needs and feature requirement. Ideally customization cost is more complex to calculate compared to licensing cost.

Some apps allow you to easily combine data from multiple sources, without any complicated query requirements, while some others can be embedded into different applications to provide enhanced reporting. If you seek products that support customizable dashboards and predictive analysis to identity possible trends and facilitate decision making, you may have to pay higher for all the customization features.

Additionally, the following factors may affect the cost of customization:
  • User interface changes
  • Configurable dashboards
  • Data elements required for tracking
  • Forms to collect additional data
  • Dashboard, management and operational reports that are needed.
  • Workflows and how complex they are
  • Forms to collect additional data
Here are some questions to answer: How much customization is needed? How many systems do you want to integrate to? Does your company work like industry standards or does it have its own customized processes? What kind of special reports are needed?

In order to calculate the cost of customization you can use the following estimates:

  • Minimal customization - integrate with 1-2 systems: $2,500
  • Standard customization - integrate with 3-5 systems: $10,000
  • Fully customized system - integrate with more than 5 systems: $25,000

Cost of data migration when migrating to Ariba Contract? Relevant for Ariba Contract

Most companies opt for data migration services from a vendor, which raises the cost of product ownership. If you choose to transfer data on your own, you can avoid paying the cost of data migration.
Data migration cost depends on the amount of data to be transferred, your current software, availability of migration tools, complexity of data, and gaps between the existing system and the new system.

If your data is stored in Excel spreadsheets, then it may incur you a lot of time and money to migrate data from Excel.
By involving a business services provider in data migration, you are asking them to offer additional services, for which you may have to pay extra.

As a rule of thumb the cost of data migration depends on how many records you want to migrate. Records can include the number of customers, invoices, financial transactions, products, versions, etc. Here is a list you can use as a rule of thumb:

  • 1,000 records: $500
  • 10,000 records: $2,500
  • 100,000 records: $10,000
  • 1,000,000+ records: $25,000

What is the cost of training for Ariba Contract? Relevant for Ariba Contract

As a buyer, you are required to pay extra for in-person training, though some vendors offer web-based solutions as part of the package. The cost may involve end-user training, video/self, group, department, and training the super users.

The cost is mainly derived from the approach that you select for your organization:
  • End-user training
  • Group/Department
  • Video /self
  • Train the trainer/super user

Here are some questions to answer: How many groups (different departments, usages, type of users) are needed?

In order to calculate the cost you can use the following estimates:

  • 1-2 Sessions: $500
  • 3-4 Sessions: $1,500
  • 5-7 Sessions: $2,500
  • 8-10 Sessions: $5,000

How Ariba Contract pricing compares to alternative Procurement solutions?

When comparing Ariba Contract to alternative systems, on a scale between 1 to 10 Ariba Contract is rated 5.2, which is similar to the average Procurement cost.
The two main competitors of Ariba Contract Management software are Concord and Beakon software. Concord software is a comprehensive cloud-based Contract Lifecycle Management solution whereas Ariba Contract Management Software is a cloud-based supply chain and e-procurement solution for businesses of any size. Concord software is suitable for small and medium market businesses while Ariba contract management is suitable for any size of the business entity.

Concord is a product of Concord founded in 2015 in the US, but in contrast, Ariba software is a product of Ariba Company established in 1996. Concord offers documentation, webinars, live online and In-person training while Ariba offers training only through in-person means.

Beakon software is a cloud-based LMS (learning management software) modeled to assist users manage and enhance safety & compliance in high-risk industries. On the other hand, Ariba Contract Management Software is a cloud-based supply chain and e-procurement solution for businesses of any size.

Beakon software is a product of Beakon Company founded in 2009 in Australia, but Ariba SAP is a product of Ariba Company founded in 1996 in the US. Beakon software is hosted in the cloud and installed on-premise whereas Ariba contract management is cloud-based.

How can the team at ITQlick help?

The science of TCO (total cost of ownership) may not be easy to calculate. If you seek to get detailed info about the TCO, get in touch with ITQlick experts. Contact us today and get up to date, detailed quotes.

Author

Shlomi Lavi

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Shlomi holds a Bachelor of Science (B.Sc.) in Information System Engineering from Ben Gurion University in Israel. Shlomi brings 15 years of global IT and IS management experience as a consultant, and implementation expert for small, medium and large size (global) companies.