Traditional enterprise LMSs cost between $500K – $2Million for one facility, between software licensing, industrial engineering, implementations, and ongoing licensing and support fees. Cloud based LMSs, like Easy Metrics, require no hardware, greatly simplified software implementation, lower up front costs and lower support costs.
Traditional Enterprise is going to charge a large upfront cost for the software and hardware implementation, and then yearly maintenance fees of 15%. That might last 5 years but then you need to buy and implement the upgraded system. That starts the billing over again. Rigidly coupled enterprise systems require ongoing support of industrial engineers to maintain and keep current the labor standards, which naturally change when new customers are added or processes change.
Cloud-based LMSs don’t charge a lot up front, but have a monthly subscription (Saas). This makes it much easier to achieve a positive ROI because you don’t have a huge investment to overcome. With a cloud system, you also get all the upgrades as they are rolled out instead of needing to wait for periodic updates or an upgrade to the new version. With a cloud you don’t have to purchase, install and maintain servers onsite. This reduces the IT involvement significantly.