What is the total cost of ownership for an ERP?

Total cost of ownership (TCO) includes: annual license fees, implementation costs (often 2-3x the first year license), annual support and maintenance (typically 18-22% of license), customization and integration development, training costs, internal staff time, and ongoing upgrade and administration costs. Over 5 years, TCO is often 3-5x the initial license fee advertised by vendors.