VINSUN INFRA

ENGINEERING
ERP on Premise or on
Cloud

GROUP 1
Name

Roll No.

Aman Dhawan

14PGHR06

Aneesh Kedlaya

14PGHR08

Bhavini Rai

14PGHR18

Honey Bohare

14PGHR27

Narendiran

14PGHR40

Siddhant Kedia

14PGHR58

Vagisha Goindi

14PGHR59

About VINSUN Infra Engineering Pvt. Ltd.

Electrical & Civil services (pan India)

Founded in 2002 by Sunil Satav
Turnover: 45.1 million (currency units)
Recently diversified into
Electrical work for commercial complexes

Chief Information Officer (CIO): Ruchira Kulkarni

Issues at hand

Challenges in terms of information overload

Data not readily available
Outdated Data (more than a year)
Large Data accumulation (Excel files)
Lack of
Data Integrity
Data Redundancy
Incompleteness of data

Poor maintenance of data back-up

The Dilemma
To find a way to access accurate information more rapidly
Whether to go for ERP or not ?
ERP on premise or ERP on Cloud ?
ERP Implementation by
ERP by Bluechip corporation (on premise)
ERP by Codeautomations (on premise)
ERP by Codeautomations (on cloud)

Pros & Cons of ERP

Pros

Greater efficiency
Allows focus on core activities
Facilitates adoption of best practices
Eliminates losses from outdated information
Back-up can be accessed anytime

Cons
May be more costly than beneficial
Employees resistance

ALTERNATIVES
PROS

CONS

Issues associated with Implementation

Some managers (Rajesh & Subhash) are against the idea of ERP
implementation for following reasons
Results cannot be predicted (i.e. returns might be NIL)
Efficiency might decrease
Difficulty in Training the existing workforce

Budget constraint: 3% of sales = 13,53,000

[Sales for 2010-11 = 45.1 million]

Choice of cloud or premises is difficult because Cloud database could compromise Data Security
Premise database results in Additional Costs

Financials: BLUECHIP (On Premise)

Financials: CODEAUTOMATIONS (On Premise)

Financials: CODEAUTOMATIONS (On Cloud)

FINDINGS
Bluechips quotations (i.e. 24,47,707) is way over the budget (i.e.
13,53,000). Hence, it is REJECTED.
Codeautomations services on premise (i.e. 10,87,707) is within
the allocated budget. Hence, it is FEASIBLE.
Codeautomations services on cloud (i.e. 3,79,957) is well within
the allocated budget. Hence, it is FEASIBLE.

PV of ongoing costs for Codeautomations (for next 5 years)

ECONOMICAL

COSTLIER

CONCLUSION
Codeautomations on premise seems to be the best option
for the following reasons
It is well within the budget allocated by VINSUN
It is advantageous over the long run
Maintenance of data over cloud increases issue of Data Insecurity
On Cloud implementation is costlier over the long run
However we still need to consider other factors such as organisational
acceptance & risk of failure

Thank You