Total Cost of Ownership of Sage 100 vs Sage Intacct

Businesses need to evaluate the Total Cost of Ownership (TCO) to understand the long term financial impact. For companies looking to move from Sage 100 to Sage Intacct, TCO gives a clear way to see costs and benefits over time. Sage 100 and Sage Intacct have different cost structures. Sage 100 requires on premise infrastructure, periodic upgrades, and ongoing IT support. Sage Intacct is cloud based with built in maintenance, lower IT overhead, and greater scalability.

This blog breaks down the TCO of Sage 100 vs. Sage Intacct to help businesses make informed decisions about whether to continue using Sage 100 or migrate to Sage Intacct.

Total Cost of Ownership (TCO) is a way to evaluate the full cost of buying, using, and maintaining a system over time. For ERP systems like Sage 100 and Sage Intacct, TCO is more than the initial purchase price or subscription fee. Businesses must also account for setup, customization, training, upgrades, and ongoing support. Infrastructure costs like hardware, IT, server maintenance, and security add to the expense. Additionally, efficiency gains like streamlined accounting processes or automation also impact the total cost.

Calculating TCO is a complex process but it is crucial to help businesses make better decisions. Many companies focus only on upfront costs and miss the long-term expenses that affect budgets. A complete TCO analysis of Sage 100 and Sage Intacct compares all costs to find the best long-term value. Deployment models, scalability, and IT management requirements all play a role in long-term expenses. Understanding these factors ensures organizations choose an ERP solution that aligns with their financial and operational goals.

To compare the total cost of ownership for Sage 100 and Sage Intacct, you need to look at all the costs associated with software ownership over time. This includes ongoing costs and factors such as software maintenance, infrastructure needs, IT support, and downtime risks. Sage 100 is a traditional on-premise solution that requires an investment in infrastructure as well as ongoing maintenance costs. Sage Intacct is a cloud-based ERP system that shifts many of the infrastructure responsibilities to the service provider. The subscription cost of Sage Intacct is all-inclusive and reduces the need for infrastructure investments and internal IT resources. It is recommended to evaluate the TCO of both of these systems to determine which one is best for your business.

Sage 100 is an on-premise ERP solution that requires businesses to invest and manage their own infrastructure. This includes hardware, servers, and ongoing IT support. The costs of maintaining and upgrading the system add up over time. Every few years, businesses need to upgrade their system to stay current, which requires additional costs for implementation, data migration, and retraining employees. The need for in-house or outsourced IT support further increases long-term costs.

Sage 100 also comes with higher risks related to system downtime, backup failures, and disaster recovery planning. Businesses must maintain server licenses and backup solutions to protect data. Infrastructure costs fluctuate depending on storage needs and security requirements. These costs add complexity to budgeting and make long-term cost planning more difficult.

Key cost factors for Sage 100 include:

• System maintenance: Major upgrades every three years, requiring IT effort and potential downtime.
• Infrastructure costs: Expenses for on-site servers and storage.
• Windows server licenses & disaster backup software: Necessary to maintain security and recover data.
• IT services & support: Requires internal or outsourced IT resources for maintenance and troubleshooting.
• Downtime risk: Hardware failures, software upgrades, and security patches can cause operational disruptions.

Sage Intacct is a cloud-based ERP that eliminates the need for on-premise hardware and infrastructure costs. The subscription price includes system maintenance, storage, security, and backups. Sage manages software updates and system reliability, reducing the burden on internal IT teams. Unlike Sage 100 which requires periodic upgrades, Sage Intacct has automatic updates without disrupting business operations, so you always have the latest features without additional costs.

As Sage Intacct is cloud-based, businesses can scale their subscription plan as needed. This flexibility helps control costs by adjusting resources based on demand. With a 99.8% uptime guarantee, Sage Intacct minimizes downtime risk. Lower IT overhead, reduced hardware costs, and streamlined upgrades makes Sage Intacct a cost effective choice for businesses looking for predictable and scalable ERP costs.

Key cost benefits of Sage Intacct include:

• Subscription-based model – Includes software, maintenance, and cloud hosting in a single fee.
• No hardware costs – The burden of maintaining servers and storage shifts to the cloud provider.
• Lower IT service costs – Sage manages software updates, reducing the need for in-house or outsourced IT support.
• Scalability – Businesses can adjust subscription plans as needs change, avoiding major infrastructure upgrades.
• Streamlined upgrades – Updates happen automatically with minimal disruption, ensuring businesses always have the latest features.

Comparing the TCO of Sage 100 and Sage Intacct highlights the differences in cost structure between the two systems. While Sage 100 offers control over on-premise deployment, cloud solutions like Sage Intacct reduce infrastructure and maintenance costs. With Sage 100, businesses must budget for periodic upgrades, IT support, and hardware replacements. Sage Intacct includes these costs in a predictable subscription fee, lowering long-term costs. The table below compares the TCO for both solutions.

Note: the TCO factors above are quantitative estimations, and the actual costs may vary based on specific organizational needs and dynamics. Organizations are encouraged to conduct thorough analyses based on their unique requirements and circumstances.

Understanding the TCO of your current software helps with long-term planning. Sage 100 users should evaluate the cost of their system against the cost of migrating to Sage Intacct. Comparing TCO over time shows how costs change and helps you decide if switching to a cloud-based solution makes sense. The line graph below shows the TCO of both systems over 10 years.

The line graph compares the TCO of maintaining Sage 100 against migrating to Sage Intacct. For Sage 100 users, costs include system maintenance, hardware and storage, Windows server licensing, disaster recovery software, IT staff, and downtime risk. These costs increase as businesses grow. The numbers in the graph reflect the lower range of estimated costs, meaning actual expenses could be higher.

For Sage Intacct, the higher cost in Year 1 includes the migration investment and implementation fees. By Year 3, costs start to level out. Unlike Sage 100, where expenses rise due to infrastructure and IT demands, Sage Intacct follows a stable, predictable increase. The cloud-based model removes the need for on-premises hardware, lowers IT overhead, and includes automatic updates, reducing long-term costs.

This comparison shows that while migrating to Sage Intacct requires an upfront investment, its TCO is lower over time. Businesses that switch gain a stable cost structure, fewer infrastructure expenses, and better financial control. Over the long term, Sage Intacct offers a more cost-effective solution for growing companies.

Migrating to Sage Intacct provides more than cost savings. Businesses gain access to a modern, cloud-based system that improves efficiency, security, and financial management. Sage Intacct reduces manual processes, improves reporting, and integrates with other business applications. The system simplifies accounting operations while providing better visibility into financial performance.

Key benefits of migrating to Sage Intacct:

• Anywhere, anytime access: Secure cloud-based system
• Faster close process: Reduces close time by 40–70%
• Multi-dimensional reporting: Eliminates the need for spreadsheets
• Increased AR and AP efficiency: Improves processing by 80%
• Automatic intercompany postings: Reduces manual work
• Single login for all entities: Provides easy access to consolidated financials
• Seamless integrations: Connects with other business systems
• Single system of record: Centralizes financial data
• AI-powered accounting: Automates accounting processes
• Enhanced financial controls: Strengthens compliance and oversight

Sage Intacct improves accuracy, reduces time spent on financial tasks, and supports business growth. Businesses that migrate gain better financial control and a system designed for efficiency.

Calculating and estimating TCO requires a strategic approach. Businesses must assess the full cost of their current system and weigh the long-term benefits of migrating to a modern solution. MicroAccounting specializes in helping businesses evaluate TCO and determine whether Sage Intacct is the right fit. With expertise in Sage 100 and Sage Intacct, MicroAccounting provides a structured approach to ERP migration, ensuring a smooth transition with minimal disruption.

MicroAccounting is a Diamond Sage Business Partner with more than 1,000 successful implementations across a range of industries. With a 95% client retention rate, MicroAccounting has a proven track record of delivering ERP solutions that improve efficiency and financial management. Businesses rely on MicroAccounting for guidance in ERP selection, migration, and ongoing support.

Then include a bulleted list of our services:

• TCO analysis: Our team at MicroAccounting will perform a comprehensive TCO analysis for clients, providing a clear understanding of the financial implications of their current system and potential alternatives.
• Migration and implementation: Our experienced team ensures a seamless transition from Sage 100 to Sage Intacct, minimizing downtime and disruption.
• Support: Post implementation, we offer comprehensive Sage Intacct support to ensure that your system runs smoothly, updates are managed efficiently, and any issues are resolved.

MicroAccounting helps businesses reduce costs, improve financial visibility, and increase operational efficiency with Sage Intacct. With deep industry experience and a commitment to client success, MicroAccounting ensures a seamless migration process and long-term value.

Understanding TCO is key to making a smart ERP decision. While Sage 100 has been a reliable choice for many businesses, its long-term costs continue to rise due to maintenance, IT support, and infrastructure demands. Sage Intacct offers a cost-effective, cloud-based alternative that provides greater flexibility, reduced IT overhead, and predictable pricing.

If your business is considering a move to Sage Intacct, MicroAccounting can guide you through the process. With deep expertise in Sage ERP solutions, our team ensures a seamless transition with minimal disruption. Contact us today to discuss your TCO analysis and explore the best path forward for your organization.