ERP  TCO Total cost of ownership   ERP system cost should be viewed in the context of lifecycle cost or total cost of ownership (TCO). Consider the up-front cost for hardware, software and implementation plus operations, support and maintenance cost for a reasonable span of time like (at least 5 to 7 years). Most ERP system providers charge an annual maintenance fee in the range of 18-20% of the purchase price—and it is well worth the cost. A maintenance subscription will insure that you have continuous (phone and web-based) support, “bug-fix” services, as well as system updates and enhancements as the supplier continues to invest in the product and take advantage of new functions and technologies.