Cost Analysis
Implementation, licensing, and legacy wind-down costs over 10-year horizon
Total 10-Year Costs
$298.5M
Peak Annual Cost
$79.2M
Year of highest spend
Implementation (Yrs 1-3)
$198.5M
Steady-State Annual Run
$14.0M
SAP license + support (2032)
Annual Cost Breakdown
Cost Line Items
| Cost Item | Category | Class. | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
SI Labor (Implementation Partner)
Based on KPMG/Deloitte benchmark for enterprise-scale S/4HANA; 3-year program
|
Implementation | Assumption | $22.0M | $28.0M | $15.0M | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $65.0M |
|
Agilent Internal Labor (Net New)
Program team, change management, testing, and functional leads
|
Implementation | Derived | $4.2M | $5.8M | $3.5M | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $13.5M |
|
SAP License & Cloud Subscription
RISE with SAP S/4HANA Cloud, Private Edition; 3.3% annual escalation
|
Recurring | Source | $2.9M | $11.9M | $12.3M | $12.7M | $13.1M | $13.5M | $14.0M | $14.4M | $14.9M | $15.4M | $125.0M |
|
Legacy ERP Costs (Declining)
Current ERP maintenance declining as regions go live on S/4HANA
|
Legacy Wind-Down | Source | $38.0M | $28.0M | $12.0M | $2.0M | $0 | $0 | $0 | $0 | $0 | $0 | $80.0M |
|
Data Migration & Testing
Data cleansing, migration tooling, UAT, and regression testing
|
Implementation | Assumption | $3.5M | $4.0M | $2.5M | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $10.0M |
|
Third Party Support & Tools
EDI, middleware, training platforms, and cutover support
|
Implementation | Assumption | $2.0M | $1.5M | $1.5M | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $5.0M |
| Total Costs | $72.6M | $79.2M | $46.8M | $14.7M | $13.1M | $13.5M | $14.0M | $14.4M | $14.9M | $15.4M | $298.5M | ||
Cost Composition (10-Year)
Key Cost Drivers
- SAP Licensing: RISE with SAP subscription grows at 3.3% p.a.; largest recurring cost post-implementation
- SI Labor: Front-loaded in years 1-3; represents the largest single investment
- Legacy Wind-Down: Declining cost as regions migrate; fully eliminated by 2030
- Internal Labor: Net new hires for program team; absorbed into BAU post go-live