$1000/person is reasonable? You could literally have a secretary/admin spend _multiple days per year per person_ managing things for that much. The software administrative complex is completely mad.
Payroll, inventory ... what else? Student grades maybe. Contact info for studemts and employees. Essentially keeping a simple db schema.
Why exactly are Universities all-inclusive day cares for young adults covering every life need under a single administrative umbrella? It's like a capitalist commune. Landlord, hospital network, a few professional sports teams, dozens of amateur sports teams, several restaurant chains, life coaches, a police force, and on and on and on.
They do everything, the things they do they overcomplicate, and they overreach control of every tiny thing all under one umbrella. Of course it's absurdly expensive, but there's no reason it needs to be besides there's no incentive for anybody to cut back on anything ever.