SaaS ERP: What you need to know!



If you're looking for an enterprise resource planning (ERP) system, you should comprehend two basic deployment types for ERP systems. There's the classic option, in which your on-premises system is hosted on your private servers and controlled by your own IT department.


Then there's the widely used cloud deployment approach, including SaaS ERP and offering various advantages. End-users use SaaS (Software-as-a-Service) ERP over the internet, hosted and maintained by the ERP vendor. It's a subscription service, as the name implies, and you'll be invoiced on a monthly or annual basis.  



Do SaaS ERP and Cloud ERP differ in any significant way? 

While the phrases Cloud ERP and SaaS ERP are sometimes used interchangeably, there is a differentiation to be made in most cases. Any solution housed remotely on an ERP vendor's data center and accessed via a web browser online is called cloud ERP.


Single-tenant or multi-tenant cloud ERP implementations are available. The term "single-tenant" refers to an organization's version of ERP software that runs on dedicated hardware. Multiple firms use ERP software and infrastructure in a multi-tenant arrangement. Still, their customer data is stored and safeguarded independently.  


The multi-tenant approach is used in SaaS ERP, a form of Cloud ERP. This means that if you utilize SaaS ERP, the vendor manages your system, and you use the same software and infrastructure as other companies who have purchased a subscription to the service. SaaS ERP is usually less expensive, enables quick integrations, and takes little effort from your in-house IT team. 



SaaS ERP Vs. On-Premises ERP: Benefits to Consider  

The SaaS model was created to provide a basic set of business benefits above traditional, on-premises ERP solutions. The following are some of the advantages of modern business:


  • Reduce the cost of installation and implementation.

  • Reduce the unpredictability of software and hardware management, patching, and updates.

  • Instead of focusing on technical expenses, consider operating costs.

  • Scale up to meet rising data or transactional demands in real-time.

  • Reduce disruptions while keeping service levels the same.

  • Immediate implementation of new functionality.

  • Reduce costs by requiring less IT support than typical on-premises deployments.

  • You can easily access support, analytics, and collaboration tools with standardized functionality.

  • Using standardized processes, gain greater visibility and insight into profitability and cost across the organization.



SaaS ERP: Bonuses

  • To get up and run, you don't need a lot of money upfront.

  • Has robust out-of-the-box functionality for critical business activities, including inventories, finance, and more.

  • The software is always up to speed, and the provider provides automatic updates.

  • It's simple to scale your business because you won't have to invest in new infrastructure as you expand, and your costs will stay consistent.

  • Seamlessly integrates with other cloud-based applications and has built-in security and disaster recovery strategies to protect your data.


 

SaaS ERP: Drawbacks

  • Customization options are limited.

  • Flexibility is constrained.

  • Vendors are in charge of legality and protection; thus, while security may be better, it may not fulfill the requirements of businesses operating in highly regulated markets. 



Is SaaS ERP Right for Your Business? 

SaaS ERP may not be the best option for your company if you have a unique or niche business model or are in a highly regulated field with stringent security needs. A single-tenant cloud ERP Software might be a better choice. Most other firms, particularly small and medium-sized businesses, will be able to benefit from SaaS ERP's many advantages, including quick adoption, lower startup, ongoing expenses, and no in-house maintenance.


Contact the Connected IT Consulting team if you'd like to learn more about SaaS ERP and whether it's a good fit for your company. We are an ERP consulting business headquartered in Ireland. We help small and mid-sized companies in Ireland and nearby counties change their organizations digitally.


Connect with an ERP consulting pro now!

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