The Value Proposition of SaaS ERP

By December 19, 2013Acumatica

Cloud Computing Acumatica The demand for Software as a Service (SaaS) Enterprise Resource Planning (ERP) software is growing.  Companies are seeing the big picture benefits of a hosted (cloud) solution to run their business solutions software.  More and more businesses are trusting their data to be accessed virtually anywhere, anytime – which is one of the major benefits of opting for a SaaS solution over the traditional on-premise model.

There are several benefits to SaaS ERP solutions.

Data on demand from any location is one of the biggest benefits of selecting a SaaS ERP model.  As the business world becomes a more global marketplace, so does the need for executives and employees to access company data from remote locations.  With a SaaS solution, you can access your data anywhere you can get internet access.  That is the beauty of the cloud, your data, anytime, anywhere.   If data security is an issue, a company should just check the publisher’s security credentials.  Most reputable ERP publishers offering SaaS adhere to the highest security levels including 128 bit encryption standards, strict password policies, role based security levels and location based IP address restrictions.

Another benefit of cloud computing is the reduction in IT infrastructure.  With your data stored offsite, you no longer need additional servers and data centers.  No need for expensive temperature controlled rooms to house the hardware.  Cloud computing also reduces the need for additional IT resources to maintain and administer your hardware.  SaaS solutions typically include backup and disaster recovery as well, so this not only eliminates the additional cost of BDR plans, but also eliminates the added stress of worrying about what you would do if you lost all your data.

Yet another advantage of SaaS model applications is rapid time to deployment.  SaaS applications can take substantially less time to implement depending on the individual business requirements.  Less time to deploy equals less external resources which equals less expenses to the company.  Cloud ERP is generally less expensive upfront as well and keeps more cash in your pocket, which reduces the overall Total Cost of Ownership (TCO).  Because the application is hosted, all software updates are automatically pushed to all users at the same time, again reducing the TCO and keeping you current on all software releases without the need for an additional maintenance and support plan from the publisher.

However, SaaS ERP solutions are not for everyone.

A company will need to see the big picture to gain all the true benefits.  If a company tends to only look at the bottom line hard dollar figures, they will not see the value proposition from a cloud ERP.  They will only see a more expensive solution in the long run, and they will not factor in the intangible benefits – such as:

  • Access to data anywhere you can get an internet connection
  • Reduced IT infrastructure and resources
  • Imbedded backup and disaster recovery
  • Rapid deployment
  • The ability to always be on the current version of the software

If all of these benefits are factored into the ERP equation, a company can gain all of the true value of a SaaS ERP solution.

Note: two examples of SaaS ERP Solutions are Acumatica and NetSuite.

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If you have questions about SaaS or Cloud ERP solutions, please contact our team online.

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