Your Guide to Software Selection

What’s the Difference between Traditional vs. SaaS ERP?

 Business owners have long understood the value of enterprise resource planning (ERP) software in terms of how it can handle data that’s vitally important to company activities. Nowadays, companies can optimize their ERP software usage by opting for SaaS ERP software. This software offers all of the benefits of traditional ERP software while being accessible via the cloud.

When companies use SaaS ERP software, they don’t have to invest in the hardware that’s needed to run the software in on-premises computers. Instead, they can access software that’s run on the servers of SaaS providers. This cuts down on both hardware and IT costs.

The following are a few of the key differences of cloud ERP systems that make it advantageous for many companies:

  • A more simple setup – SaaS ERP systems can be setup to be accessed by a company’s office facilities in only minutes. This type of software is accessed via the Internet, so any computer that’s connected to the Internet can access it without needing to have any special software installed. The greater technical simplicity of using SaaS for business software solutions means that companies don’t have to spend as much money on IT staff and maintenance.
  • Flexible options – Providers of SaaS solutions typically are able to offer companies many more options than those who sell an entire packaged ERP software solution. With SaaS software, you can do your own configuring, picking and choosing the features that you need as you go.
  • Greater control – If your company has been around a while, then you’ve already got well-defined business procedures set up. This means you need an ERP software solution that puts the control in your hands so you can work software capabilities and functionality around your unique needs.
  • Lower costs – If you compare the costs, you’ll probably find that SaaS is less expensive than traditional ERP software. What is particularly less expense with SaaS solutions is the initial setup costs. Many startup companies wouldn’t be able to get off the ground if they had to fund major purchases on expensive software packages. SaaS offers a pay-as-you-go model that makes it possible to get cutting-edge software with a small initial investment.
  • Ease of access – Because SaaS options allow software to be accessed on any devise with an Internet connection, it drastically increases accessibility. Opt for cloud-based ERP software needs and you won’t need to be at the office to access company documents and files. You can simply pull up a browser wherever you are and get to work. Do away with the complications of running your own company network on servers that you need to service and maintain with SaaS solutions.

The SaaS revolution has created a fundamental shift in the business world that’s perfect for companies wishing to home in on their central business task instead of putting effort into superfluous IT demands. By now, there are many different ERP software options out there that can be accessed along the SaaS model. Though there are some tradeoffs between traditional and SaaS business solutions software, the advantages of the web-based ERP software outweigh any benefits of traditional software for companies operating in a wide variety of industries.

If you’re evaluating an ERP solution, consider starting with an ERP requirements template to manage the selection process. If you want to know the top ERP solutions on the market, get our ERP analyst report.




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