Wednesday, January 23, 2008

Why Choose Software-as-a-Service ERP Software?

One of the key advantages of choosing Software-as-a-Service (SaaS) is that companies can save considerable amounts of money by not having to provide the on-premise IT support infrastructure. For a monthly fee companies can get the software they need much faster than outright purchasing it. Many of these trends are evident in the continued growth of companies choosing SaaS ERP systems. There is a much less upfront expense and more flexibility in licensing terms, as far as the customers not buying more licenses than they actually need, when choosing a SaaS ERP system that's right for them.

The ease of getting the software you need now at the price you can afford is one of the many advantages of choosing your SaaS. However, one thing to keep in mind when considering if a SaaS ERP system is right for you is that the ongoing monthly expense never ends and you don't ever own the software. To many companies, never actually owning the software isn't a problem because they are getting what they need on a pay-as-you-go-basis without being locked into a long-term agreement.

Some of the benefits of SaaS

  • Easy use and set-up

  • Predictable monthly ongoing expense

  • Mobility in it web-based applications

  • The vendor manages the servers, backs up the data and updates the application for customers

  • Less upfront costs and many times long-term as well. Thin client systems can drastically reduce the TCO (Total Cost of Ownership).


Although, SaaS might not be the solution for every business dilemma, when properly chosen it can allow for companies to save time, money and grief. When considering a SaaS ERP system do your homework to make sure that the company that you choose can provide your company with what it needs for optimum usability. Some early proven leaders in providing SaaS are Tuppas Software and Salesforce.


Copyright 2008
Written by Hal Hamer

1 comment:

SC said...

SAAS ERPs are really an improvement. Businesses of any size should benefit from theses new services in my opinion. The problem is that most clients will be reluctant to have their data "shared" on servers with other businesses, even if the data is not accessible to others. SAAS erps will have to solve this problem, but in the end, I am confident that theses systems will be highly popular and become the norm