Enterprise Resource Planning systems stand for great features that help businesses manage their day-to-day operations more effectively thanks to process automation. However, it sometimes might be pretty confusing to select the right type of this software as the current market offers multiple options. Whether to use cloud ERP, on-premises, or software-as-a-service (SaaS) remains popular. Each ERP software has its pros and cons and fits different businesses. This article will introduce you to the SaaS ERP vs. cloud ERP differences.
What is cloud ERP?
ERP appears as business software that is designed to manage enterprise data. While on-premises ERP takes place on servers of a company and its IT staff is responsible for managing and maintaining a system, cloud-based solutions are implemented and managed at the expense of remote servers.
A company pays a third-party vendor for necessary resources, system deployment, maintenance, and hardware updating. Most cloud ERP options are highly customizable, which means an enterprise can add or remove resources if needed. This makes cloud ERP more scalable and flexible compared to on-premises systems. Besides, cloud-based ERP solutions might be both private and public.
SaaS ERP at the glance
SaaS ERP is typically distributed over the Internet and refers to cloud-based ERP software. Companies can invest in this system on a monthly or quarterly basis. This type of Enterprise Resource Planning takes place on the servers that own a vendor. It is worth mentioning that a multi-tenant SaaS architecture is commonly associated with this software which means a provider keeps every tenant’s data separate. At the same time, they can share databases and any supporting infrastructure. SaaS ERP features better security than other solutions, offers lower IT costs, and can protect systems from cyberattacks more efficiently.
Cloud ERP vs SaaS ERP
Both software solutions, cloud ERP vs SaaS are effective, and the ERP you select depends on the requirements of your affair. If your goal is to have more control over data, backups, recovery systems, and security and have more customizable options and better upgrades, then cloud ERP is your best bet. Unfortunately, SaaS Enterprise Resource Planning can’t offer you a limited list of customizable solutions.
When it comes to SaaS vs cloud ERP, each solution suits different business cases. Cloud-based ERP is an excellent choice for companies that promote unique business models which require more control for the customizable solutions. Businesses can take advantage of this kind of software thanks to reduced IT costs, better mobility, and more straightforward communication with business partners.
On the other hand, software as a service ERP is most suitable for an organization that doesn’t seek customization as a third-party provider manages the entire system. Furthermore, features of this software solution are created to fulfill the needs of the majority of corporations in the market.