ERP Software licensing can be expensive for a lot of businesses. Small businesses and even corporation have the opportunity to rent or license the enterprise resource planning software package for a protracted period of time. The ERP software is hosted on a third party application service provider or on the ERP developer's web server.
Not every organization can has advantages in using software as service software model. The benefit from using this type of software model is the reduced time to implement. While there are many advantages to the software-as-a-service software model, this type of ERP system is not ideal for every organization. Not all software vendors have a policy of SaaS software model, and limit the customization of this software. This can be prohibitive for organizations that need highly customized enterprise resource planning solution with very low cost.
Companies that have personnel with experience with traditional and SaaS ERP packages can help the clients determine and evaluate which method is best for the need of their organizations. The client can benefit from complete service throughout the process of implementation of this solution.
ERP Software-as-a-Service (SaaS) has evident benefits for every organization. The total cost of ownership of Saas ERP is lower over a period of five years forecast according to a lot of reputable economical analysts. This is not applicable to all business scenario because every organization has its particular needs.
The risk of implementation failure and the probability of project delays can be eliminated in contrast with traditional systems where there was a high need of computer hardware, software components such as operating systems, management tools, relational databases, security appliances etc.
Without this hassle the implementation of these systems can be reduced. No more technical issues related to the configuration and installation of data center appliances, hardware servers and platform software.
The ERP hosting companies have the IT personnel that has the skills to perform optimization, secure the information, recover the data in case of failure thus giving continuity to any business. The hardware from their data centers containe a lot of redundancy equipment that can't be matched by client companies.
Subscription pricing lets every business to work on a tight budget because the payments are fixed and scheduled and there is no need for other overruns cos associated with traditional system implementations.
ERP browser based system access is very important and valuable for organizations that run offices accross the country and have staff accessing the business system from multiple locations. This anytime and anywhere access and back up SLA (Service Level Agreement) is a guarantee for companies that they will have the systems running without problems. In case something happens there are financial penalties for that.
Cost control is one of the major problems of all businesses from large corporation to small businesses. That's why ERP Software-as-a-Service (SaaS) is preferred by more and more companies each day. These companies don't have to spend money on training personnel to maintain and troubleshoot ERP and they can benefit from the technical service and professionalism of experts from ERP vendors.