SAAS ERP software
The word SaaS stands for Software as a Service. SaaS ERP refers to a delivery model in which ERP software is available, delivered and is accessible over the internet with a browser.
In this model, an ERP software vendor hosts the ERP software on centralized servers which are housed in remote data centers, allowing customers access the ERP software using an internet connection. This is all possible with the Cloud computing.
The vendor also provides options to use software, hardware, and other resources such as storage through the Internet that is delivered on-demand. SaaS makes data and applications and services available to any internet enables device such as mobile, tablet and PCs.
Customers pay for the software on a subscription basis instead of buying upfront and use the software accordingly. This is the current preferred model of using ERP software by many small and big companies.
Many people often confuse the terms cloud-based ERP software, SaaS ERP software and web-based ERP software.
Web-based ERP software has to be hosted on a reliable web server that is housed in in-house infrastructure or on the web hosting provider’s webserver.
Both Cloud-based ERP software and SaaS ERP software are same as explained above. The term SaaS ERP is a primarily a business term which is referring to a software delivery model rather than a technological one.
The ERP software vendor aims to serve a large number of clients using SaaS model. This model is a recent development and is an alternative to the conventional model.
While the conventional model is associated with high capital expenditure, both direct and indirect investments, long implementation times, upgrade costs for the customer, the SaaS model offers many benefits. A major benefit for the customer by adopting this model is that he is totally isolated from the various technological issues and developments thereby allowing him to concentrate only on his business.
The customer need not worry about hiring and maintaining skilled IT personnel or other issues like security of data, backups, maintenance and other operational requirements.
Delivering an ERP software as a collection of services or APIs has become possible because of technologies have become prevalent that support SaaS.
SaaS applications work based on an architecture known as service-oriented architecture (SOA) which supports communications between individual services.
With the introduction of many front-end technologies such as Angular, HTML 5 and Ajax, web applications have become speedier and more interactive.
SaaS ERP software can be developed using any programming language such as .net, java, php and python to build the web ERP application. The catch is that the particular programming language should include a framework to build the application, continuous integrated environment, tools to deploy and automated testing frameworks.
Customers using SaaS ERP software need to pay only for the transactions they create on a daily, monthly or periodic basis. Customers are attracted to this offer as their funds deployment is in a phased manner resulting in lesser up-front funds requirement.
In this model, the customer need not spend any time for purchase of hardware and software as it is already installed at the Vendor's data centers. The only hardware customer has to purchase are the workstations and internet connectivity.
The ERP vendor conducts a system study of the client company and enable the ERP software hosted on a remote server to record the customers business processes. How this is done depends on the strategies adopted by the ERP vendor.
Customers using SAAS ERP software need not buy expensive back-end servers, middleware, networks as the vendor provides them on a sharing basis. As technologies progress and more innovation occurs, customers need not invest on the newer hardware at the server side.
Customers can access an SAAS ERP application from anywhere in the world as it is a web based model. All they would need is a computer and an internet connection. Wider accessibility covers even the vendors and suppliers of a particular company. Given the required permissions, vendors and suppliers can also access certain options and communicate with the company.
For the vendor SaaS is simpler to deploy and investment in hardware is not required. However the vendor will have to pay for infrastructure to host the application, processing of software instances, data storage and other services such as Content delivery network and communication services such as Queues, Event hubs to the cloud provider. Google Cloud, Amazon EC2, Microsoft Azure and IBM are the some of the popular cloud platforms in the market. If you want to learn about using Azure, refer to this neatly compiled 100 Questions and Answers.
SaaS ERP software vendor upgrade the software continuously and updates the patches in his hosting environment. Customers get the upgraded software instantly. However you will not have the flexibility to customize it to your specific needs.
As the traditional software are installed on in-house infrastructure, this provides unmatched flexibility as programs of the software and data is accessible and available for changes. At the same time you can choose not to change anything, if it suits you.
Many companies find it difficult to modify their business processes to suit the design the SaaS based ERP software. This is especially so in case of large companies with established business processes. Small and startup companies can adapt SaaS based ERP software easily as their business processes even they are well defined can be modified without effecting the working of the organization.
As SaaS is entirely dependent on the internet, availability of the internet, speed of data transfer and cost of access become very important for success of the ERP implementation. Many companies prefer to use Hybrid model where some services are hosted on the in-house infrastructure and some of the services are hosted as SaaS. This model is superior in cases where internet access is slow and unreliable.
Cost has to be estimated and ROI has to be calculated based on the number of years you would want to use the software, and the technological features you would want to use in the foreseeable future. For instance, if you do not want to use a mobile based entry option then all devices access many not be necessary for you. Based on all these factors you have to arrive at a comparative cost analysis between SaaS and in-house hosted ERP.
The subscription based model and in-house model has to be evaluated in the backdrop of the factors mentioned above.
Ownership of something and physical location of the software in-house gives a better legal position when a situation arises in which the vendor provides an inadequate service. In SaaS based model, if the vendor provides inadequate service the company can quickly opt out of the subscription but is faced with the prospect of having no software to use. However, if the software is in-house the company can take the vendor to the court while using the useable part of the software as long as possible.
Most ERP installations takes long periods of time. This is because of the infrastructure set up time including OS software, hardware and the ERP software itself. However, in SaaS model the availability on individual laptops and mobile devices with high security passwords becomes easier to go live.
User companies generally implement ERP systems in stages. The stages can be department wise, module wise or location wise. In SaaS based model, this phased implementations can be done in an accelerated mode or otherwise has the situation demands.
The entire local ERP implementation team can be very small thus freeing up the remaining IT team for other purposes such as documentation etc. IT professionals with skills such as security, performance, high availability and disaster recovery are expensive to hire and in SaaS based model all these services are managed by the SaaS ERP vendor.
Service Level Agreement (SLA) provided by ERP vendors guarantee that the software available 24/7 from anywhere and backup available if any failure occurs. This SaaS based model is highly valuable for companies who operate from multiple locations. When company business grows, this model allows software to be scaled up easily.
The wide acceptance of pay-as-you-use or pay-as-you-go model as resulted in vendors having a steady income and larger and wider number of customer base. This has made vendors manage their finances with a plan and operate successfully. This financial stability of the vendors is also beneficial to customers as vendors going out of business is not a happy prospect.
Scalability should not be understood in the narrow sense of adding more users. For instance a cloud based SaaS ERP software has more granularity which means only a few types of expense vouchers can be used by the customers but multiple instances of the same can be used and created at the same time depending on the work load. This feature is in great demand when the user experiences higher usage requirement during particular time of the day or particular periods of the year.
Many a times small sized companies cannot use sophisticated software because such software will be very expensive. In SaaS based model, vendors can modify the software while retaining core advanced features and deliver to customers.
For the users shifting to different platforms becomes easier as data only has to be migrated and everything is taken care by the vendor.
The above benefits are the main reasons to adopt SaaS-based ERP software by companies across many verticals.
The below are some of the SAAS ERP solutions in the market.
Aplicor
This ERP software is developed using the .Net/ SQL/ SOA technology
Intacct
PHP/Oracle technology
NetSuite
Java/Oracle technology
SAP
Netweaver technology
Workday
Java/Oracle technology
All SaaS ERP software have only one deployment model, in which the software is hosted in centralized servers and is delivered to the user over the internet.
However, for various reasons the entire ERP software is not delivered using the above model entirely.
However, there is no specific formula which can be provided for choosing the best combination of delivery models. Herein I will explain the various factors to be considered for choosing the best model for your requirement.
#1. Servers
#2. Payment
#3. Customization
#4. Support
Servers are important for on-premise ERP and SaaS ERP model. In the SaaS ERP model, the servers are located at the vendor's choice whereas on on-premise model the servers are located in the premises of the user. There are many more choices but one common choice is the hosting space is rented but the user owns the software and deploys it on a rented server.
To choose the right model you should have a clear idea of your requirement. Let us say yours is a huge organization and you are required lot of customized ERP software, and spread over a wide geographical area then you would prefer the third model wherein your customized ERP is developed in-house or by a third party vendor and deployed over the rented cloud servers. Then you need to choose the IaaS from the cloud vendor.
Suppose your business processes match closely with the off the shelf ERP software, then you can buy the software and either deploy it on in-house server or on a rented server. However, the vendors of such software have to SaaS enable their offering.
Suppose yours is small firm and you have limited budget for your ERP,the best option for you would be to modify your business processes and match it to the available software in the market and go with the vendors offering.
The payment factor is very simple and straight forward. If you have the budget go for the software which best fits to your business processes and your budget is limited, go for the best software which fits for your budget. In the SaaS model, you often do not pay any upfront costs but you pay on monthly or yearly basis. If you choose on-premise model, you generally buy the software as license to use it and pay for the maintenanace.
Bottom line is it is your budget which will determine the payment model you choose.
Generally, vendors who offer the SaaS deployment model try to narrow down their offering to specific verticals so that customization is possible for companies in that vertical. An added benefit for users is they get to practice standard business processes which are developed over a period of time and feedback from users.
However, successful companies will be hesitant to expose their core competencies such as standard operating procedures. Such companies will not be willing to use software from such vendors and instead go for customized software which are hoisted on rented cloud servers.
In today's world, integration is very important. Integration refers to one ERP module being able to communicate with another external ERP or non ERP systems and either exchange data. You can evaluate the ERP offering baserd on the number od aPI it provides to communicate with other software.
A common API is communicating with payment system. An invoice is able to pick up data from a payment system of the amounts paid and categorize the invoice accordingly is provided by many ERP vendors.
In a SaaS model, the support fees is included in the subscription fees which actually means very less support fees you will end up paying. This is because by delivering the software over the internet, vendors aim to get a large number of users and when the support charges are apportioned the fees per user is very less. Further vendors incur very less costs for deploying the upgraded version to the cloud.
Also due to the granular nature of the todays ERP world only the specific micro module can be worked on and deployed. In an on-premise model, the support fees can be exorbitant as it might require deployment and verification at each installation which results in higher costs.
Bug fixes which are the responsibility of the vendor are automatically corrected and updated seamlessly without user ever knowing about it.
Remember, at a first glance Cloud ERP looks an attractive preposition and has its own plus points.
Instant implementation, no upfront costs, standadiuazed business processes are all benefits of SaaS ERP.
However, it has its own hidden costs.
Vendors recognize that each customer has its own uniqueness and customization has to be done to automate this uniqueness. Vendors design their offerings in such away that the uniqueness can be maintained with an additional charge and also upgraded whenever required.
Many a times customers require their ERP software to communicate with many other systems which can be legacy systems or smaller customized software designed for specific purposes or general business applications software such as MS office or Google docs. This integration and customization is done at an extra cost and maintained by a software vendor.
When the SaaS ERP software has a maintenance issue customers have no other option but to wait it out. On the other hand, if it on-premise model, customers can make efforts for a quick resolution of the issue. However, the superior design and the vendors control over their infrastructure generally ensure that the downtime is minimal.
Further, resolution of an issue requires specialized skills and SaaS vendors will be more equipped to handle it.
As SaaS ERP is used over the internet online training is much easier with various options such a text based manuals and videos and mastery based quizzes.
Vendors will be able to provide training tools at minimal costs as all of them can be accessed over the internet.
As SaaS ERP software are complex and cover wide business processes, a consultant is required who knows and understands the SaaS offering inside out. Such a consultant will be able to fine tune the SaaS software to a specifc customer needs.
Vendors do well if they can have in-house consultant who will customize the software for small sized companies as this will increase the product acceptance.
Small sized companies have to lay down a very clear aims and objectives list of the proposed ERP implementation so that they know clearly what to expect. Without this reference the implementation may fail or have a troublesome implementation phase.
Incremental upgrades is a recommended model as this will enable the company to understand and experience what to expect from the ERP software and how to alter the operations accordingly.
The biggest positive for small sized business from a SaaS ERP is that it can boost the productivity of the business and put it on a rapid growth path.
Mapping of the aims and objectives to the vendors offering is a team work and a consultant role can be very vital in this process.
Make sure that you short list a certain number of offerings in your vertical and then initiate the comparative analysis and consultation process.
Because of the centralized nature of the SaaS ERP vendors are able to offer the following security benefits.
Customers can evaluate the security features of a SaaS offering by studying the contract and looking for points which detail the security aspects. Vendors should bewilling to undertake return agreements for the security they offer to the customer. The contract sheet should include aspects such as data security and clearly mention how they offer data security and encryption capabilities of sensitive data.
The only way to compare application security of ERP SaaS is to consider the on-premise application security. On-premise security is higher when to consider the very nature of data transmission. However, breaches can occur in on-premise solutions as internet usage is imperative. Natural disasters such as earthquake or fire will consume the IT infrastructure and the company together which will rise no questions. However, in a SaaS based model the company expects the SaaS vendor to ensure that the application is available even when there is a disaster.
As regards to physical security cloud installations are well secured as compared to onsite.
In a typical hybrid SaaS ERP a part of the ERP system is installed on-premise and the remaining components are available on the cloud. That part of the business processes which the business thinks need not be put on the cloud are retained in the on-premise.
These business processes typically are critical in nature and have highly sensitive data which cannot be revealed and put into a vendors hands in total. The business processes which reside on the cloud are typically those which are less sensitive and widely accessed.
In this model, an ERP software vendor hosts the ERP software on centralized servers which are housed in remote data centers, allowing customers access the ERP software using an internet connection. This is all possible with the Cloud computing.
The vendor also provides options to use software, hardware, and other resources such as storage through the Internet that is delivered on-demand. SaaS makes data and applications and services available to any internet enables device such as mobile, tablet and PCs.
Customers pay for the software on a subscription basis instead of buying upfront and use the software accordingly. This is the current preferred model of using ERP software by many small and big companies.
Many people often confuse the terms cloud-based ERP software, SaaS ERP software and web-based ERP software.
Web-based ERP software has to be hosted on a reliable web server that is housed in in-house infrastructure or on the web hosting provider’s webserver.
Both Cloud-based ERP software and SaaS ERP software are same as explained above. The term SaaS ERP is a primarily a business term which is referring to a software delivery model rather than a technological one.
The ERP software vendor aims to serve a large number of clients using SaaS model. This model is a recent development and is an alternative to the conventional model.
While the conventional model is associated with high capital expenditure, both direct and indirect investments, long implementation times, upgrade costs for the customer, the SaaS model offers many benefits. A major benefit for the customer by adopting this model is that he is totally isolated from the various technological issues and developments thereby allowing him to concentrate only on his business.
The customer need not worry about hiring and maintaining skilled IT personnel or other issues like security of data, backups, maintenance and other operational requirements.
Delivering an ERP software as a collection of services or APIs has become possible because of technologies have become prevalent that support SaaS.
SaaS applications work based on an architecture known as service-oriented architecture (SOA) which supports communications between individual services.
With the introduction of many front-end technologies such as Angular, HTML 5 and Ajax, web applications have become speedier and more interactive.
SaaS ERP software can be developed using any programming language such as .net, java, php and python to build the web ERP application. The catch is that the particular programming language should include a framework to build the application, continuous integrated environment, tools to deploy and automated testing frameworks.
15 REASONS TO CONSIDER CLOUD ERP
#1. Pay for what is used
Customers using SaaS ERP software need to pay only for the transactions they create on a daily, monthly or periodic basis. Customers are attracted to this offer as their funds deployment is in a phased manner resulting in lesser up-front funds requirement.
#2. Speedier implementation
In this model, the customer need not spend any time for purchase of hardware and software as it is already installed at the Vendor's data centers. The only hardware customer has to purchase are the workstations and internet connectivity.
The ERP vendor conducts a system study of the client company and enable the ERP software hosted on a remote server to record the customers business processes. How this is done depends on the strategies adopted by the ERP vendor.
#3. Lesser Hardware and software infrastructure investments
Customers using SAAS ERP software need not buy expensive back-end servers, middleware, networks as the vendor provides them on a sharing basis. As technologies progress and more innovation occurs, customers need not invest on the newer hardware at the server side.
#4. Increased accessibility
Customers can access an SAAS ERP application from anywhere in the world as it is a web based model. All they would need is a computer and an internet connection. Wider accessibility covers even the vendors and suppliers of a particular company. Given the required permissions, vendors and suppliers can also access certain options and communicate with the company.
#5. Simplicity
For the vendor SaaS is simpler to deploy and investment in hardware is not required. However the vendor will have to pay for infrastructure to host the application, processing of software instances, data storage and other services such as Content delivery network and communication services such as Queues, Event hubs to the cloud provider. Google Cloud, Amazon EC2, Microsoft Azure and IBM are the some of the popular cloud platforms in the market. If you want to learn about using Azure, refer to this neatly compiled 100 Questions and Answers.
#6. Flexibility
SaaS ERP software vendor upgrade the software continuously and updates the patches in his hosting environment. Customers get the upgraded software instantly. However you will not have the flexibility to customize it to your specific needs.
As the traditional software are installed on in-house infrastructure, this provides unmatched flexibility as programs of the software and data is accessible and available for changes. At the same time you can choose not to change anything, if it suits you.
#7. Control
Many companies find it difficult to modify their business processes to suit the design the SaaS based ERP software. This is especially so in case of large companies with established business processes. Small and startup companies can adapt SaaS based ERP software easily as their business processes even they are well defined can be modified without effecting the working of the organization.
8. Accessibility
As SaaS is entirely dependent on the internet, availability of the internet, speed of data transfer and cost of access become very important for success of the ERP implementation. Many companies prefer to use Hybrid model where some services are hosted on the in-house infrastructure and some of the services are hosted as SaaS. This model is superior in cases where internet access is slow and unreliable.
#9. Cost and ownership
Cost has to be estimated and ROI has to be calculated based on the number of years you would want to use the software, and the technological features you would want to use in the foreseeable future. For instance, if you do not want to use a mobile based entry option then all devices access many not be necessary for you. Based on all these factors you have to arrive at a comparative cost analysis between SaaS and in-house hosted ERP.
The subscription based model and in-house model has to be evaluated in the backdrop of the factors mentioned above.
Ownership of something and physical location of the software in-house gives a better legal position when a situation arises in which the vendor provides an inadequate service. In SaaS based model, if the vendor provides inadequate service the company can quickly opt out of the subscription but is faced with the prospect of having no software to use. However, if the software is in-house the company can take the vendor to the court while using the useable part of the software as long as possible.
#10. Implementation
Most ERP installations takes long periods of time. This is because of the infrastructure set up time including OS software, hardware and the ERP software itself. However, in SaaS model the availability on individual laptops and mobile devices with high security passwords becomes easier to go live.
#11. Stepping up of software implementations
User companies generally implement ERP systems in stages. The stages can be department wise, module wise or location wise. In SaaS based model, this phased implementations can be done in an accelerated mode or otherwise has the situation demands.
#12. Outsourced skills and expertise
The entire local ERP implementation team can be very small thus freeing up the remaining IT team for other purposes such as documentation etc. IT professionals with skills such as security, performance, high availability and disaster recovery are expensive to hire and in SaaS based model all these services are managed by the SaaS ERP vendor.
#13. Hosted software delivery
Service Level Agreement (SLA) provided by ERP vendors guarantee that the software available 24/7 from anywhere and backup available if any failure occurs. This SaaS based model is highly valuable for companies who operate from multiple locations. When company business grows, this model allows software to be scaled up easily.
#14. Subscription pricing model
The wide acceptance of pay-as-you-use or pay-as-you-go model as resulted in vendors having a steady income and larger and wider number of customer base. This has made vendors manage their finances with a plan and operate successfully. This financial stability of the vendors is also beneficial to customers as vendors going out of business is not a happy prospect.
#15. Greater scalability
Scalability should not be understood in the narrow sense of adding more users. For instance a cloud based SaaS ERP software has more granularity which means only a few types of expense vouchers can be used by the customers but multiple instances of the same can be used and created at the same time depending on the work load. This feature is in great demand when the user experiences higher usage requirement during particular time of the day or particular periods of the year.
Other benefits
Many a times small sized companies cannot use sophisticated software because such software will be very expensive. In SaaS based model, vendors can modify the software while retaining core advanced features and deliver to customers.
For the users shifting to different platforms becomes easier as data only has to be migrated and everything is taken care by the vendor.
The above benefits are the main reasons to adopt SaaS-based ERP software by companies across many verticals.
The below are some of the SAAS ERP solutions in the market.
Aplicor
This ERP software is developed using the .Net/ SQL/ SOA technology
Intacct
PHP/Oracle technology
NetSuite
Java/Oracle technology
SAP
Netweaver technology
Workday
Java/Oracle technology
SaaS ERP software deployment models
All SaaS ERP software have only one deployment model, in which the software is hosted in centralized servers and is delivered to the user over the internet.
However, for various reasons the entire ERP software is not delivered using the above model entirely.
However, there is no specific formula which can be provided for choosing the best combination of delivery models. Herein I will explain the various factors to be considered for choosing the best model for your requirement.
#1. Servers
#2. Payment
#3. Customization
#4. Support
Servers
Servers are important for on-premise ERP and SaaS ERP model. In the SaaS ERP model, the servers are located at the vendor's choice whereas on on-premise model the servers are located in the premises of the user. There are many more choices but one common choice is the hosting space is rented but the user owns the software and deploys it on a rented server.
To choose the right model you should have a clear idea of your requirement. Let us say yours is a huge organization and you are required lot of customized ERP software, and spread over a wide geographical area then you would prefer the third model wherein your customized ERP is developed in-house or by a third party vendor and deployed over the rented cloud servers. Then you need to choose the IaaS from the cloud vendor.
Suppose your business processes match closely with the off the shelf ERP software, then you can buy the software and either deploy it on in-house server or on a rented server. However, the vendors of such software have to SaaS enable their offering.
Suppose yours is small firm and you have limited budget for your ERP,the best option for you would be to modify your business processes and match it to the available software in the market and go with the vendors offering.
Payment
The payment factor is very simple and straight forward. If you have the budget go for the software which best fits to your business processes and your budget is limited, go for the best software which fits for your budget. In the SaaS model, you often do not pay any upfront costs but you pay on monthly or yearly basis. If you choose on-premise model, you generally buy the software as license to use it and pay for the maintenanace.
Bottom line is it is your budget which will determine the payment model you choose.
Customization
Generally, vendors who offer the SaaS deployment model try to narrow down their offering to specific verticals so that customization is possible for companies in that vertical. An added benefit for users is they get to practice standard business processes which are developed over a period of time and feedback from users.
However, successful companies will be hesitant to expose their core competencies such as standard operating procedures. Such companies will not be willing to use software from such vendors and instead go for customized software which are hoisted on rented cloud servers.
Integration
In today's world, integration is very important. Integration refers to one ERP module being able to communicate with another external ERP or non ERP systems and either exchange data. You can evaluate the ERP offering baserd on the number od aPI it provides to communicate with other software.
A common API is communicating with payment system. An invoice is able to pick up data from a payment system of the amounts paid and categorize the invoice accordingly is provided by many ERP vendors.
Support
In a SaaS model, the support fees is included in the subscription fees which actually means very less support fees you will end up paying. This is because by delivering the software over the internet, vendors aim to get a large number of users and when the support charges are apportioned the fees per user is very less. Further vendors incur very less costs for deploying the upgraded version to the cloud.
Also due to the granular nature of the todays ERP world only the specific micro module can be worked on and deployed. In an on-premise model, the support fees can be exorbitant as it might require deployment and verification at each installation which results in higher costs.
Bug fixes which are the responsibility of the vendor are automatically corrected and updated seamlessly without user ever knowing about it.
Hidden Costs of Cloud ERP
Remember, at a first glance Cloud ERP looks an attractive preposition and has its own plus points.
Instant implementation, no upfront costs, standadiuazed business processes are all benefits of SaaS ERP.
However, it has its own hidden costs.
Customization
Vendors recognize that each customer has its own uniqueness and customization has to be done to automate this uniqueness. Vendors design their offerings in such away that the uniqueness can be maintained with an additional charge and also upgraded whenever required.
Many a times customers require their ERP software to communicate with many other systems which can be legacy systems or smaller customized software designed for specific purposes or general business applications software such as MS office or Google docs. This integration and customization is done at an extra cost and maintained by a software vendor.
Downtime and Maintenance
When the SaaS ERP software has a maintenance issue customers have no other option but to wait it out. On the other hand, if it on-premise model, customers can make efforts for a quick resolution of the issue. However, the superior design and the vendors control over their infrastructure generally ensure that the downtime is minimal.
Further, resolution of an issue requires specialized skills and SaaS vendors will be more equipped to handle it.
Training
As SaaS ERP is used over the internet online training is much easier with various options such a text based manuals and videos and mastery based quizzes.
Vendors will be able to provide training tools at minimal costs as all of them can be accessed over the internet.
Selecting Cloud ERP FOR Small Businesses
- Consultant requirement
- Aim and objectives
- Incremental upgrades
As SaaS ERP software are complex and cover wide business processes, a consultant is required who knows and understands the SaaS offering inside out. Such a consultant will be able to fine tune the SaaS software to a specifc customer needs.
Vendors do well if they can have in-house consultant who will customize the software for small sized companies as this will increase the product acceptance.
Small sized companies have to lay down a very clear aims and objectives list of the proposed ERP implementation so that they know clearly what to expect. Without this reference the implementation may fail or have a troublesome implementation phase.
Incremental upgrades is a recommended model as this will enable the company to understand and experience what to expect from the ERP software and how to alter the operations accordingly.
The biggest positive for small sized business from a SaaS ERP is that it can boost the productivity of the business and put it on a rapid growth path.
Mapping of the aims and objectives to the vendors offering is a team work and a consultant role can be very vital in this process.
Make sure that you short list a certain number of offerings in your vertical and then initiate the comparative analysis and consultation process.
How Secure Is Cloud ERP?
Because of the centralized nature of the SaaS ERP vendors are able to offer the following security benefits.
- Round the clock, 365 days 24/7 supervision
- Latest firewalls and security software is used
- Updated hardware and software
- Spending on security is much more as compared to onsite installations
Customers can evaluate the security features of a SaaS offering by studying the contract and looking for points which detail the security aspects. Vendors should bewilling to undertake return agreements for the security they offer to the customer. The contract sheet should include aspects such as data security and clearly mention how they offer data security and encryption capabilities of sensitive data.
The only way to compare application security of ERP SaaS is to consider the on-premise application security. On-premise security is higher when to consider the very nature of data transmission. However, breaches can occur in on-premise solutions as internet usage is imperative. Natural disasters such as earthquake or fire will consume the IT infrastructure and the company together which will rise no questions. However, in a SaaS based model the company expects the SaaS vendor to ensure that the application is available even when there is a disaster.
As regards to physical security cloud installations are well secured as compared to onsite.
Hybrid SaaS ERP
In a typical hybrid SaaS ERP a part of the ERP system is installed on-premise and the remaining components are available on the cloud. That part of the business processes which the business thinks need not be put on the cloud are retained in the on-premise.
These business processes typically are critical in nature and have highly sensitive data which cannot be revealed and put into a vendors hands in total. The business processes which reside on the cloud are typically those which are less sensitive and widely accessed.
ERP Articles
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- ERP Software Development
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- Technologies required for ERP
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- ERP software features
- SAAS ERP software
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