Business entities around the globe are dramatically moving toward the cloud. Software-as-a-Service (SaaS) ERP systems have become an inseparable part of them, assisting in cost reduction overall. Software-based firms, especially those running on shoestring budgets, have discovered a new way to make use of their limited resources and still make profit as high as that achieved by the big players. The question is, WHY?
Must Read – The Benefits of Two-tier ERP System
Why you should ditch On-premise software and embrace SaaS:
Large organizations are still thriving on on-premise software solutions to accomplish their Enterprise Resource Planning (ERP) tasks. True, SaaS is relatively young, and On-prem is heavily armoured with functionality. But, the fact is that a data centre of your own does not make you more secure. And further, ERP services work better in a hosted atmosphere. Let’s look at it in this way – ‘If it’s manual, it’s cumbersome and resource-demanding. If it’s automated, the maintenance becomes hassle-free.’
Benefits of resorting to the cloud in brief:
- It provides application scalability.
- One can acquire cloud ERP without having to worry about managing hardware.
- As a result of this, hardware costs are reduced significantly.
- Thus, it is a time saver.
The scenario then and now:
Buying, building and maintaining exclusive infrastructure in spite of the associated costs has been, kind of, mainstream amongst IT firms. But, SaaS has deviated from the norms of traditional business models and given them a better alternative. Here’s why it’s turning popular day by day:
- Absence of Vendor Lock-ins:
SaaS apps require subscriptions. So, if customers decide not to renew software, the providers are the only people who will be accountable.
- Easy availability:
SaaS-based applications can be accessed from any computing device and from any location on this planet at any time. And, because the Internet has come of age and grown immensely popular amongst people, SaaS applications are readily being accepted by all without learning becoming bothersome.
- Goes easy on the wallet:
SaaS apps are purely subscription driven. So, you are not paying for any license or its periodic renewal. Initial costs incurred are, thus, very low. Furthermore, upgrading a SaaS system is trouble-free. In fact, you don’t even have to bother about it, because the provider manages it all. No extra patches to download, nothing to install. The provider will also manage your system as the user base expands, including software and hardware addition, and bandwidth updating. And, if there’s a bonus in your cards, you’ll be offered customisation facilities, too.
- Dynamism:
Apps based on Software-as-a-Service are continuously undergoing innovative changes. Developers are inclined more toward taking software to the next level rather than tinkering with the same old codes. For instance, observe the big players like eBay, Google and Yahoo! They are in a continuous process of development and never stop in between. That’s how novelty is brought about in a business and productivity gets a boost.
Must Read – 3 -Tier ERP: A Great Support to Your Organization
Why should SaaS ERP be considered for Enterprise and IT?
SaaS simplifies deployment and cuts down customer acquisition costs. It allows developers to manage many clients using just one version of the software. This is known as the multitenancy approach, which lets enterprises and IT firms grow without having to go for costly infrastructure or manpower expansion. Also, because these hosted products are subscription based, it keeps IT budgets in tight check.
These are reasons enough to consider SaaS for your business. As a matter of fact, the entire IT industry is slowly shifting gears toward these subscription-based alternatives. Would you not like to save your business from the clutter of on-prem software and indulge in SaaS this 2015? Think.
