Published on: December 10, 2015
in: Company News
The enterprise resource planning (ERP) software market is going through a revolution caused by the accessibility and scalability of cloud applications. Cloud ERP, and specifically, SaaS (software as a service), are driving the change through lower costs and faster implementations.
Cloud applications are maturing and are rapidly becoming entrenched in IT departments across the country. More than half of US companies now use some form of cloud software and many more are making plans to move additional systems to the web. Organizations that began with simple cloud-based reporting are now moving toward putting their core software on the web, including cloud ERP.
According to an Aberdeen Group study, organizations that have chosen SaaS for their ERP deployments are more effective and productive than those that have an on-premises ERP installation. These companies reported improvements directly related to their ERP solution. While on-premises installations offer significant benefits, SaaS installations offer more. In particular, there is a greater financial benefit to SaaS due to a reduction in operational and administrative costs. In addition, SaaS installations saw a greater improvement in inventory operations and product shipments.
SaaS ERP Reduces Operational and Administrative Costs
Here are some of the benefits you can expect to realize from using cloud software for your ERP.
Lower Costs, Faster ROI
With a cloud software ERP model, upfront costs and on-going maintenance costs are reduced, providing a faster Return on Investment (ROI). The SaaS ERP implementation, on average, pays for itself within two years, while the on-premises ERP installation requires 31 months. If you do not have an internal technology infrastructure or your own IT team to maintain your software, a cloud-based model offers a more cost-effective means to implementing an ERP. On-premises implementation projects are more likely to go over budget with unforeseen costs. When your ERP is hosted elsewhere, you greatly reduce the cost needed to keep your technology infrastructure current. With a SaaS deployment, you gain all of these benefits, plus you only pay for the application as you use it.
Faster Implementation and Upgrades
Because you do not need to purchase and install on-site technology, the cloud ERP installation can be executed more quickly with less disruption to your business. The Aberdeen Group study found that implementing SaaS ERP, on average, took only seven months compared to eleven months for an on-premises solution. With the SaaS model, you receive new features and functionality as they are available because you can automatically receive updates from your vendor.
More Flexibility, Scalability and Accessibility
A cloud ERP provides access from any device on any platform without expensive software or customization. This model is especially valuable when you have multiple locations that need access to real-time updates and reports. Cloud applications increase the ability to collaborate among a global workforce, enable more agile decisions and promote common organizational standards.
Enhanced Security and Backup
While security is a concern for any system connected to the Internet, your data can be even more secure when hosted by a provider who can offer the latest technology to secure facilities and networks. A capable hosting site will also include disaster recovery plans.
At Mindover Software, we have access to hundreds of industry specific solutions that give you unparalleled freedom of choice, integration, performance, and reliability. We offer SaaS and cloud ERP products including Sage 300, Sage 100 and Accumatica. Explore the benefits of moving your ERP software to the cloud. Contact us to learn more.