If you’re thinking about getting an ERP system to make your business run smoother, you’ve got plenty of choices. But before you choose, there’s one big decision to make: do you go for a SaaS-based ERP or stick with an on-premise ERP? This choice is super important because once you’ve set it up, it’s a hassle to change later on.
The main difference between these two types of ERP is how they’re set up. On-premise ERP lives on your company’s own servers, while SaaS-based ERP lives in the cloud, which basically means it’s hosted by a service provider.
These days, SaaS-based ERP is getting more popular because it’s flexible and doesn’t need much fancy hardware. In this blog, we’ll compare & understand the two types so you can figure out which one works best for your business.
On-Premise ERP
” On-premise ERP” or “on-premises ERP” refers to an Enterprise Resource Planning (ERP) system that is installed and operated locally on a company’s own hardware and servers, rather than being hosted in the cloud. In this model, the ERP software is purchased as a perpetual license, and the company’s IT department is responsible for installing, configuring, and managing the system.
On-premises ERP solutions have been the traditional choice for many businesses, particularly those with sensitive data or specific customization needs. However, they also come with some challenges, including higher upfront costs, longer implementation times, and the need for dedicated IT resources to manage and maintain the system.
High Cost:
One of the primary considerations with on-premises ERP solutions is the substantial upfront investment required. From hardware procurement to software licenses and implementation costs, the initial financial outlay can be significant. For some businesses, especially smaller ones, this upfront expense can be daunting.
Data Back-up:
On-premises ERP systems offer the reassurance of having data stored within the company’s own servers, providing a sense of control and security. However, this also means that the responsibility for data backup and security falls squarely on the organization, necessitating robust IT infrastructure and expertise.
Lack of Scalability:
Scalability can be a challenge with on-premises ERP solutions. As your business grows or undergoes changes, scaling up the system to accommodate increased demand or new functionalities can be complex and time-consuming, often requiring additional hardware investments and IT resources.
SaaS Based ERP
SaaS-based ERP, or Software as a Service Enterprise Resource Planning, is a type of ERP system that is hosted and accessed through the internet, rather than being installed and operated on a company’s own servers. In simpler terms, it’s like renting ERP software that is maintained and managed by a third-party provider.
SaaS-based ERP offers flexibility, accessibility, and cost-effectiveness, making it an attractive option for businesses of all sizes, particularly those looking to streamline operations without the complexity of managing their own IT infrastructure.
Low Cost of Deployment:
One of the standout advantages of SaaS-based ERP solutions is their affordability. With no hefty upfront costs for hardware or software licenses, businesses can benefit from a pay-as-you-go model, making it more accessible for organizations of all sizes, especially start-up’s and SMBs.
Constant Updates:
SaaS ERP solutions are known for their agility and adaptability. With automatic updates rolled out by the provider, businesses can stay at the forefront of technology without the hassle of manual upgrades. This ensures that your ERP system remains current, compliant, and equipped with the latest features and security patches.
Ease of Scalability:
Perhaps the most compelling advantage of SaaS-based ERP solutions is their inherent scalability. Whether you’re expanding operations, adding new users, or integrating with other systems, scaling the software to meet evolving needs is seamless and hassle-free. This agility empowers businesses to respond swiftly to market changes and growth opportunities.
SaaS-based ERP emerges as the preferred choice over on-premise ERP for your businesses seeking agility, scalability, and cost-effectiveness. The flexibility offered by SaaS solutions, with their accessibility from anywhere via the internet and subscription-based pricing model, aligns well with the dynamic needs of today’s organizations. Moreover, the automatic updates and seamless scalability of SaaS ERP systems ensure that businesses can stay ahead in a rapidly evolving digital landscape without the burden of manual maintenance or significant upfront investments. Therefore, for businesses looking to streamline operations, enhance collaboration, and drive growth, SaaS-based ERP represents the best choice for maximizing value and staying competitive in the long run.
ACCNU – Multi-Tenant Cloud Based SaaS ERP
In the realm of SaaS-based ERP solutions, ACCNU ERP stands out as a comprehensive and user-friendly platform designed to streamline operations, enhance collaboration, and drive business success. With its intuitive interface, robust features, and seamless scalability, ACCNU ERP empowers businesses to optimize processes, improve decision-making, and achieve their strategic objectives.
If you’re thinking to select an ERP system and would like to consider a SaaS based solution, then ACCNU is the Best ERP, get in touch with us. and we can discuss how this type of solution could benefit your business operations.
