The Benefits and Differences of Web-based, SaaS and Cloud ERP

With Cloud ERP technologies being the current craze, the term cloud technologies has become synonymous with SaaS offerings, web-based software, and cloud applications. Vendors and consumers have already began to use the three terms interchangeably, and  although each offering of ERP solutions do have their benefits, they do contain some key differences from cloud ERP software.

Web-based software technology has been lingering in the tech market for quite some time, and as a result are not as posh as the “latest and greatest” cloud ERP technologies. The major difference between the two is that web-based tech relates strictly to software, and cloud technology can include software, hardware and storage systems and may or may not be web-based.

The difference between SaaS ERP and Cloud ERP technologies is that SaaS is like renting a home. Users of SaaS ERP pay their monthly rent (license fees) and are only able to do some minor configuration to the software, whereas with cloud technologies, users may have full ownership. The benefits of a SaaS software deployment are a low initial cost of ownership, no software installation, and little to no maintenance costs.

However, Web-based applications are able to run as SaaS within a cloud to reap the benefits of using all three models. The table below shows some of the advantages of deploying an ERP solution utilizing the three different models.

ERP solutions that are web-based and deployed through the use of cloud technologies are able to minimize costs of building and maintaining ERP software applications, and SaaS solutions provide their own pros and cons. Since ERP solutions are highly sophisticated and complex, the relative importance of the benefits of each deployment method and combination  need to be weighed with the financial benefits when choosing which software system is the right fit for an organization.

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Comments (3)

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  1. Hopper Grace says:

    I read your blog and found it very much informative about ERP Solutions.Thanks for sharing.Keep blogging.

  2. Hopper Grace says:

    Cloud APIs are application programming interfaces used to build applications in the cloud computing market. Cloud APIs allow software to request data and computations from one or more services through a direct or indirect interface. Cloud APIs most commonly expose their features via REST and/or SOAP. Vendor specific and cross-platform interfaces are available for specific functions. Cross-platform interfaces have the advantage of along applications to access services from multiple providers without rewriting, but may have less functionality or other limitations vs vendor-specific solutions.

  3. Just as ERP was deemed the panacea for all business automation pains, Cloud ERP is positioned as a revolutionary approach to deploying an ERP solution. Cloud ERP provides a solution that is flexible, adaptable, scalable, efficient, and affordable. Customers can enjoy painless upgrades, rapid deployment, and easy customization along with availability “anywhere at anytime”! Practically speaking, Cloud ERP is just another deployment option available to customers. The activities required for an “on premise” ERP implementation are also required for Cloud ERP. The scope and responsibility for the implementation activities may be different but most assuredly they are still required. Let’s further discuss the key impacts that a Cloud ERP deployment will have on the implementation.

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