Friday, November 26, 2010

SaaS ERP

Enterprise Resource Planning (ERP) is a computer-based system that handles both internal and external resources. These resources could be financial resources, human resources, materials and capital goods. The architecture is designed to provide information throughout the organization - from department to department - and outsiders who have a stake in the company. Run on a central database, ERP consolidates all so that is very streamlined and uniform throughout the company.

SaaS vs. Traditional ERP ERP

There are a number of reasons why ERP SaaS is better and worse than traditional ERP. Finally, when you choose one for your business, these differences should be weighed heavily. They will provide insight into which product is right.

Flexibility

Traditional ERP can be customized and optimized the way you want, because it is installed directly on the server. SaaS ERP is not. So when it comes to SaaS, you have less customization techniques and, therefore, need less technical skill to run it. However, due to the decrease of customization, if there is something specific you want a do, SaaS may not be able to let that happen.

Simplicity

As mentioned above, since it is not as flexible, SaaS is easier to use because you do not need much in technical expertise. Since SaaS is not just, you do not have to worry about putting up new servers or something like that. However, because it is so easy, you might run into some complex that would not otherwise incur when trying to implement various aspects of ERP.

Control

Going hand in hand with the flexibility and control. For small businesses that do not have a team of great technique, giving up control for ease of SaaS is not a bad thing. However, for medium to large companies that can afford large technical teams, having more control over the ERP is beneficial and, therefore, ERP is a traditional favorite. For small businesses, however, SaaS is ideal.

Accessibility

It is a fundamental. SaaS requires Internet. Traditional does not. In the event of a crash of the Internet, you lose access to the ERP. Traditional, provided that the company has an internal network, you can access at any time.

Cost

SaaS is cheaper to implement in the short term. However, since you're leasing the annual costs may well become high when you add more employees. Traditional is a cost single time because you own the software after it is installed on the server. Thus, in the short term, SaaS is definitely cheaper. The long-term traditional is more convenient.

Article Source: Kenny Blog

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