Saas ERP Vs Cloud ERP: What’s The Difference?

Running a business with just a few employees can start feeling a little frustrating. Your finance teams are tracking numbers, operations are managing the work flows and each and every department uses their own tools to get things done. However, if they don’t communicate to each other, things do get messy. These are the problems that ERP systems are designed to solve. ERP systems help businesses run very smoothly. It also helps you make better decisions faster. 

But the major problem is when they start looking for ERP solutions and choosing between SaaS ERP and Cloud ERP. In this Article we will provide the comparison between these two systems, highlighting the key features and factors to consider when choosing the best for your organization.   

What Is ERP?

ERP(Enterprise resource planning) systems help businesses integrate all business processes into a single platform. Instead of using separate tools for finance, HR etc.. ERP systems give you centralized data and automates the workflow across all the departments.

What Is Saas ERP

Saas ERP is the type of cloud ERP which is provided through a subscription model through the cloud. This helps businesses manage processes like the finance, manufacturing, supply chain and HR operations. With Saas ERP companies pay a recurring charge to get access to the software through the internet, which avoids the need for in-house hardware and software installation. The Software company or the vendor is responsible for the maintenance and updation of the system. This gives the company access to the latest features. This also gives organizations scalability, which allows them to easily adjust their usage based on their changing needs. 

Advantages Of Saas ERP

The popularity of Saas ERP has grown a lot over the years because of the number of advantages. 

• Costs are very low and also predictable. You only need to pay for the users who will actually use the system. 
• Good out of the box functionality which meets your needs, from HR to accounting and CRM. 
• You can simply add more features as your business grows or you can reduce the user count in the next billing cycle.

Limitations Of Saas ERP

There are  very few downsides when it comes to Saas ERP. 

It offers very few customizations, even though many Saas ERP providers like us offer more configuration and customization you need. 

The security might be stronger with a cloud Saas. 

Costs increase as companies add users and increase very quickly when not monitored properly. 

What Is Cloud ERP

This is an ERP System hosted on a cloud platform, which also includes Saas, Paas(Platform as Service),Iaas(Infrastructure as a Saas). Traditional ERP systems require installations on the local servers. Cloud ERP is hosted on cloud servers and is accessed through a website. This gives the organizations great flexibility and cost savings.

These ERP systems can be customized to fit the needs of your company and can easily accommodate growth. These systems provide real time data from anywhere,  which helps you make better decisions.

Advantages Of Cloud ERP

Cloud ERP has increased in popularity because it gives several benefits over on premise ERP. 

• Lesser costs that are  paid upfront. 
• It provides faster implementation 
• Very secure access to the system and important business information from anywhere. 
• Better availability due to superior data centre hosting the cloud software. 

Challenges Of Cloud ERP

The disadvantages of cloud ERP are only applicable to some companies. These also include 

• Migration challenges when business change from on premise to cloud
• You have less control over data backup
• Security compliance and regulatory compliance when hosting and assessing customer information. 
• Even though many cloud ERP provide offer flexibility that can satisfy the need of your business. 

The Shift From On-Premise ERP To Cloud-Based ERP

For many years many companies mostly relied on the on-premise ERP systems that needed expensive servers, regular maintenance and inhouse IT teams to keep everything smooth. When businesses grow, managing this becomes very difficult. The rise in cloud computing changed everything. Now cloud ERP systems help companies to access powerful systems through the internet. This helps teams to work from anywhere and reduces costs.  

How Businesses Choose Between Saas ERP And Cloud ERP

If your organization is very large with very unusual business models and strict security systems, then hosted cloud ERP is the best option for you. It offers you great control over the software because you have the resources to manage patches and upgrades. 

Other small and medium scale organizations will get better results in Saas ERP. This is better for people who are looking for faster implementation, lower initial costs and less need for an in-house team to manage it. These companies know for a fact that leading software development companies offer better protection of their data.  

At Clarity Tech labs, we help companies achieve this by developing customized software solutions, building better automated systems and implementing secure cloud infrastructures. 

Our team focuses on helping your organizations adopt the latest tech that improve efficiency and support digital growth. According to a report by Anchor group, almost 70% of ERP deployments are now cloud based. 

Choosing The Right ERP Model

Both of these offer advantages and some limitations. You need to understand your business needs and guidance from Clarity tech labs to make the right decision. Selecting the best ERP solution from these options is very important for your company’s long term growth. For Small and medium scale businesses our solutions are a game changer. We specialize in customizing ERP systems according to the unique needs of small and medium scale businesses. With a proper strategy and implementation partner you can unlock the full potential of your business.