It’s a question hotly debated on all corners of the internet. These days, it’s tough to find a straightforward answer, and for good reason: SaaS ERP and Cloud ERP are merely extensions of the broader overall concept of ERP through Cloud Computing. As a result, their differences can be quite nuanced to the uninitiated.
To set things straight, we’re devoting an entire article to thoroughly illustrating these two ERP concepts. Here, you’ll find a complete definition of these terms and learn the different applications for each type of software.
What is ERP, and why use it?
Before tackling the different approaches to Cloud Computing, let’s go over the basic definition and uses of ERP software.
To start, ERP stands for Enterprise Resource Planning. Behind this somewhat cumbersome name hides a concept that’s actually quite easy to understand. ERP software is a solution that assists you in the overall management of your company. In other words, ERP lets you manage not only inventory and orders, but also your HR department as well as employees on the ground and in the field. It can oversee your B2B and B2C sectors, and even your accounting.
An effective ERP solution serves as a holistic system encompassing every facet of your operations. All your company’s data is centralized around this software solution. In turn, the internal workings of all your departments are simplified and optimized. You save time and personnel, achieving economies of scale.
For these reasons, your choice of ERP software is one of the most important decisions you can make as a businessperson.
On-premise vs. Cloud
The next thing to know about ERP software is that it’s available as either on-premise software or via the Cloud.
With an on-premise solution, you buy your software and install it on your computer or corporate server. Although this was the solution of choice for many years, on-premise software is now disappearing. Each edition ends up frozen in time, unable to be updated.
Today, Cloud Computing has largely supplanted on-premise software solutions. Simply put, the technology lets you benefit from a piece of software without installing it on your computer or corporate server.
With Cloud Computing, instead of owning a single version of the software, you subscribe to all versions, current and future. Additionally, your software is hosted on a remote server, a practice that’s very much part of the new consumer experience. Take Netflix as an example: you no longer buy a film, but instead watch it through a dedicated service. These new digital solutions offer greater rewards at cheaper price points.
Certainly, it seems as though your best choice for an ERP solution is through the Cloud. But there are still different options available to you. Specifically, you can opt for a SaaS ERP solution or a Cloud ERP solution.
What is a SaaS ERP?
The first of these subcategories is the SaaS ERP. SaaS (Software as a Service) solutions offer ERP services based in the Cloud.
Hosted remotely, this type of solution is currently preferred by most customers. It’s located on the provider’s servers and offers regular multitenant updates.
In other words, SaaS ERP doesn’t require you to pay for updates or install anything whatsoever. Your employees can access it via a username and password from any device—smartphone, tablet, or desktop. It’s a simple, quick solution, allowing you to track your business’s growth from all angles.
What is Cloud ERP?
Cloud ERP offers a similar solution, but with a few key differences. The entire service is entirely outsourced. It’s a novel business solution that’s spearheading the next generation of software.
Flexible, fast, and above all economical, Cloud ERP solutions let clients rely on a third party for their ERP needs. In other words, the software is hosted on your supplier’s servers and fully managed by them.
Updates, bug fixes, and new features are directly upgraded (at no additional cost) through your subscription with the supplier. Your business benefits from the latest, most evolved generation without ever paying for an update.
In terms of cost and functionality, it’s the most efficient solution. Therefore, Cloud ERP fits directly under the umbrella of SaaS ERP, keeping in mind the subtle nuances we’ve now explored.
Why choose an outsourced ERP?
Now that we’ve determined the differences between SaaS ERP and Cloud ERP, let’s discuss the advantages of the latter:
Cloud ERPs offer a wide range of solutions, features, updates, and unique tools. These capabilities increase your overall productivity exponentially.
Your data is stored on the Cloud, where it’s only accessible to authorized company players. Consider your outsourced ERP an extra layer of security.
With Cloud ERP, you can access data from any location. Keep your teams limber and adaptable in any situation.
Choosing an outsourced ERP solution, instead of opting for on-premise solutions, keeps costs down. Remember, upgrades are included!
Lastly, Cloud ERP improves the accessibility of your data. Your team needs only a username and password to connect to the software, thus simplifying remote work.
If you want to increase production capacity, a Cloud ERP solution is essential for your success.
Choose the right Cloud ERP with Gestisoft
Combining advanced technologies with unparalleled customer support, Gestisoft’s Cloud ERP services stand out among the most profitable ERP solutions on the market. Innovative, modern, and multifaceted, Gestisoft gives you the right tools to grow your business.
Gestisoft develops tailor-made tools for all types of businesses, offering VSEs and SMEs unique ways to organize their structures and achieve economies of scale. Its powerful Cloud ERP solutions meet your needs precisely and efficiently, giving you a boost in a world where change and adaptation are the keys to success.