Cloud computing has become the mainstay for most ambitious businesses in recent years, offering a multitude of advantages over on-premise software solutions. If you are seeking a reliable and cost-effective way to transform your business’s operations, improve data accuracy and visibility, and streamline your essential processes, Enterprise Resource Planning (ERP) software should be high on your priority list. However, you may be confused by the difference between Cloud ERP and ERP SaaS, as both refer to software platforms that are hosted off-site.

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In terms of performance, the differences between cloud and SaaS platforms are slim, so are there discernible advantages which you should consider before making a long-term investment in an ERP solution?

Cloud-Based Software

Cloud-based software is hosted offsite on a server owned by a software service provider and accessed on individual devices via the internet. All that is required is an internet connection and a web browser (on a desktop PC, laptop, or mobile device). Cloud computing makes resources available to multiple users on multiple devices, without the need for on-premise hosting.

An example of a Cloud ERP is a software product hosted by a vendor offsite but purchased through a one-off licence fee rather than a subscription. The difference between this option and a traditional software product is simply one of hosting – whether on a customer-owned server or a third-party machine. (There may be a nominal ongoing hosting fee, and maintenance and upgrades may incur an extra charge.)

  • With Cloud-based software, you have the freedom to customise or manage the application even if it’s stored on a third-party server. This enables you to modify the software to meet your business’s unique needs, as you would with a locally installed platform.
  • You may be responsible for maintaining the software, for example to install updates or security patches.

SaaS Software

Software as a Service (SaaS) is a method for delivering Cloud-based applications which are licenced by a software provider to a named user. The software is accessed and managed via the internet in the same way as Cloud-based apps and is licenced through a monthly subscription. A business chooses the level of service it requires and the number of users, so the SaaS provider can ensure the application meets their needs accordingly.

An SaaS ERP is not a product but a service. The customer never owns the software, rather it is provided as a package to the customer in exchange for a subscription fee, which also covers hosting, technical support, updates, and data backups.

  • SaaS software is delivered ready-to-use, so implementation is usually quick. However, because the software is already configured, you don’t always have the ability to customise it extensively.
  • All maintenance issues are handled by the provider, so you can be confident that you’re always working with the most up-to-date version.

Contact B1 Solutions For Professional ERP Advice

At B1 Solutions, our experts can advise you whether Cloud-based or SaaS ERP will be most suitable for the needs of your business, so please call us on 0808 164 9388 for more information.

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