There are several advantages of Cloud/SaaS over On-premise ERP software (or any software solution).  Before we get into the benefits, let us look at the basics:

Definition according to Wikipedia - SaaS - Software as a service sometimes referred to as "on-demand software", is a software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser.

According to me one of the biggest advantages of SaaS is its pay as you use model, there is minimum or no upfront cost. This advantage is most beneficial to SMEs.

We can categorize all the benefits of SaaS over On-Premise into two, tangible (measurable) benefits and intangible (strategic/not measurable) benefits.  

Tangible Benefits of SaaS ERP:

·         No Upfront cost: pay  as you use model
·         Availability: up to 99.999%  uptime
·         Reliability : Automatic back up & data security (physical as well as digital)
·         Automatic Upgrades: no upgrades  requires
·         Faster & easier deployment
·         Fewer IT resources required
·         Minimum IT hardware/software required
·         Better ROI/TCO
·         No AMC required
·         Energy efficient ( greener solution)
·         Better productivity & performance
·         Lower operation cost & better bottom line

Intangible Benefits of SaaS ERP:

·         Better accessibly (anytime, anywhere)
·         Quicker scalability
·         Customer satisfaction
·         Employee satisfaction

While we are discussing the advantages of SaaS over On-Premise solution, let us also look at the disadvantages of SaaS (which are the advantages of On-Premise):

·         Very limited control over the software/data
·         Minimum customization available

There are several surveys  on why many ERP implementations have failed in spite of careful planning for its success.  One of the important factor which can reduce the chances of ERP failure is to have a external/independent consultant who can help you with the entire process of planning, selecting, customizing & implementing the ERP. 

An ERP consultant can help  you with any of the following:

  • ERP Selection
  • Project Management
  • Change Management
  • Infrastructure Management
  • System Integration

As ERP consultants would have worked with several ERPs, hence would be aware of Pros & Cons of each of them, would be familiar with the price-features comparison with other ERPs;  with this knowledge he can help you with the selection of a right ERP & this could save you lot of time & money. An ERP consultant also brings experience of several industries, including the best practices of your industries,  he can guide with setting up the SOP and /or BPR, which in my opinion a “must do” task before selecting the ERP.

Over the entire ERP selection and implementation process you would be inundated with the choices and in some cases it would be difficult to decide. An experiences consultant can   provide  you pros & cons of each options & the ramifications of some of the critical decisions.

“To hire or not to hire” an ERP consultant is a difficult decision. If you know what you are doing  and have experience  in selection & implementing  an ERP successfully in past,  then you may not need an ERP consultant, else, I would highly recommend  to hire an ERP consultant.

An ERP consultant/s can cost you 5-20% of the ERP cost, but it is worth it.  You will have a trusted adviser  who will guide you every step of the way and make sure that your ERP implantation is a success.

If you are a SME and are in the process of selecting and implementing an ERP for the first time or the second time and are not sure of the selection process and are having challenges short listing the vendor, calculating the ROI/TCO, setting up the SOP/BPR and need some Consultation or Advisory services please take advantage of our FREE Consultation  or Click Here.