ERP: Differences between Cloud and SaaS

ERPAn ERP, Enterprise Resource Planning, is a solution that allows to globally manage a company. With this tool, you will be able to manage orders and inventory of a business, but also the human resources department and finance, etc. However, implementing this software is not always straightforward, especially since it can be confusing to choose between an ERP Cloud and an ERP SaaS.

Cloud ERP and SaaS ERP are often talked about as if they were synonymous. But although these two software systems share some similarities, they are not the same. Understanding the difference between the two will help you better understand the enterprise technology landscape.

Comparison between an ERP Cloud and an ERP SaaS

The ERP Cloud as well as the SaaS ERP operate online and involve a relationship with a service provider. But the second (SaaS) is a type of software based on the cloud, therefore we could say that all ERP SaaS are Cloud, but not all ERP Cloud are SaaS. To help you better understand the differences between the two software, here is what each one offers.

  • ERP Cloud

ERP Cloud is software that is based on cloud computing architecture and has two key features: the company that hires it accesses it through the Internet and the servers where it is hosted are located in an external data center, which is generally not owned by the company that uses it.

Companies pay vendors for the specific functionality and resources they require and users can customize the ERP adding more resources or eliminating those they no longer use. Providers are responsible for hardware and software maintenance and updates. Some ERP Cloud can allow organizations to have more control over their ERP system, but in this case, the cost is higher and more IT resources are required.

  • ERP SaaS

This is a type of cloud-based ERP software that is distributed as a service over the Internet and is characterized because it is sold as a per-user subscription that is paid on a monthly or annual basis. Unlike Cloud ERP, this type of solution runs on the provider’s servers.

One of the most important features of the ERP SaaS is that it is designed to be user-friendly. In addition, the provider is responsible of maintenance and updates, usually on a quarterly basis. All this helps reduce IT costs and promote system security by protecting the system from threats and failures.

Which is more convenient?

ERPThe ERP Cloud, as well as the ERP SaaS, allows to access the system from any connected device and offer improved security and data storage capabilities, as well as faster and simpler implementations. However, depending on the type of business you have you might want to choose one or the other.

If you have a company that is too large, with an unusual business model or very strict security requirements, you may prefer a Cloud ERP.  This will allow you to have more control over the software, although in this case, you will need more financial resources and IT staff.

For most organizations, an ERP SaaS can be the better solution because it offers low initial costs and you don’t have to worry about technical and technological details because the provider takes care of everything. Plus, it offers perfect scalability; you only pay for the users who actually need access to the system.

An excellent option is Oracle NetSuite ERP. If you want to know what this SaaS software offers and why it is right for you, contact us. We will help you make the best decision for your business.


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