Updated · Originally published
There is a lot of confusion over the terms "cloud computing", "Software as a Service (SaaS)", and "web-based software". Many times the terms are used interchangeably, and according to one ERP blog I read recently even ERP service press releases tend to use the terms without discernment.
This should not be a surprise since IT professionals, myself included, tend to throw around words like "cloud" without explaining what they actually mean. To further complicate the issue, the term SaaS is a primarily a business term rather than a technological one.
The distinction
Web-based software is nothing new, and as long as web browsers have existed, some vendors have sold software that runs either on Intranets or the Internet via web-based software.
Cloud computing refers to the utilization of software, hardware, and other resources through the Internet, offered on-demand as necessary. This is a rather broad concept. People use the "cloud" for everything from personal email to server database storage.
SaaS specifically refers to software that is delivered on-demand over a network. Customers pay for the software, usually on a subscription basis, and receive full functionality, just as if they were using the software in a desktop application.
Because cloud computing can refer to things other than software (such as Content Delivery Networks), everything that is considered cloud computing is not necessarily SaaS. Similarly, software as a service can be delivered without using the cloud. Lately, however, the cloud is becoming a popular method of delivery.
ERP software, such as Microsoft Dynamics GP has historically been deployed on-premise rather than in the cloud, but Microsoft has been increasingly adding support for online service integration. Added online services mean that customers can have the best of both worlds: on-premise software tools and also integrated on-demand services.
Plus, you can subscribe to Microsoft Dynamics GP for a fixed monthly cost thru the SaaS model. You can also purchase the software and have it “hosted” at a data center. Hosting? That adds even one more term to the mix.
Your best bet is to speak to a local Microsoft Dynamics GP partner to find out which deployment option best suits your needs.
By ERP Software Blog Editors, Local Directory of Microsoft Dynamics ERP Experts
! knew nothing about SaaS before reading this, so thank you for the information. It's good to know that cloud computing is not exclusive to software. What delivery methods, besides cloud, are used for SaaS? It will be interesting to see what advancement are made in this field in the future! Thanks!
I think that only is the best suited for all types of industries.