Even though companies are more likely to consider SaaS applications over on-premises options, that doesn’t mean the extinction of in-house software. The cloud is powerful, but it’s not that powerful.
Choosing between SaaS, on-premise, and off-premise or hosted applications can be a challenge. There are a lot of options to consider. Smaller companies and start-ups are more likely to choose SaaS because it is more affordable and quicker to start up. A smaller up-front investment looks good on a new organization’s books and has a controlled monthly cost. Larger, established companies acquiring new businesses may consider SaaS for the new companies, while using licensed software at their main offices. Having already invested in on-site ERP at the office with software licenses lasting a few years or more, there is no need to pay for software again with SaaS. Most SaaS software, such as Microsoft Dynamics® ERP, can easily interact between the on-premise software at the main offices and with the SaaS at satellite locations.
SaaS can run on computers on-site or be delivered over the internet from an off-site location owned by the vendor or other third-party operator. Choosing between on-site and off-site deployment often boils down to whether the company has the means to employ an IT department capable of attending to the infrastructure. can be a big task and many companies are comfortable leaving some of these features up to vendors. Contracts with third parties delivering SaaS over the internet will clearly outline security measures, indicate what happens when there are outages, how back-ups and restorations might occur, and how they might address software glitches.
– SaaS, on-site, and off-site deployments. Contact BDO solutions for guidance on ERP software and deployment options that are most appropriate for your unique business needs.
By Jim Krahn with BDO Solutions,
Part of the reason the cloud is so tempting to small businesses is that it can grow or shrink with them. You only have to pay for what you need, and they might not be able to justify ERP software just yet.