On-premise Erp And Saas Erp Solutions: The Battle Is On!

By Author: elan technologies
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There are innumerable options in both scenarios and both have benefits and risks. On-premise setup helps your business to meet your needs, however broad they are. The on-premise market segment is prevalent in the market since long and is unquestionably well-developed and based on sturdy grounds. However, the corporate world is fast giving up on on-premise ERP solutions because of the cost involved. Hence the decline is expected to continue.

Forrester Research, Inc. the eminent research company has projected on-premise ERP sales to decline considerably by 2.5% from 2011 to 2015.

In sharp contrast though, Forrester has reported that the SaaS ERP market is expected to grow by leaps and bounds with a 22% compound average growth rate till 2015. SaaS web apps which are in huge demand too are on the rise.
One reason why businesses opt for SaaS is because of the immense scalability benefits. The ERP spend can be adjusted accordingly while the computing capacity can be scaled up and down based on requirements and budget.

The changes can be implemented due to market shifts too. In contrast, once an ERP license ...
... has been bought, it cannot be refunded. SaaS also aids in administration and the ERP vendor is responsible of its security and safety. Thus, SaaS helps companies to spend more time focusing on core activities rather than troubleshooting IT problems.

Additionally, SaaS vendors levy a recurring subscription fee on a monthly or quarterly or annual basis. This fee gives the right to access the software but absolutely no rights are transferred or take possession of any software.

But some analysts also claim that there are some loopholes and business continuity risks in the SaaS concept which can be avoided by using on-premise ERP. With SaaS, companies have to deliver their critical data to the vendors, who store the data in different repositories. ERP is actually a company’s nervous system which is controlled by somebody else in this instance. Companies are always hesitant to relinquish control and hand over data to an outsider.

Some of the basic characteristics of SaaS solutions include:

1. The solution must provide on-demand self-service
On-demand service is a major aspect of SaaS services. A cloud user should be able to readily access SaaS web apps as and when needed without human intervention.

2. The solution must be capable enough to provide broad network access
The user should be able to connect from anywhere without the need of a standard device and anytime of the day.

3. It must provide resource pooling.
One user or multiple users should be able to share computing resources simultaneously without much difference in speed and performance. SaaS solutions always follow this “multi-tenant” model of accessibility.

4. The SaaS ERP solution must be rapidly elastic.
This means that computing resources are always available on demand. If the demand increases, additional capacity can be allocated swiftly without any overheads and wastage of time.

5. SaaS solutions must be measured services
The cloud provider always needs to keep track of its service and usage. They are required to monitor and optimize usage too.

Elan Technologies is a Leading Web App Development company that provides SaaS Applications by experienced Subscription Developerwith best technical support.