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Different from
Cloud ERP
An Overview 1
• ERP in modern times
• Cloud ERP
• Cloud ERP for small businesses
• Software as a service (SaaS)
• SaaS for small businesses
• SaaS characteristics
• Benefits of SaaS
• Difference between Cloud ERP and SaaS Model
• Is SaaS the solution for your business?
• Conclusion
ERP in Modern Times 2
With change in technology over the years, ERP software too have evolved and become compatible to the
needs of modern-day businesses
Breakthrough success in areas such as cloud computing, and SaaS-based services has meant that the
companies these days get increased functionality at a lower cost from the ERP vendors
This has also opened the doors of contemporary ERP systems for business of all sizes, including small
enterprises
Modern ERP solutions have made small businesses battle-ready to take on competition and venture into
markets earlier dominated by big companies
With modern ERP’s benefits like streamlined operations, improved productivity & efficiency, effective R&D
and product development, access to real-time data etc., the small businesses are thriving
Cloud ERP 3
Cloud ERP is hosted on vendor’s servers and consists of infrastructure and services that you can rent such as
servers, data storage capacity, communications and messaging capacity, and network capacity
The software and its data is managed centrally at a remote datacenter (Internet "cloud") by the ERP vendor
Data can be accessed by customers through a web browser, from anywhere and anytime using any device
Cloud ERP is cost-effective as the maintenance and support costs get eliminated with the support being
provided from remote data center. Customers can pay only for what they use through easy monthly
subscription
With Cloud ERP, the firms also have the benefit of secured data with back-up since it is not stored on their
servers locally
With Cloud ERP, customers have full control over the software, while in SaaS model vendor has the control
Cloud ERP for small businesses 4
Cloud ERP is a one-stop solution for small businesses. Listed below are some of the reasons that convinces
small business owners to raise their hands for a cloud ERP:
Cost:
Deployment:
- Installed on the vendor server and accessed over the internet through any web browser
- No installation on client’s machine
- Saves time & reduces installation complexities
Cloud ERP for small businesses 5
Implementation:
Maintenance:
- Shrinks the cost of software maintenance and support, as ERP vendor handles the upgrades and backups
Continued Support:
It is a software licensing and delivery model in which software is licensed to a user and accessed through internet
by any web browser
The user does not need to install and maintain the software, as the application runs on the servers and datacenter
of the SaaS provider
The third-party vendor is responsible for the security, performance, and maintenance of the application on their
servers
Provides facility on monthly subscription basis, therefore cost is based on service level and number of users
Assures regular data backup and disaster recovery plan. Offers scalability and flexibility to organizations with
limited size
SaaS applications run ‘in the cloud’, but they are not the cloud
SaaS for small businesses 7
SMEs get the following benefits after opting for SaaS business model:
- Automatically scales up and down according to the level of usage, just pay as you use
- Run most apps directly from web browser without downloading them
- Eliminates the need to install any software on machine
SaaS for small businesses 8
Mobilization of workforce:
- Mobilizes workforce by providing real-time access from any location and any internet-enabled device
- Service provider sorts out all issues and bugs of the software
- Ensures smooth functioning of the software
- Data gets stored on the cloud, users can access information from any device
- When data is stored on the cloud, no data is ever lost even if user’s computer or device fails
SaaS characteristics 9
Multi tenant architecture
Easy customization
Scalability
Seamless integration
- Reduces cost of purchasing software licenses, installing hardware, and setting up the network
- Lowers expenses of maintaining IT infrastructure
- Pay as you use the software
Fast Upgrades:
Enhanced Security:
- Ensures data safety by using right tools and testing all the vulnerabilities
Benefits of SaaS 12
Support:
Ease of management:
Cross-device compatibility:
- Ideal for those who use a different device such as mobile phones, laptops, tablets, or PCs
Difference between Cloud ERP and SaaS Model 13
With Cloud ERP, a user is able to customize and manage an application on a server that is hosted
by a third-party. You are given access to your data on those servers via the internet
With SaaS, you pay a subscription to access an already developed software application via a web
browser. You don’t have the responsibility of maintaining the software. You lose some control
over the management and customization of the application
Cloud ERP system is an ERP software with off site hosting solution which is scalable, flexible and capable to
access real time-data for industry of any size
SaaS offerings, on the other hand, are comparatively smaller and best suitable for the organizations having
limited operations, size and global presence
For purchasing Cloud ERP, you pay for the complete software
While opting for ERP with SaaS, you pay as you use the applications
Difference between Cloud ERP and SaaS Model 15
III. On the basis of acquisition:
A Cloud ERP system is purchased and acquired from an ERP vendor for use
SaaS ERP is rented or borrowed through internet on subscription basis and used according to the need
Cloud ERP system controls your data and your application through server with full control over application.
Customer has full control over the software
Only vendor has full control over the application, as they host SaaS on their own infrastructure instead of
locating on-premise. Customer does not have full control over the application
Is SaaS the solution for your business? 16
Now that we know the basic differences and definitions of Cloud ERP and SaaS, we can say that:
With SaaS, businesses eliminate capital expense of IT infrastructure and invest in enhancing innovation to
generate more revenue
With Internet connectivity at our fingertips, users can easily access the ERP application and data
As technology improves, the infrastructure cost rises. Thus companies are adopting SaaS to reduce the cost
incurred
- Cost reduction
- Better scalability
- Innovation
- Efficient planning
Conclusion 17
With Cloud ERP, you don’t have to host, maintain, or upgrade the servers. You have access to your data in
real-time, whenever you need it. Costs are usually lower because you just pay to rent space on the hosted
servers. You usually pay for a subscription to have access to your data. Cloud is computing infrastructure and
services that you can rent.
SaaS is a cost-effective way to have real-time access to software whenever and wherever you have an
internet connection. You don’t have to worry about server maintenance. Multiple users from 10 – 10,000
can access have to the same software. SaaS offerings are applications that are fully formed end-user
applications.
We at BatchMaster, provide both SaaS-based as well as Cloud ERP solutions. We offer affordable monthly
subscriptions, latest and automatic upgrades, 99.9% uptime assurance, absolute data security and work on pay
as you use model
About BatchMaster 18
30+ years of experience 7 offices around the globe
ERP solutions for small to mid-sized industries Available in 3 languages- English, Chinese, and Spanish
SAP B1 and Microsoft certified solution Original developer of formulation system in ERP
• To find out the growth after cloud ERP gets implemented in your business, read our blog on Why cloud ERP is
advisable for small businesses?
• To know what are the basics before your switch to a cloud ERP, go through the blog on 6 Questions to Ask Yourself
Before Moving to Cloud ERP
• Also, To know how Cloud ERP helps in growing your business, read the blog on Thinking Business Growth with Low
Investment? Think Cloud ERP!