Key Differences Between SaaS And ERP

Key Differences Between SaaS And ERP
ERP Consultant / Erp software

Key Differences Between SaaS And ERP

You must have heard the terms SaaS and ERP quite often in the business sector. These talked-about terms are slightly different in terms of operations and functionality. This article takes you through some of the key differences between SaaS and ERP, allowing you to decide what your business needs the most for smooth functioning.

While SaaS stands for ‘Software as a Service’, ERP is an abbreviated form of ‘Enterprise Resource Planning’. While both of these software solutions solve the business management concerns, here are some factors that make them different in their own ways:

Customization

An ERP has an advantage here. While an ERP system can be customized as per the client’s specific needs, there are limits as to how well a SaaS can be customized.

Implementation of the Software

While ERP is usually installed to your own server, this is not the case with SaaS. SaaS is on a shared server, which can create many hiccups technically and on an operational level.

Accessibility

SaaS is a web-based application that can be accessed on a Cloud platform if you have good internet connectivity. This means that it can be easily accessed from any part of the world, and at the same time, the system may not function if the internet is down. ERP does not need internet access, hence you can work on it offline too.

Cost of the Software

When it comes to SaaS, the initial payment is much lesser compared to the ERP, but you have to pay an annual amount to keep using the SaaS software. Meanwhile, an ERP would cost you a higher amount which is a one-time payment. You would not have to pay for the ongoing usage of the software. However, if modules are added to the existing software, there would be additional costs involved.

Control of the System

You have better control of the complete system while using an ERP system. It can be customized as per the company’s requirements. For smaller companies, a SaaS software would be better. These companies can easily adapt to the software, but a larger company may prefer an ERP software.

Flexibility

As an ERP system is solely managed by you under your server, you can optimize it as per the business needs. SaaS has limited flexibility for customization or integration with other systems.

Features

SaaS has a certain set of features that cannot be changed. An ERP software’s features and modules can be added or optimized as per the business requirements.

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