The architecture of technology infrastructure has steadily shifted its focus upward in recent years and businesses are looking to the clouds to meet their computing needs on a more frequent basis every day.  Having been recently added to the modern lexicon the public and, more specifically the business software customer is rapidly having the veil of mystery ripped from their eyes as references to cloud-computing are routinely made by mainstream business “jargonistas” far and wide.   That being said, what is cloud-computing, anyhow?  As new terminology slips into common usage, understanding often comes to occur on the basis of assumption or context.  Those businesses that are in the market for SaaS ERP (enterprise resource planning) system do well to make sure that know full well what they are shopping for.

SaaS ERP:

Cloud-based computing with a silver lining

SaaS (Software as a Service) is a means by which a business can obtain all the functionality of full blown traditional business software like SAP or Oracle while avoiding a major infrastructure overhaul. Located off-site on remote server farms, SaaS ERP packages provide functionality via thin clients. End-users receive the tools necessary to efficiently perform by virtue of the seamless delivery of SaaS ERP functionality.   Transactions zip through cyber space at lightning speed with the end-user none the wiser.

SaaS ERP has its advantages, not the least of which is reduced initial capital outlay, speedy cost effective implementation and the remote location of data as a ready-made disaster recovery opportunity.  These factors make it very attractive to small and medium-sized businesses.  SaaS ERP offers an alternative to a market sector that often operates on a severely limited IT budget but still needs the functionality of a monster software package to remain competitive.

Buyer beware however, while the hardware requirements demanded by cloud-based architecture is cost much less than those of traditional systems, support and service plans of these highly customizable packages can often reach the levels of traditional systems once the extra costs of consultation and support are factored in.   Maintenance and expansion programs can break the bank with SaaS ERP systems.  

An effective selection team will make good use of decision matrices; know their system, plans and long term goals.  As with any software system, support can typically be written into the initial SLA (Software License Agreement) and well negotiated maintenance schedules will keep the purchase within budget.

The SaaS ERP market has drawn attention from the big boys with SAP working introduce its own SaaS ERP offering to meet the needs of those who find their heads in the clouds.   SaaS ERP is indeed a viable alternative for many small and mid-sized businesses as long as they take the time to know themselves and clearly define long term objectives so that they don’t find themselves in the unenviable position of repeating the ERP selection and implementation processes in just a few years time.  

Flexibility and scalability are major considerations when deciding for or against SaaS ERP as the strategy for building the framework that supports business transactions and best practices now and for the foreseeable future.  Cloud-based computing can indeed have a silver lining as long as it is not all smoke and mirrors.  

Written by :

Don Cooper