ERP Solutions

Don’t Confuse SaaS ERP Solutions with the Other Guys

There’s so much terminology afloat these days.  I remember back in the 1990s when somebody asked me what I did “specifically” in the software field.  My answer was this, “I work on SAP ERP applications for R/3 including HCM and SCM but I’m really interested in working with EPM”.  Wholly cow!  I sure did get some funny looks but, they asked me “specifically” what I did so I figured they might have some idea.  I think they wanted me to say, “I program” or “I test”.  Such is life in this crazy ERP world on acronyms.

So, let’s get some things straight.  Cloud computing is not the same as SaaS (Software as a Service) or web-based.  However, you do use SaaS through the cloud.  The cloud depicts the internet.  Imagine if you will that your goal is to climb Mount Kilimanjaro.  You start your climb at the base of the mountain kind of like the customer begins computing at their computer terminal.  You begin climbing the steep mountain until you are literally in the clouds.  Similarly, the user on their computer terminal accesses the internet and then logs on to their SaaS ERP solution.  As you continue to climb Mount Kilimanjaro, you ascend beyond the clouds to the very top, which is your destination.  The user that logs onto their SaaS ERP solution works with their data and functionality provided by the SaaS ERP vendor’s solution.  The user has, in a sense, also reached their destination.  But, then you must descend back through the clouds and all the way to the base.  The user must log out of their SaaS ERP solution, exit the Internet, and turn off their computer.

Another term is that can be confusing is “cloud technologies”.  Cloud technologies can include hardware, software and storage systems.  Cloud technologies may be web-based or not.  Web-based ERP solutions are accessed through cloud technologies.  Web-based software can be accessed from anywhere while SaaS solutions can’t.

Once you understand all the different terminology and acronyms, you must decide what type of technology is best for your business.  SaaS ERP solutions enable businesses to enter the ERP world with little costs.  However, you must determine if the functionality provided by the SaaS ERP vendors suits your needs.  Remember, the type of technology you go with for your ERP solution is only one small decision.  There are many things to consider when deciding upon which ERP product to implement.

Written by :

kristine H