ERP Software

Enterprise Resource Planning Software as a Service

Enterprise resource planning software as a service, also called SaaS, is a form of outsourcing, hosting or application management that allows a business owner or CIO to take advantage of ERP services without the cost and difficulty associated with purchasing and maintaining a complete ERP software infrastructure, which can involve a single or multi-tier server architecture and the employment of a full time IT staff to support it. Enterprise resource planning software as a service is becoming increasingly popular as ERP systems implementations have led to increased revenues and streamlined back office business functions among some companies, inspiring others to follow suit. In the current economic climate, since many companies can’t afford complete architectures but still want the benefits of integrated business solutions, enterprise resource planning software as a service models are providing a popular alternative. Also, smaller businesses have seen the advantages that large fortune 500 firms have gained from ERP implementations and would like to install ERP systems of their own, but complete systems still lie beyond the restrictive budgets of smaller companies and start-ups. Still, a streamlined ERP platform can help a business stay afloat during poor market conditions and can also keep a business ahead of its competitors as market conditions improve. So some small businesses are turning to hosting, outsourcing and management services instead.

These enterprise resource planning software as a service providers can allow a business access to a shared server infrastructure whereby it can run business related applications to facilitate accounting, payroll and human resource functions. The hosting service can also offer server maintenance services, data housing and back-up features, and other services that would be cost prohibitive if a small business tried to implement its own system.

Enterprise resource planning software as a service providers are now in search of partnering opportunities with large ERP vendors and providers like Microsoft, Oracle and SAP. If a large provider, like SAP, partners with a hosting solution like SunGard, then both companies can profit from the growing demand for ERP systems among small business owners. SAP can make inroads into small business market share, which is beneficial now that most large businesses that want ERP systems have implemented them. If SAP partners with a hosting solution, small businesses can pay for SAP product suites and applications without exceeding their software budgets. And as a hosting service, SunGard can gain more clientele if it can promise access to SAP applications and products. These partnerships also benefit small business owners as well, since they can gain access to business management tools that would otherwise remain out of reach. The future of these partnerships appears promising as competition increases for access to potential small business clients.

Written by :

tracey boxer