ERP

ERP Comparison

ERP comparison should be done by a company before buying an ERP software solution. Enterprise resource planning software consists of applications capable of integrating all the varied data sources and differing processes operated by a business into one, information-sharing, combined system. ERP software systems are purchased for a variety of reasons such as to replace outdate legacy systems intended to reduce costs and increase profit. However, with so many vendors designing ERP software, businesses need to see what is available and what will best fit.

Which then is the top ERP for your business?  The answer is not simple because what is best for one business may not work for another of a different size in a different industry. In addition, it is important to note that choosing the right ERP is not simply about the vendor.

The process of ERP comparison nowadays cannot be considered complete without a comparison of delivery models. Four major methods of delivery are available, but not all vendors support all four options. As a result, the ERP software system a business chooses may be based on the delivery model it prefers.

Comparing delivery options should take the business’ existing infrastructure into account. For example, the size of the IT staff, the strength and reliability of the network, the geographical locations of the client computers, as well as other software being used.

The traditional model being used by most companies that use ERP software is the On-Premise model which is a one-time purchase from a vendor.  The software is them implemented at the site of the customer’s business.

Some businesses do not have, or even want, an in-house server on which to install a large system. These businesses will choose the Hosted delivery model. This means that after the ERP software is purchased, a third party has to allow the business to use its server.  The customer owns the software system, but the vendor manages and maintains it for a monthly service charge.

A third model of delivery is called Public Cloud. A Public Cloud solution is owned by the seller of the software. It is also operated by the seller. Businesses that choose this model pay a monthly subscription instead of licensing the ERP software, and are therefore considered subscribers to a service.

Private Cloud operates on the same basic tenets as Public Cloud except it is hosted on site. Often, the vendor will manage, maintain, and update the server from a remote location. Businesses that choose this model of delivery are able to customize while still keeping the advantages of an SaaS solution.

Written by :

Amy Cruz