Well-established businesses are often slow to adopt new technology. After all, if something is not broken, why fix it? In a troubled economy, however, even the most stubborn of business executives are looking for ways to cut spending, reduce consumption, and find ways to lessen the sting of software and hardware investments.
The technology behind enterprise resource planning (ERP) software has evolved to meet these modern needs, and the days of a business needing to purchase “big iron” (large servers hungry for electricity) and large sum per-seat licenses for business management software may soon be over. For that to occur, they must be willing to open their minds to the concept of software as a service (SaaS).
SaaS ERP eliminates two hurdles that may prevent a company from an initial ERP purchase or a future upgrade: expensive hardware and large investments for software. SaaS provides customers with new model, often subscription-based, where the ERP system is hosted off-site in the cloud. The vendor provides access to it as a service for a specified period of time. There is no need to buy a server or maintain complex IT infrastructure, as one would with on-premise ERP systems.
With such enticing benefits, one may wonder why,according to Forrester Research, only 2 percent of global ERP revenue comes from the SaaS licensing model. Much of the reluctance stems from misconceptions, such as the belief that cloud technology is less secure than on-premise solutions where you have full control. For proof against that belief, one need only look at the robust and highly fortified network that Microsoft has created for hosting its cloud services. You can find a list of Microsoft partners that offer hosting services on the ERP Software Blog Hosting Provider Directory.
Ultimately, businesses will come around and see the benefits of SaaS ERP offerings. Getting started now will help your business get an edge over the competition. You should contact a Microsoft Partner to learn how.
To learn more about the costs of ERP Software in the Cloud download a new white paper 35 Questions Every CFO Needs to Ask about Cloud ERP Software. This white paper includes a sample cost comparison chart providing a simplified 5-year model to help CFOs evaluate ERP deployment models including: on-premises, on demand and hosted. Download the full white paper today at: www.erpsoftwareblog.com/cloud-erp.
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