How is saas different from cloud erp

How is SaaS Different from Cloud ERP

An Overview • • • • • • • • • •

ERP in modern times Cloud ERP Cloud ERP for small businesses Software as a service (SaaS) SaaS for small businesses SaaS characteristics Benefits of SaaS Difference between Cloud ERP and SaaS Model Is SaaS the solution for your business?

Conclusion

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ERP in Modern Times  With change in technology over the years, ERP software too have evolved and become compatible to the needs of modern-day businesses  Breakthrough success in areas such as cloud computing, and SaaS-based services has meant that the companies these days get increased functionality at a lower cost from the ERP vendors  This has also opened the doors of contemporary ERP systems for business of all sizes, including small enterprises  Modern ERP solutions have made small businesses battle-ready to take on competition and venture into markets earlier dominated by big companies  With modern ERP’s benefits like streamlined operations, improved productivity & efficiency, effective R&D and product development, access to real-time data etc., the small businesses are thriving

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Cloud ERP  Cloud ERP is hosted on vendor’s servers and consists of infrastructure and services that you can rent such as servers, data storage capacity, communications and messaging capacity, and network capacity  The software and its data is managed centrally at a remote datacenter (Internet "cloud") by the ERP vendor  Data can be accessed by customers through a web browser, from anywhere and anytime using any device  Cloud ERP is cost-effective as the maintenance and support costs get eliminated with the support being provided from remote data center. Customers can pay only for what they use through easy monthly subscription  With Cloud ERP, the firms also have the benefit of secured data with back-up since it is not stored on their servers locally  With Cloud ERP, customers have full control over the software, while in SaaS model vendor has the control

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Cloud ERP for small businesses Cloud ERP is a one-stop solution for small businesses. Listed below are some of the reasons that convinces small business owners to raise their hands for a cloud ERP:  Cost: -

Avoids upfront costs for all computing infrastructure Reduces need of IT support services Eliminates the need to pay additionally for application software licenses in favor of a monthly fee No recovery and backup costs Supports free and automatic updates

 Deployment: - Installed on the vendor server and accessed over the internet through any web browser - No installation on client’s machine - Saves time & reduces installation complexities

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Cloud ERP for small businesses  Implementation: - Less implementation time helps in faster ROI generation - Hosted on vendor server  Maintenance: - Shrinks the cost of software maintenance and support, as ERP vendor handles the upgrades and backups  Continued Support: - Offers 24x7 support - Cloud ERP Vendor fixes the problem faster; thus saving time for more productive works

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Software as a Service (SaaS)

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 SaaS specifically refers to software that is delivered on-demand over a network  It is a software licensing and delivery model in which software is licensed to a user and accessed through internet by any web browser  The user does not need to install and maintain the software, as the application runs on the servers and datacenter of the SaaS provider  The third-party vendor is responsible for the security, performance, and maintenance of the application on their servers  Provides facility on monthly subscription basis, therefore cost is based on service level and number of users  Assures regular data backup and disaster recovery plan. Offers scalability and flexibility to organizations with limited size  SaaS applications run ‘in the cloud’, but they are not the cloud

SaaS for small businesses SMEs get the following benefits after opting for SaaS business model: 

Easy access to sophisticated applications:

- No investment required for acquiring the hardware or software tools - Helps small organizations to afford IT infrastructure for their business management

 Ease of paying as per usage: - Automatically scales up and down according to the level of usage, just pay as you use  Use free client software:

- Run most apps directly from web browser without downloading them - Eliminates the need to install any software on machine

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SaaS for small businesses 

Mobilization of workforce:

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Mobilizes workforce by providing real-time access from any location and any internet-enabled device Service provider sorts out all issues and bugs of the software Ensures smooth functioning of the software

 Access app data from anywhere: - Data gets stored on the cloud, users can access information from any device - When data is stored on the cloud, no data is ever lost even if user’s computer or device fails

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SaaS characteristics  Multi tenant architecture

 Easy customization  Real-time data access flexibility  Harnesses web interface  Scalability  Seamless integration  Pay as you go ahead  Vendor takes authority for upgrades, uptime and security

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Benefits of SaaS When ERP is delivered in a SaaS model, businesses flourish tremendously.

Let us take a look at the advantages delivered by SaaS solutions:  Lower total cost of ownership: - Reduces cost of purchasing software licenses, installing hardware, and setting up the network - Lowers expenses of maintaining IT infrastructure - Pay as you use the software  Lower risk of deployment: - Minimal implementation risks - Advanced security features - Less chances of project failure

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Benefits of SaaS  Easy Accessibility: - Allows access from different location - Virtual environment allows user to have real-time information - Integrates all global operations and brings them on a single platform 

Fast Upgrades:

- Eliminates issues of being stuck with an outdated software system - Ensures continuous upgrades of the software to latest versions - Allows user flexibility to customize the system according to unique business needs  Enhanced Security:

- Ensures data safety by using right tools and testing all the vulnerabilities

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Benefits of SaaS  Support: - Provides round the clock support to the customers - No extra expenditure to avail support services - Support covers: answering queries, resolving issues, bug fixing and software upgrades  Ease of management: - Applications are completely managed by the SaaS ERP vendor - Service-level agreements (SLAs) govern the quality, availability, and support commitments to the customer  Cross-device compatibility: - Ideal for those who use a different device such as mobile phones, laptops, tablets, or PCs

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Difference between Cloud ERP and SaaS Model

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 With Cloud ERP, a user is able to customize and manage an application on a server that is hosted by a third-party. You are given access to your data on those servers via the internet  With SaaS, you pay a subscription to access an already developed software application via a web browser. You don’t have the responsibility of maintaining the software. You lose some control over the management and customization of the application  SaaS can be referred as a subset of Cloud ERP.  They are quite similar and often used interchangeably

Difference between Cloud ERP and SaaS Model

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I. On the basis of scope:  Cloud ERP system is an ERP software with off site hosting solution which is scalable, flexible and capable to access real time-data for industry of any size  SaaS offerings, on the other hand, are comparatively smaller and best suitable for the organizations having limited operations, size and global presence

II. On the basis of payment methods:  For purchasing Cloud ERP, you pay for the complete software  While opting for ERP with SaaS, you pay as you use the applications

Difference between Cloud ERP and SaaS Model III. On the basis of acquisition:  A Cloud ERP system is purchased and acquired from an ERP vendor for use  SaaS ERP is rented or borrowed through internet on subscription basis and used according to the need

IV. On the basis of hosting and control:  Cloud ERP system controls your data and your application through server with full control over application.

Customer has full control over the software  Only vendor has full control over the application, as they host SaaS on their own infrastructure instead of locating on-premise. Customer does not have full control over the application

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Is SaaS the solution for your business?

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Now that we know the basic differences and definitions of Cloud ERP and SaaS, we can say that:  With SaaS, businesses eliminate capital expense of IT infrastructure and invest in enhancing innovation to generate more revenue  With Internet connectivity at our fingertips, users can easily access the ERP application and data

 As technology improves, the infrastructure cost rises. Thus companies are adopting SaaS to reduce the cost incurred  With SaaS, you get: -

Cost reduction Better scalability Innovation Efficient planning

Conclusion

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 With Cloud ERP, you don’t have to host, maintain, or upgrade the servers. You have access to your data in real-time, whenever you need it. Costs are usually lower because you just pay to rent space on the hosted servers. You usually pay for a subscription to have access to your data. Cloud is computing infrastructure and services that you can rent.  SaaS is a cost-effective way to have real-time access to software whenever and wherever you have an internet connection. You don’t have to worry about server maintenance. Multiple users from 10 – 10,000 can access have to the same software. SaaS offerings are applications that are fully formed end-user applications.

We at BatchMaster, provide both SaaS-based as well as Cloud ERP solutions. We offer affordable monthly subscriptions, latest and automatic upgrades, 99.9% uptime assurance, absolute data security and work on pay as you use model

About BatchMaster

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 30+ years of experience

 7 offices around the globe

 ERP solutions for small to mid-sized industries

 Available in 3 languages- English, Chinese, and Spanish

 SAP B1 and Microsoft certified solution

 Original developer of formulation system in ERP

 Over 40,000 users worldwide

 Consistent record of never exceeding implementation time of 350 to 500 hours

 Headquartered in California, with footprints across the world  Global presence with offices in 3 continents - North America, Australia, and Asia

Resources

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• To know more on SaaS as a tool for small businesses, read our white-paper on A Small business guide on SaaS tool •

To find out the growth after cloud ERP gets implemented in your business, read our blog on Why cloud ERP is advisable for small businesses?

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To know what are the basics before your switch to a cloud ERP, go through the blog on 6 Questions to Ask Yourself Before Moving to Cloud ERP

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Also, To know how Cloud ERP helps in growing your business, read the blog on Thinking Business Growth with Low Investment? Think Cloud ERP!

• For more queries, Email us at : sales@batchmaster.com or visit us on : www.batchmaster.co.in