This comes with many benefits. In this guide, you’ll learn the features and benefits of SaaS ERP – and how to find the right one for you.
What is software-as-a-service enterprise resource planning?
Software-as-a-service enterprise resource planning is a business management system users access through their web browsers. The software vendor hosts and maintains the software, eliminating the need to manage your IT infrastructure.
Cloud computing and SaaS models are changing how companies approach ERP. By moving to the cloud, your business can reduce technology overhead and see quicker returns on your investment. This shift makes ERP software more accessible and cost-effective for many organisations.
Use cases of SaaS ERP
The use cases of SaaS ERPs extend across your business. Because a SaaS ERP is hosted in the cloud, your teams can access the business data and functionality they need over the internet and from any device.
MYOB Acumatica has product capabilities across finance, people, sales, supply chain, field services and more. This means its use cases include finance and business management, as well as payroll and workforce management.
MYOB Acumatica is also available in industry-specific editions for specialised use cases. These industries include construction, manufacturing, wholesale distribution and professional services. With an integrated SaaS ERP, you can complete tasks and activities in real time, so your data is always up to date.
Features and advantages of SaaS ERP
The features and advantages of SaaS ERPs include:
Fast deployment and implementation
Fast to deploy and implement, a SaaS ERP system delivers a shorter time to value and a stronger, faster return on investment.
Automatic upgrades by vendor
Automatic upgrades by the vendor mean that your users instantly get access to new features when a new version is released. This automatic updating is a key advantage of SaaS, saving your business time and money.
Lower upfront costs
You’ll have lower upfront costs on set-up and hardware because the vendor hosts the software, not you.
Scalability
The scalability of SaaS ERP systems can be a significant advantage for your growing business. Cloud-based ERP software can easily scale to meet demand, allowing your ERP system to grow seamlessly alongside your business. With a SaaS ERP, you only pay for the use you need.
Disadvantages of SaaS ERP
Disadvantages of SaaS ERPs include:
Ongoing costs can increase quickly as more users are added
Ongoing costs associated with a SaaS ERP will increase as you add more users. However, for most mid-size enterprises, the cost of a SaaS ERP is rarely higher than buying on-premise software. This is because you need less ongoing in-house IT support and avoid upfront infrastructure costs.
Less customisation flexibility
Less customisation flexibility can be an issue. However, while most SaaS ERP systems are “off-the-shelf,” they can be customised by integrating third-party apps.
Tip: MYOB Acumatica is a cloud ERP you can customise with hundreds of existing integrations. These third-party apps are best-in-breed, letting you tailor the functionality of your business management platform to perfectly suit your operations.
Security and data privacy risks
Security and data privacy risks of modern SaaS ERPs are generally overstated. Your information is stored on the cloud service provider’s servers (for example: Microsoft Azure, Amazon Web Services, Google Cloud). It’s their business to keep your data safe, and they have extensive resources and world-leading technologies to do so.
Tip: Look for ERP providers committed to the highest security standards.
MYOB, for example, follows security best practices, complying with the ISO 31000 Risk Management Standard. Our security controls also follow the ISO 27001 Information Security Management Standard.
We use secured encrypted channels, work with only world-class partners, such as Microsoft Azure and Amazon Web Services and have a dedicated internal security team. External security experts independently test these measures.
SaaS ERP vs cloud ERP
SaaS ERP and cloud ERP are often used interchangeably, but they describe different elements of a modern software platform. Cloud ERP describes where your ERP software is hosted – in the cloud rather than on your on-site server. SaaS ERP describes how you access, manage and pay for your ERP software.
With a SaaS ERP, the software company maintains and upgrades the software, develops new features and pushes them out to all customers at once. Under this model, you’re one of multiple businesses (tenants) using the software and sharing the resources.
In contrast, you could have a single-tenant cloud ERP deployment. In this model, the customer manages their own instance of the software in a cloud environment. This can mean more security and control for the customer, but it costs more and requires more management than multi-tenant solutions.
SaaS ERP vs on-premises ERP
As opposed to an on-premise ERP, a SaaS ERP shifts the software and data management responsibility from your team to the ERP provider. This approach reduces expenses associated with on-premises systems, particularly the need for a dedicated IT team and expensive hardware. The trade-off is that businesses may have less direct control over their ERP system and data compared to on-premises solutions.
How much does SaaS ERP cost?
The cost of SaaS ERP can vary widely. As a guide, small and medium-sized businesses can expect to pay $30,000 or more, while large enterprises can expect to pay between $1 million and $10 million.
Cloud-based ERP systems usually have lower initial costs compared to on-premises solutions. This is because they don’t require hardware or large IT infrastructure investments. Instead, you pay regular subscription fees, often monthly or annually. This payment model makes budgeting more predictable and spreads the cost over time.
SaaS ERP FAQs
What is the difference between SaaS and SaaP?
The difference between SaaS (Software as a Service) and SaaP (Software as a Product) is that SaaS operates on a subscription model, while SaaP is purchased outright as a product and typically installed and run on the user’s hardware.
With a SaaS ERP, you typically pay monthly or yearly fees to access the software — upgrades are included in the cost. With SaaP, the user owns the software and takes care of maintenance, upgrades and infrastructure. It generally requires a higher upfront cost and more in-house resources for management.
What is a hybrid ERP system?
Hybrid ERP systems combine on-site and cloud-based components. Perhaps you want extra control over highly sensitive information or have legacy on-premise software that still works well. In these cases, it may suit you to host some functions and data in the cloud while keeping some on your own server.
How does an ERP differ from a CRM?
ERP differs from CRM in the type of operations it supports. ERP systems support and connect back-office functions like HR, finance and supply chain management. Integrated CRM systems support and connect front-office functions such as customer service, sales, marketing and advertising. However, many ERP platforms, such as MYOB Acumatica, also include CRM functionality.
Choosing the right cloud ERP system for your business
In many industries, cloud ERP has become the standard for connecting users and data across your business. This full integration is the foundation for business-boosting outcomes – unmatched efficiency from automated workflows, operational visibility and faster growth with real-time reporting and business intelligence.
MYOB Acumatica’s exceptional usability promotes productivity, streamlines workflows and encourages collaboration. It’s also scalable — pay for the functionality and user numbers you need now and add more as you go.
Learn how MYOB’s cloud ERP software can help your business reach the next growth stage — speak to an expert today.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.