This report from Aberdeen
states that the gap between using on-premise ERP solutions and Software-as-a-Service (SaaS) solutions are shrinking. Survey results show that companies who uses a SaaS solution takes fewer days to close a month, have higher inventory accuracy and provides reduction in operational costs compared to on-premise ERP.
Although SaaS solutions, such as cloud, may be easier to implement and cheaper to pay for, it may be less flexible for customization and may force upgrades. While on-premise ERP solutions cost a lot more up front, takes longer to implement, it offers more customization and control over the upgrade process.
Answer these questions before deciding on the ERP strategy:
- Does the system have the functionality you need?
- Is your organization distributed globally?
- Do you believe that security is a concern?
- How much time do you have?
- How are you paying for this?