What is SaaS ERP? And Why Everyone is Talking About It
Understand what SaaS ERP really means, how it works, and why businesses are shifting to it. A must-read before you choose your next ERP system.
📦 What Exactly is SaaS?
SaaS stands for Software as a Service. Instead of buying software and installing it on your own server or computer, you access it via the internet. You usually pay a monthly or yearly subscription fee, and the software is hosted, maintained, and updated by the provider.
Think of it like watching movies on Netflix instead of buying DVDs — you don’t own the software, but you get access to it for as long as you keep paying.
🌐 How Does SaaS ERP Work?
When it comes to ERP (Enterprise Resource Planning), SaaS means:
- You log in through a web browser
- The ERP is hosted on the vendor’s cloud
- You don’t manage servers, backups, or updates — it’s all handled by the provider
- You pay per user, per month (or based on features/modules)
Examples include:
- Zoho ERP
- TallyPrime Cloud
- SAP Business One Cloud
- QuickBooks Online
- NetSuite
🧠 A Simple Analogy – Renting vs Owning a House
Let’s make it even simpler.
| FactorSaaS ERPTraditional ERP (like ERPNext self-hosted) | ||
| Ownership | Like renting a house | Like buying your own home |
| Monthly fees | Yes, recurring | Mostly one-time setup |
| Control | Limited | Full |
| Customization | Very limited | Fully flexible |
| Data access | Depends on provider | You own and control it |
| Internet required | Always | Optional (for on-premise) |
So before you commit to a SaaS ERP, ask yourself — do you want to rent forever or build something of your own?
🔚 What’s Next?
Now that you know what SaaS ERP is and how it works, tomorrow’s blog will answer:
👉 “Why are ERP companies shifting to the SaaS model so aggressively?”
Hint: it’s more about their benefit than yours!
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