Why Are ERP Companies Moving to SaaS ?

💼 Why ERP Vendors Love SaaS

Here’s the inside truth: SaaS isn’t just a software model — it’s a business model.

It brings many financial and operational advantages to software companies. Let’s break them down:

💸 1. Stable Monthly Income

Unlike traditional software where the vendor earns once, SaaS gives them steady monthly or yearly revenue.

1. It’s predictable.
2. It increases their company valuation.
3. Even if you don’t use it regularly, you’re still billed every cycle.

👉 For vendors, it’s like earning rent on the same house forever.

🔄 2. Easier to Maintain

In SaaS, all users run the same version of the software on the same cloud environment. That means:

1. No need to support multiple versions
2. Easy to fix bugs once
3. Easy to roll out updates to all users

From the vendor’s side, it’s simple and cost-effective.

⛓️ 3. Customer Lock-In

One of the biggest secrets behind SaaS growth: you’re stuck.

1. You don’t have access to the full database
2. You can’t take easy backups
3. You can’t shift to another software without major disruption

So even if you’re unhappy or outgrowing the system, you often continue paying because it’s hard to move.

🛠️ 4. Limited Customization = Easier Life for Vendor

SaaS providers control the features and customization levels. This means:

1. No deep modifications possible
2. Only standard workflows allowed
3. Your industry-specific needs might not be fulfilled

For the vendor, this reduces development and support time.

For you, it means compromising on fit and flexibility.

🤷 So, Who Really Benefits?

Let’s be honest — SaaS ERP systems are more profitable and easier to manage for vendors.

But what about you, the customer?

If your business is:

1. Growing fast
2. Needs process flexibility
3. Wants full data control
4. Has multiple users and complex workflows

…then SaaS might not be the right fit for you.

You’ll end up paying more, getting less control, and facing roadblocks when you try to scale or integrate new features.

✅ Smarter Alternative: Own Your ERP

Instead of renting software forever, why not own it?

With open-source and self-hosted ERP platforms like ERPNext, you get:

1. Full control over data and features
2. Unlimited users (no per-seat cost)
3. Freedom to customize
4. Low lifetime cost

At Thirvu Soft, we help SMEs like yours implement ERP systems that are tailored, flexible, and truly yours — no subscription traps.

🔚 Final Thoughts:

SaaS is not a bad model — but it’s not for everyone.

Before jumping into the subscription race, ask:

1. “Is this ERP model giving me long-term value?”
2. “Do I want to rent software forever or build something I own?”

👉 Tomorrow’s blog will show you the dark side of SaaS from a user perspective — the most common pain points real businesses face.

📞 Need help choosing the right ERP model?

Visit: www.thirvusoft.com

📲 Or ping me directly!