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How do SaaS ERP and Cloud ERP differ?

How do SaaS ERP and Cloud ERP differ?

by Mastersoft Erp solution

How do SaaS ERP and Cloud ERP differ?

Organisations in different sectors aim to accelerate their operations, and the best way to do it is via appropriate technological integration. Therefore, it is not much of a surprise to see the increase in demand for ERP solutions; ERP or enterprise resource planning software has become one of the sought-after tools that businesses have been using for their day-to-day activities.

Therefore, take a look at the following in-detailed explanation of SaaS ERP and Cloud ERP and the difference between them: 

What is a cloud-based ERP? 

The ERP solutions hosted in the cloud technology are cloud-based ERP, which provides a customisable, flexible and more budget-friendly solution.Moreover, they can integrate tools like education management information systems with the software and easily streamline the institutional data. 

Some of the noteworthy features include: 

  • A centralised data system enabled by cloud technology helps stakeholders to access information easily.
  • It helps the admin streamline information about different curricular and co-curricular activities throughout the academic year.
  • Fees management can become far more efficient with the help of cloud technology as it allows for the easy online payment of fees. Also, the account management feature ensures the generation of invoices and keeps a record of them for future audit purposes. 
  • It is an effective business analytic tool that helps to create decision-making reports, thereby helping to make informed decisions. 

What is SaaS ERP? 

SaaS, an acronym for Software for Service, is a service-based ERP solution included within the cloud technology that runs on multi-tenant SaaS architecture. Although hosted remotely, an institute’s internal team, including the administrative department, can access the system from a remote location. 

Some noteworthy features include: 

  • SaaS has high levels of data security that ensure unauthorised personnel can’t gain access to confidential information. 
  • Organisations can choose from the single code base or prepackaged specialised applications.
  • Vendors are responsible for regular updates and maintenance that help to establish system security, lower IT costs, and protect the ERP system from threats and crashes.

Critical differences between Cloud ERP and SaaS ERP

                          Cloud ERP                     SaaS ERP
With the cloud ERP, remote servers manage the software; companies pay vendors for functionality purposes. SaaS ERP is sold on a monthly based per user subscription and distributed as a service through the internet. 
Cloud ERP has prominent customisation features; for instance, HEIs can integrate tools such as campus management systems to improve various administrative activities.  SaaS-based ERP services provide standardised features; therefore, organisations can’t add or deduct any features. However, the single tenant mode of SaaS enables customisation. 
Organisations which have diverse operational needs can go for cloud ERP. As it provides customisable features, it is far more scalable and flexible.  SaaS ERP is a perfect solution for those who don’t require elaborate customisation features. 
Companies looking to shift from on-premise ERP solutions can choose Cloud ERP, which provides efficient remote vendor services.  Companies looking for quick ERP implementation can go for a SaaS ERP solution. It provides a low initial cost and runs on a vendor’s servers, and the vendor updates the software, typically on a quarterly basis.

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