{"id":1726,"date":"2010-12-03T07:00:25","date_gmt":"2010-12-03T15:00:25","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=1726"},"modified":"2010-12-03T07:00:25","modified_gmt":"2010-12-03T15:00:25","slug":"saas-and-erp-tearing-down-the-walls-of-on-premise-erp","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/saas-and-erp-tearing-down-the-walls-of-on-premise-erp\/","title":{"rendered":"SaaS and ERP: Tearing Down the Walls of On-Premise ERP"},"content":{"rendered":"

In the world of SaaS applications ERP has been a laggard. \u00a0ERP solutions have typically been been built with very expensive and highly customized software, while SaaS applications have been at the other end of the price spectrum and while they are often built to have some amount of configuration flexibility, they typically have been one-side-fits-all applications.<\/p>\n

Things are beginning to change. \u00a0SaaS-based ERP is no longer an oxymoron. \u00a0A report from the Aberdeen group<\/a> found that 39 percent of companies now are considering the viability of using a SaaS-based ERP system. \u00a0Between 2009 and 2010, that number has group by nearly two-thirds. \u00a0The benefit most frequently cited by those interested in SaaS is the lower total cost of ownership (TCO) and savings from reduced internal investment in IT. \u00a0Interestingly, and not too surprisingly, the popularity of SaaS has come at the expense on-premise ERP. \u00a0In fact, the number has dropped 18 percent over the last year.<\/p>\n

So, the interest is there. \u00a0But customers still haven’t made the leap. \u00a02011 looks like it could be the watershed year when SaaS ERP will take off, but then again, \u00a0it could turn out to be just a bust, hampered by worries around security and loss of control. \u00a0SaaS ERP vendors must do all they can to convince customers that they can protect their data assets before any mass move to the cloud can begin to happen. \u00a0That will be a tough sales job, but it is beginning to look like it is more of a question of when it will happen then if it will happen.<\/p>\n

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In the world of SaaS applications ERP has been a laggard. \u00a0ERP solutions have typically been been built with very expensive and highly customized software, while SaaS applications have been at the other end of the price spectrum and while…<\/span><\/p>\n

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