Cloud Computing Vs SaaS

In terms of performance, the differences between cloud and SaaS platforms are slim, so are there discernible advantages which you should consider before making a long-term investment in an ERP solution?

Cloud-Based Software

Cloud-based software is hosted offsite on a server owned by a software service provider and accessed on individual devices via the internet. All that is required is an internet connection and a web browser (on a desktop PC, laptop, or mobile device). Cloud computing makes resources available to multiple users on multiple devices, without the need for on-premise hosting.

An example of a Cloud ERP is a software product hosted by a vendor offsite but purchased through a one-off licence fee rather than a subscription. The difference between this option and a traditional software product is simply one of hosting – whether on a customer-owned server or a third-party machine. (There may be a nominal ongoing hosting fee, and maintenance and upgrades may incur an extra charge.)

• With Cloud-based software, you have the freedom to customise or manage the application even if it’s stored on a third-party server. This enables you to modify the software to meet your business’s unique needs, as you would with a locally installed platform.
• You may be responsible for maintaining the software, for example to install updates or security patches.

SaaS Software

Software as a Service (SaaS) is a method for delivering Cloud-based applications which are licenced by a software provider to a named user. The software is accessed and managed via the internet in the same way as Cloud-based apps and is licenced through a monthly subscription. A business chooses the level of service it requires and the number of users, so the SaaS provider can ensure the application meets their needs accordingly.

An SaaS ERP is not a product but a service. The customer never owns the software, rather it is provided as a package to the customer in exchange for a subscription fee, which also covers hosting, technical support, updates, and data backups.

• SaaS software is delivered ready-to-use, so implementation is usually quick. However, because the software is already configured, you don’t always have the ability to customise it extensively.
• All maintenance issues are handled by the provider, so you can be confident that you’re always working with the most up-to-date version.