ERP Service

Enterprise resource planning (ERP) systems, typically large, enterprise-wide systems that incorporate multiple spheres of business including CRM, finance, accounting, and management information, are often costly to purchase and implement, often taking several months or even years to fully integrate into a company. There is no disputing the potential benefit of an ERP system, but the cost can be prohibitive, and the failure rate high.

ERP as a service however, is growing in popularity and overcomes many of these potential drawbacks. An innovation in the software applications field, ERP Service has transformed the way business is done because it maximizes efficiency and the potential for profitability.

With ERP service, companies no longer need on-premise computer hardware and software.  Instead, companies can store electronic data on remote (off-premises) servers, and can easily recall data from those servers via a hosted Internet delivery system available through a paid subscription. This software delivery model enables companies to utilize new ERP solutions without too much complex implementation --- and without substantial costs.

ERP systems are usually categorized as SaaS (Software-as-a-Service) if they have browser-based business applications, are hosted remotely over the Internet, and are provided through a subscription model of payment. As a result, smaller organizations are now starting to embrace all-encompassing ERP systems, giving vendors a substantial new market. The subscription pricing model has proved to be a boon, especially for small to medium-sized businesses which usually cannot afford too to spend a lot of money on infrastructure.

There are several other benefits of using an ERP service.

Total Cost of Ownership

The Total Cost of Ownership (TCO) for ERP services are usually lower than on-premise systems, according to forecasts formulated by reliable analysts, such as IDC, Aberdeen, and Forrester.

Implementation Timeframe

ERP service does not require on-premise installation of software, hardware and other infrastructure. Therefore, ERP system implementation is usually done quickly.  The system is usually up and running soon thereafter.

Advantage of Outsourcing

One of the biggest advantages of ERP systems is that the care and maintenance of the system, and related business applications, is outsourced to those who have the necessary expertise. This enables the internal IT department to concentrate on other important tasks. All of this translates into streamlined and efficient business operations without much additional cost or infrastructure.

Hosted Software Delivery

Most ERP service providers are well-equipped to offer the best and most reliable hosted software delivery. They usually guarantee access and backup on an “anytime, anywhere” basis with a Service Level Agreement (SLA). The SLA provides for certain financial penalties if there are any system breakdowns. The ERP browser-based system allows employees to access the system from multiple locations, home offices, and even while travelling. The SaaS model also enables upgrades when needed. This is done without any additional hardware or bandwidth purchase by the company.

Pay as You Go & Subscription Pricing

The “pay-as-you-go” pricing system allows business managers to pay for what data storage space and related services are needed and used.  This pricing system ensures optimum utilization of the ERP service offered. Subscription pricing also enables future financial planning and payment schedules --- and dispenses with the cost overruns incurred for on-premise ERP systems.