The SaaS-Based ERP Market
Updated · Apr 12, 2011
Until recently, the SaaS (Software-as-a-Service) based Enterprise Resource Planning (ERP) marketplace has witnessed small or medium-sized businesses as customers for on-demand or SaaS ERP as enterprise-level organizations have been reluctant to adopt the SaaS-based ERP. According to this report on SB Wire the increasing popularity of the SaaS-based applications account for the growth of ERP, as the enterprise resources are maintained by a service provider.
“Presently, the credit crunch and small & medium businesses are opting for SaaS- based ERP as a cost effective alternative by making installment based payments. Moreover, most of the IT companies are channelizing their product portfolio and introducing new service offerings. However, issues such as convincing customers about the benefits of SaaS model, handling integration & interface and security issues, etc. are required to be addressed by the SaaS-based ERP vendors.
“Till recently, the SaaS- based ERP marketplace has witnessed small or medium-sized businesses as customers for on-demand or SaaS ERP. On the other hand, the enterprise-level organizations have been reluctant to adopt the SaaS-based ERP. These enterprises are of the opinion that hosted or on-demand applications may not suit the complex sales processes or provide vertical functionality. However, the trend is changing with more number of enterprises finding more opportunities through SaaS deployments, irrespective of the size of their businesses.