What is the difference between an ERP Saas and an ERP On Premise? In the following blog, we explain how each modality works, we will tell you about its pros and cons so that you can make the best decision.
Choosing the right enterprise resource planning (ERP) for your company should not be taken lightly. You must choose a software that is best suited to your current and future needs.
You must analyze the flexibility of each of them, as well as the scalability, usability, price, and technical factors, as well as the nature of the code if it will be Open Source or Close code. A very important factor to take into account is to think about whether you want it to be installed on your servers (On Premise model) or on a Cloud server (SaaS model). Have you thought about that? Below we share the benefits and differences of each one.
SaaS model
A SaaS (Software as a Service) is an online software service in which you can access through a web browser from any device and even anywhere in the world. The companies that use this model pay their license either monthly or annually depending on the active users of the company.
There are different ERP SaaS software on the market, among the best known are Netsuite, Dynamics 365, and Infor, there is also Odoo SaaS a very intuitive ERP that allows you to create instances quickly and easily.
On Premise Model
The On Premise model is installed on the company's servers and technological devices, therefore maintenance, updates, security, backup, among other things, are entirely the responsibility of the client's infrastructure, everything falls on its IT area.
ERP On Premise allows for greater customization according to the needs of your company, updates are carried out when the client deems them necessary and there is total control of the information and infrastructure.
ERP SaaS vs. ERP On Premise
Personalization
SaaS: In this model, customization is not accessible as in an On Premise because your company does not have any access to the code thus editing according to your needs is not an option.
On Premise: You will be able to have the option to customize it according to the needs of your company, one of the great advantages is that the software can be adapted to the processes of your company and not your company to the processes requested by the software.
Security of the information
SaaS: Your information is backed up in the cloud, the provider is responsible for storing it and maintaining it.
On Premise: You will know with total security that the data will be stored only in your company without going through third parties, but you will have to take care of storing it, taking care of it, and generating security backups.
Implementation
SaaS: he implementation depends on the data you are going to migrate, an example would be your database, but it is still faster since there is no need to install anything locally.
On Premise: The implementation also depends on the information that will be migrated to your local servers.
Technical assistance
SaaS: In this model, you should not worry about hiring a systems expert to maintain it or if an infrastructure error arises, the provider will take care of solving it, if there is an error it is a matter of creating a ticket so that they can find a solution.
On Premise: In this case, you will have to hire a systems expert to help you solve the infrastructure problems that arise, the ERP provider will not be responsible (except in some cases where you pay for the assistance service).
Licensing per user
SaaS: he licensing for use of the software is per user, the more users you have, the higher the cost, but it is the only thing you pay for to be able to use the software. In the case of Odoo, when you pay for the license, you receive various benefits such as the infrastructure in the cloud, includes the server, daily backups, and a control center to manage everything.
On Premise: In an On Premise, a license is paid for its use, in most cases, it is paid only once and has a high cost.
Upgrades
SaaS: The updates go by the provider and you will not have to take care of anything.
On Premise: In the case of looking to update your ERP, you will have to cover the costs of updating and implementation, in addition to having a systems expert to help you with everything that is required.
Costs
SaaS: The price of these services is usually cheaper and you only pay for the use made of the service, it is a good model to start using an ERP.
On Premise: The price is higher considering that hardware, licensing, and maintenance are needed, but it is a much cheaper option in the long term, in an ERP this option is convenient when looking for scalability and adaptation to the system.
After reading this blog, we recommend that you carefully weigh the pros and cons of both options before making a final decision.
The choice between a SaaS ERP or an ERP On Premise must match the company and the objectives it has, understand its needs, and verify if the processes and the project are in an initial stage and an ERP SaaS is the best option or if it is ready to adopt an ERP On Premise because the company is growing.