Distinguish, differentiate, compare and explain what is the difference between Saas and On-premise ERP.
Comparison and Difference between Saas and On-premise ERP
1. In terms of Purchasing Plan: Saas offer smaller recurring monthly fees. In On-premise ERP, one large lump payment is required.
2. In terms of Technical support: In Saas based system, technical support is available as long as the account is current. In On-premise ERP, technical support is available only under the provider’s terms for a limited specified amount of time.
3. In terms of Elasticity i.e. ability to expand services if suddenly necessary: Extremely offered in Saas based system. If your business suddenly needs more of a service, the provider is able to adjust services as necessary and instantly. On the other hand, in On-premise ERP expansion of the system is very limited. If your needs change to suddenly need more of a service, you must either purchase more of the same software or hope the provider comes out with an updated version.
4. In terms of Pool resourcing i.e. how many users can use a single software license): In Saas system, as many users as required that have access to the login information. In On-premise ERP, the software is licensed to a limited number of people and usually isn’t transferable.
5. In terms of Security: In Saas, the security of files is dependent upon the reliability of the service provider’s server’s abilities. On-premise ERP must be managed in-house by your own IT team and your company’s data security policies.