6 Reasons Businesses are Choosing SaaS ERP

Grazed from Business2Community. Author: RJ Burgess.

There comes a point in the ERP selection process when it is time to take deployment model into consideration. There are several reasons why SaaS ERP often comes out on top based around the positive perceptions businesses have of its overall effectiveness. Specifically, a study conducted by The Aberdeen Group in October of last year (2012 ERP Benchmark survey) found six points that organizations consistently named as deciding factors in choosing SaaS ERP.

1. Lower Total Cost of Ownership
The top reason companies opted for SaaS ERP (cited by 82% of the 363 respondents) was a reduction in the total cost of ownership (TOC). While this was mainly because most SaaS ERP cloud hosting services are paid for on a subscription basis, there are other cost savings involved in this method of deployment that many businesses many not have considered…

The Aberdeen Group collected further data as part of their “ERP Selection: Finding the Right Fit” study to verify the TCO claim, among other perceptions of SaaS. It was found that organizations using SaaS ERP typically achieved ROI faster than companies with an on-premise ERP solution. With the SaaS model, ROI was achieved on average after just 23.61 months, while it took companies 31.09 months to achieve ROI when using on-premise implementations…

Read more from the source @ http://www.business2community.com/cloud-computing/6-reasons-businesses-are-choosing-saas-erp-0548321