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There a lot of confusion between a Cloud ERP and a SaaS-based ERP, so much so that most of the time they are used interchangeably. This presentation provides a comprehensive breakdown of both the terms along with their definition, benefits and differences in terms of scope, payment option, usability.

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how is saas different from cloud erp

How is SaaS

Different from

Cloud ERP



An Overview

• ERP in modern times

• Cloud ERP

• Cloud ERP for small businesses

• Software as a service (SaaS)

• SaaS for small businesses

• SaaS characteristics

• Benefits of SaaS

• Difference between Cloud ERP and SaaS Model

• Is SaaS the solution for your business?

• Conclusion



ERP in Modern Times

 With change in technology over the years, ERP software too have evolved and become compatible to the

needs of modern-day businesses

 Breakthrough success in areas such as cloud computing, and SaaS-based services has meant that the

companies these days get increased functionality at a lower cost from the ERP vendors

 This has also opened the doors of contemporary ERP systems for business of all sizes, including small


 Modern ERP solutions have made small businesses battle-ready to take on competition and venture into

markets earlier dominated by big companies

 With modern ERP’s benefits like streamlined operations, improved productivity & efficiency, effective R&D

and product development, access to real-time data etc., the small businesses are thriving



Cloud ERP

 Cloud ERP is hosted on vendor’s servers and consists of infrastructure and services that you can rent such as

servers, data storage capacity, communications and messaging capacity, and network capacity

 The software and its data is managed centrally at a remote datacenter (Internet "cloud") by the ERP vendor

 Data can be accessed by customers through a web browser, from anywhere and anytime using any device

 Cloud ERP is cost-effective as the maintenance and support costs get eliminated with the support being

provided from remote data center. Customers can pay only for what they use through easy monthly


 With Cloud ERP, the firms also have the benefit of secured data with back-up since it is not stored on their

servers locally

 With Cloud ERP, customers have full control over the software, while in SaaS model vendor has the control



Cloud ERP for small businesses

Cloud ERP is a one-stop solution for small businesses. Listed below are some of the reasons that convinces

small business owners to raise their hands for a cloud ERP:

 Cost:






Avoids upfront costs for all computing infrastructure

Reduces need of IT support services

Eliminates the need to pay additionally for application software licenses in favor of a monthly fee

No recovery and backup costs

Supports free and automatic updates

 Deployment:




Installed on the vendor server and accessed over the internet through any web browser

No installation on client’s machine

Saves time & reduces installation complexities



Cloud ERP for small businesses

 Implementation:



Less implementation time helps in faster ROI generation

Hosted on vendor server

 Maintenance:


Shrinks the cost of software maintenance and support, as ERP vendor handles the upgrades and backups

 Continued Support:



Offers 24x7 support

Cloud ERP Vendor fixes the problem faster; thus saving time for more productive works



Software as a Service (SaaS)

 SaaS specifically refers to software that is delivered on-demand over a network

 It is a software licensing and delivery model in which software is licensed to a user and accessed through internet

by any web browser

 The user does not need to install and maintain the software, as the application runs on the servers and datacenter

of the SaaS provider

 The third-party vendor is responsible for the security, performance, and maintenance of the application on their


 Provides facility on monthly subscription basis, therefore cost is based on service level and number of users

 Assures regular data backup and disaster recovery plan. Offers scalability and flexibility to organizations with

limited size

 SaaS applications run ‘in the cloud’, but they are not the cloud



SaaS for small businesses

SMEs get the following benefits after opting for SaaS business model:

Easy access to sophisticated applications:



No investment required for acquiring the hardware or software tools

Helps small organizations to afford IT infrastructure for their business management

 Ease of paying as per usage:


Automatically scales up and down according to the level of usage, just pay as you use

 Use free client software:



Run most apps directly from web browser without downloading them

Eliminates the need to install any software on machine



SaaS for small businesses

Mobilization of workforce:




Mobilizes workforce by providing real-time access from any location and any internet-enabled device

Service provider sorts out all issues and bugs of the software

Ensures smooth functioning of the software

 Access app data from anywhere:



Data gets stored on the cloud, users can access information from any device

When data is stored on the cloud, no data is ever lost even if user’s computer or device fails



SaaS characteristics

 Multi tenant architecture

 Easy customization

 Real-time data access flexibility

 Harnesses web interface

 Scalability

 Seamless integration

 Pay as you go ahead

 Vendor takes authority for upgrades, uptime and security



Benefits of SaaS

When ERP is delivered in a SaaS model, businesses flourish tremendously.

Let us take a look at the advantages delivered by SaaS solutions:

 Lower total cost of ownership:




Reduces cost of purchasing software licenses, installing hardware, and setting up the network

Lowers expenses of maintaining IT infrastructure

Pay as you use the software

 Lower risk of deployment:




Minimal implementation risks

Advanced security features

Less chances of project failure



Benefits of SaaS

 Easy Accessibility:




Allows access from different location

Virtual environment allows user to have real-time information

Integrates all global operations and brings them on a single platform

Fast Upgrades:




Eliminates issues of being stuck with an outdated software system

Ensures continuous upgrades of the software to latest versions

Allows user flexibility to customize the system according to unique business needs

 Enhanced Security:

- Ensures data safety by using right tools and testing all the vulnerabilities



Benefits of SaaS

 Support:




Provides round the clock support to the customers

No extra expenditure to avail support services

Support covers: answering queries, resolving issues, bug fixing and software upgrades

 Ease of management:



Applications are completely managed by the SaaS ERP vendor

Service-level agreements (SLAs) govern the quality, availability, and support commitments to the


 Cross-device compatibility:


Ideal for those who use a different device such as mobile phones, laptops, tablets, or PCs



Difference between Cloud ERP and SaaS Model

 With Cloud ERP, a user is able to customize and manage an application on a server that is hosted

by a third-party. You are given access to your data on those servers via the internet

 With SaaS, you pay a subscription to access an already developed software application via a web

browser. You don’t have the responsibility of maintaining the software. You lose some control

over the management and customization of the application

 SaaS can be referred as a subset of Cloud ERP.

 They are quite similar and often used interchangeably



Difference between Cloud ERP and SaaS Model

I. On the basis of scope:

 Cloud ERP system is an ERP software with off site hosting solution which is scalable, flexible and capable to

access real time-data for industry of any size

 SaaS offerings, on the other hand, are comparatively smaller and best suitable for the organizations having

limited operations, size and global presence

II. On the basis of payment methods:

 For purchasing Cloud ERP, you pay for the complete software

 While opting for ERP with SaaS, you pay as you use the applications



Difference between Cloud ERP and SaaS Model

III. On the basis of acquisition:

 A Cloud ERP system is purchased and acquired from an ERP vendor for use

 SaaS ERP is rented or borrowed through internet on subscription basis and used according to the need

IV. On the basis of hosting and control:

 Cloud ERP system controls your data and your application through server with full control over application.

Customer has full control over the software

 Only vendor has full control over the application, as they host SaaS on their own infrastructure instead of

locating on-premise. Customer does not have full control over the application

is saas the solution for your business

Is SaaS the solution for your business?


Now that we know the basic differences and definitions of Cloud ERP and SaaS, we can say that:

 With SaaS, businesses eliminate capital expense of IT infrastructure and invest in enhancing innovation to

generate more revenue

 With Internet connectivity at our fingertips, users can easily access the ERP application and data

 As technology improves, the infrastructure cost rises. Thus companies are adopting SaaS to reduce the cost


 With SaaS, you get:





Cost reduction

Better scalability


Efficient planning




 With Cloud ERP, you don’t have to host, maintain, or upgrade the servers. You have access to your data in

real-time, whenever you need it. Costs are usually lower because you just pay to rent space on the hosted

servers. You usually pay for a subscription to have access to your data. Cloud is computing infrastructure and

services that you can rent.

 SaaS is a cost-effective way to have real-time access to software whenever and wherever you have an

internet connection. You don’t have to worry about server maintenance. Multiple users from 10 – 10,000

can access have to the same software. SaaS offerings are applications that are fully formed end-user


We at BatchMaster, provide both SaaS-based as well as Cloud ERP solutions. We offer affordable monthly

subscriptions, latest and automatic upgrades, 99.9% uptime assurance, absolute data security and work on pay

as you use model

about batchmaster

About BatchMaster


 30+ years of experience

 7 offices around the globe

 ERP solutions for small to mid-sized industries

 Available in 3 languages- English, Chinese, and Spanish

 SAP B1 and Microsoft certified solution

 Original developer of formulation system in ERP

 Over 40,000 users worldwide

 Consistent record of never exceeding implementation

time of 350 to 500 hours

 Headquartered in California, with footprints across

the world

 Global presence with offices in 3 continents - North

America, Australia, and Asia




To know more on SaaS as a tool for small businesses, read our white-paper on A Small business guide on SaaS tool

To find out the growth after cloud ERP gets implemented in your business, read our blog on Why cloud ERP is

advisable for small businesses?

To know what are the basics before your switch to a cloud ERP, go through the blog on 6 Questions to Ask Yourself

Before Moving to Cloud ERP

Also, To know how Cloud ERP helps in growing your business, read the blog on Thinking Business Growth with Low

Investment? Think Cloud ERP!

For more queries, Email us at : or visit us on :