Most enterprise software runs on servers at a business’ premises. However, a growing percentage of solutions like customer relationship management (CRM) or even enterprise resource planning (ERP) applications are delivered from the cloud. Sometimes they are even sold not through a perpetual license, but as a cloud subscription service.
Earlier this year, IFS asked 200 North American business executives involved with ERP and other enterprise software what they thought of the various methods of software provisioning, including on-premise, software-as-a-service (SaaS) and private cloud.
The answers to their survey reveal interesting opinions on SaaS versus on-premise and other cloud-based delivery models for ERP, which offer insights into what businesses see as the advantages and disadvantages of each.
In the case of SaaS, three clear views emerged from the survey:
1.Cost is seen as both a plus and a minus. Survey respondents think initial costs would be lower, but as the software is being rented, they believe costs would likely be higher in the longer term.
2.Automated upgrades are both an advantage and a drawback. As with hosting services, the service provider takes care of software maintenance and upgrades: you concentrate on running your business. Of course this means you yield some control to the vendor, who may change versions at a time you are ill-equipped to make the adjustment.
3.Security and control were jointly the most frequently-cited disadvantages. Lack of ownership of the software contributes directly to cost, so these issues may be seen as interdependent.
To read more about the results of the survey, visit the
IFS website.
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