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Planning to implement ERP in a company is huge investment and to implement ERP system companies need lots of resource in every term. Previously when company is implementing ERP needs much resource such as Servers, Hard Drives, Switches, Hub and many more things that are very much costly to buy new ones for a company and becomes a huge investment.
To overcome this issue ERP is being implemented on SAAS model in order to reduce cost fixed asset investment cost and avoid unnecessary fees of unwanted services offered by ERP implementation. Here are some reasons why ERP is implemented on SAAS model.
Investment on Infrastructure is reduced:- Implementing ERP on SAAS reduces unnecessary investment such as Hardware, Networking instruments and many more. It also reduces operational management such as DBA which installs and manage the system.
Cost Reduction:- SAAS model reduces cost such as upgrade, various instruments, integration cost, implementation cost. Every time when ever upgrade is to be taken place you need not have to bother as you are using SAAS. Because it is handled globally and various services are provided, so it reduces much cost.
Accessibility:- One of the major advantages of SAAS application is that you can have Global Accessibility at a single click. You can access any information at anytime from anywhere.
SAAS has many advantages while implementing ERP. It reduces initial investment of various expensive peripherals cutting into monthly usage fee whatever application you are using. Flexibility is another advantage of it, you can change monthly fee according to the need and monthly fee may vary on the application you had used, but the thing is you have to pay in advance.
Now day Website Development Company which is at initial stage uses cloud computing to reduce many costs. They even try convincing their client to go for cloud as it has many cost cutting advantages.