There are two major options relative to how businesses can implement Enterprise Resource Planning or ERP. The first option is to go traditional where the business solution is hosted within the company’s servers. The other option is called SaaS (software as a service) where the applications and solutions will be hosted on the servers of the vendor. At the end of the day, the main objective of SaaS is to effectively manage the cost, technical support and the use of hardware, software and resources. There are some names that normally crop up when it comes to SaaS ERP including SAP (Business by Design) and Netsuite. Many businesses and start-ups are putting their money on the SaaS ERP. Some things to consider before deciding what’s right for you are:

1. The main advantage of the SaaS is in its simplicity since this is easier to deploy, manage and upgrade;

2. Another advantage with this arrangement is that employees can use the system anywhere they are without stretching internal resources;

3. The SaaS approach will also translate to lower initial costs which can be help start-ups and small enterprises.

Along with the strong benefits, it should be kept in mind that there are some limitations and concerns regarding the use of SaaS for ERP. Though the use of this option will translate to lower cost, still it should be realized that the payment for the SaaS ERP can be large when computed by year. As long as you are using SaaS ERP, you’ll have to pay for it on a monthly basis. Ultimately it will be decided by company needs and how it sees the trade-offs between the two.