Software as a Service (SaaS) ERP is grabbing a lot of attention as an alternative to traditional on-premises ERP, but for many companies, the reality is quite different. The more commonly used option is hosting ERP at a third-party provider that runs an instance of the ERP system off site, according to Eric Kimberling, managing partner of Panorama Consulting Solutions.
Kimberling explains the benefits of hosted ERP providers versus multi-tenant SaaS ERP in this video interview at Panorama's ERP Boot Camp, which took place recently in Vail, Colo.
"There are certainly instances where SaaS makes sense for a number of clients, particularly if they're a smaller, maybe less complex organization," Kimberling said, "or if it's a larger company that has a specific functional area that they want to isolate or focus their SaaS initiatives on, such as CRM within the sales organization. But, beyond that, when you start to look at midsize to larger organizations [with] some level of complexity (the third-party, hosted off-premises model that's not pure SaaS -- but it's still their own instance of the software being hosted by someone else), it can be a good, viable option that can kind of give you the best of both worlds."
Kimberling also addresses the perceived drawbacks of using a hosted ERP provider, the kinds of companies that Panorama sees employing it as a SaaS ERP alternative, and what to look for in a hosting provider.