What is the difference between saas system and traditional erp?

Difference: 1. Traditional ERP generally requires a one-time payment, which is relatively high; while SaaS generally requires regular payment. 2. Traditional ERP requires dedicated personnel for maintenance and operation, while SaaS is maintained by the system provider without additional expenditures on personnel and maintenance. 3. The data of the SaaS system is stored in the cloud, while the traditional ERP is stored on the local server.

SaaS introduction:

SaaS is the abbreviation of Software-as-a-Service (Software as a Service). SaaS providers build all the network infrastructure, software, and hardware operation platforms required for informatization for enterprises, and are responsible for a series of services such as all early implementation and later maintenance. Enterprises do not need to purchase software and hardware, build computer rooms, or recruit IT personnel. The information system can be used via the Internet. SaaS is a software layout model whose applications are designed for network delivery and are easy for users to host, deploy and access via the Internet. (Excerpted from Baidu Encyclopedia)

ERP introduction:

ERP is the abbreviation of Enterprise Resource Planning (Enterprice Resource Planning). ERP is an American computer technology consulting and evaluation group. A supply chain management idea proposed by Gartner Group Inc. Enterprise resource planning refers to a management platform based on information technology and using systematic management ideas to provide decision-making and operation means for corporate decision-makers and employees. It jumps out of traditional enterprise boundaries, optimizes enterprise resources from the scope of the supply chain, and is mainly used to improve enterprise business processes to enhance the core competitiveness of enterprises. (Excerpted from Baidu Encyclopedia)

The difference between SaaS system and traditional ERP

For people who are not familiar with the above two products, subconscious I think both of them sell software. In fact, this is not the case. If you dig deeper, the difference between the two is not small.

Difference 1: Different charging methods

Cost-price ratio, as the main factor in users’ desire to consume, determines the demand effect of the product to a certain extent. Traditional ERP generally requires one-time payment, which is relatively high; while SaaS generally requires regular payment. If the user does not want to use the product one month after purchasing it or major problems occur, and subsequent problems cannot be solved well, then the money spent on traditional ERP will be wasted, but there is no such situation with SaaS.

Difference 2: Restrictions and convenience

Traditional ERP requires maintenance and operation by dedicated personnel, while SaaS is maintained by the system provider, without additional personnel and maintenance expenditure. Traditional ERP requires a "fixed environment" to run, while SaaS only requires an Internet connection and has no restrictions.

Difference 3: Different computing and storage methods

SaaS is a form of cloud computing application, and traditional ERP systems do not have this feature; data of SaaS systems Storage is also in the cloud, while traditional ERP can only be stored in local servers. If the local server fails and crashes, the consequences can be imagined.

Difference 4: Service method

As long as traditional ERP providers sell the system, subsequent services require extended warranty or additional payment, and the enterprise itself needs to be responsible for daily maintenance ; SaaS, on the other hand, is maintained and managed by dedicated personnel from the provider, who updates and repairs the system in real time, which provides greater guarantee for the security and stability of the system.

The above is the detailed content of What is the difference between saas system and traditional erp?. For more information, please follow other related articles on the PHP Chinese website!