ERP as SaaS: Are Large Enterprises ready?
Author: Alok Pant, Senior Vice President, Global Marketing & Alliances
SMB customers have already adopted Tier 2 ERP packages as Software as A Service (SaaS) and are running their business critical processes. They are benefiting from lower costs, and flexibility to ramp up or down IT resources with the business.
The question that comes to mind is whether or not, large enterprises are ready to adopt ERP on a SaaS mode. More specifically, are large customers who have traditionally bought software licenses and installed it on-premise, willing to buy SAP or Oracle software on a subscription basis from the software vendors or service providers?
Lately, service providers have been offering Infrastructure as a Utility for SAP and Oracle applications. It seems but a natural extension for service providers to offer the Application itself as a Utility on a Pay as You go/subscription model. Customers would be happy to shift their application expenditure from CAPEX to OPEX.
If you have any thoughts on the readiness of large enterprises to embrace ERP on a SaaS model, please comment and share your ideas with us.
Note: Comments will be posted after approved by the author.
Tags: cloud computing, ERP, SaaS