Cloud-based, SaaS ERP Implmentation Showing Marked Growth

February 8, 2013

Contrary to earlier reports, enterprise resource planning (ERP) software isn’t going away – and new technologies like cloud computing are largely responsible for the sector’s comeback. 

A recent Panorama Consulting study found that Software-as-a-Service (SaaS) and cloud-based ERP implementation achieved the highest growth rate in 2012, increasing from 6 percent of the market share in 2011 to 18 percent in 2012.

At the same time, the research revealed that different types of ERP systems are on the rise. Single systems, for instance, allow for the centralization of applications and data. In the past, full-scale ERP implementation was timely, costly and not always effective – but cloud computing mitigated many of these issues.

Tier 1 and Tier 2 systems, on the other hand, allow companies to implement specific applications individually. From business intelligence tools to customer relationship management, organizations can deploy these programs based specifically on their business needs.

In a recent blog post for CloudTweaks, Douglas Johnson, vice president of marketing and development at Acumatica, said that SaaS ERP is especially popular among small and medium-sized businesses, particularly because of the software’s or the businesses’ low hardware and software costs. In addition, most of the managing responsibility goes to the vendor rather than internal IT departments.