SaaS ERP Systems & Hidden Costs

Whilst generally better than on-premise, SaaS ERP systems often have a number of hidden costs depending on the provider you opt for.

September 13, 2018

There is a general consensus amongst those in the software community that SaaS ERP systems are on the whole, cheaper to run than on premise systems. However, sometimes depending on which provider you opt for, this is simply not the case. There are often hidden costs involved in cloud based ERP, which you must taken into consideration before making the switch.

On the whole SaaS ERP systems are better than on premise, in part due to the savings they offer on physical goods such as servers and networking, as well as the labour costs associated with their upkeep. SaaS handles its own ongoing maintenance so employing IT techs is not required.

A SaaS ERP System isn’t always the perfect solution

Some people believe that SaaS ERP systems have a magic formula that cures all our woes when it comes to all things ERP, however this is simply not the case. In reality it is still possible to experience issues with cloud based ERP, such as advanced customisations and integration that is simply not compatible with the software.

Whilst there are many solutions on the market that offer customisable ERP software, most providers offer a standard “out of the box” package that is rarely customisable and certainly not bespoke to the needs of the individual business. Upkeep and upgrading their SaaS ERP systems is where a lot of business owners find themselves falling into a trap. Unexpected challenges and costs arise when a business wants the software provider to help them customise and upgrade their software around their business.

Also as well as bespoke changes, general software upgrades and updates can incur hidden charges through loss of productivity. A faulty or slow system can slow down your workforce and end up costing you more in loss of manpower as a result.

You Still Have To Pay For Service & Support

Part of the package when it comes to SaaS MRP software is to pay towards ongoing technical support, and if not inclusive in your deal, this can end up becoming quite a costly expense. Some software users often find themselves with costly bills for support and servicing if they don’t pick a trusted company that gives them support as part of a guarantee with their software.

So What’s The Best Way Forward

In conclusion, SaaS ERP systems can be very handy and often the right solution for your business, but you should only elect to use cloud based ERP if you can be sure that you have chosen a provider that will ensure your software is kept up to date, well maintained and can be called upon to assist with support without costing you a small fortune along the way.

Our ERP system is innovative, customisable and is fully supported by inclusive servicing and support. Contact our team today for more information.

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