The document provides an overview of the differences between Software as a Service (SaaS) and Cloud Enterprise Resource Planning (ERP), highlighting their respective benefits for businesses, particularly small enterprises. It explains how Cloud ERP is hosted on vendor servers with centralized management and offers real-time data access, while SaaS is a subscription-based model requiring no installation and managed by third-party providers. Both models allow businesses to reduce IT infrastructure costs and enhance flexibility, with SaaS being a subset of Cloud ERP, suitable for organizations with limited operations.

1. How is SaaS
Different from
Cloud ERP

2. An Overview
• ERP in modern times
• Cloud ERP
• Cloud ERP for small businesses
• Software as a service (SaaS)
• SaaS for small businesses
• SaaS characteristics
• Benefits of SaaS
• Difference between Cloud ERP and SaaS Model
• Is SaaS the solution for your business?
• Conclusion
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3. 2ERP in Modern Times
 With change in technology over the years, ERP software too have evolved and become compatible to the
needs of modern-day businesses
 Breakthrough success in areas such as cloud computing, and SaaS-based services has meant that the
companies these days get increased functionality at a lower cost from the ERP vendors
 This has also opened the doors of contemporary ERP systems for business of all sizes, including small
enterprises
 Modern ERP solutions have made small businesses battle-ready to take on competition and venture into
markets earlier dominated by big companies
 With modern ERP’s benefits like streamlined operations, improved productivity & efficiency, effective R&D
and product development, access to real-time data etc., the small businesses are thriving

4. 3Cloud ERP
 Cloud ERP is hosted on vendor’s servers and consists of infrastructure and services that you can rent such as
servers, data storage capacity, communications and messaging capacity, and network capacity
 The software and its data is managed centrally at a remote datacenter (Internet "cloud") by the ERP vendor
 Data can be accessed by customers through a web browser, from anywhere and anytime using any device
 Cloud ERP is cost-effective as the maintenance and support costs get eliminated with the support being
provided from remote data center. Customers can pay only for what they use through easy monthly
subscription
 With Cloud ERP, the firms also have the benefit of secured data with back-up since it is not stored on their
servers locally
 With Cloud ERP, customers have full control over the software, while in SaaS model vendor has the control

5. 4Cloud ERP for small businesses
Cloud ERP is a one-stop solution for small businesses. Listed below are some of the reasons that convinces
small business owners to raise their hands for a cloud ERP:
 Cost:
- Avoids upfront costs for all computing infrastructure
- Reduces need of IT support services
- Eliminates the need to pay additionally for application software licenses in favor of a monthly fee
- No recovery and backup costs
- Supports free and automatic updates
 Deployment:
- Installed on the vendor server and accessed over the internet through any web browser
- No installation on client’s machine
- Saves time & reduces installation complexities

6. 5Cloud ERP for small businesses
 Implementation:
- Less implementation time helps in faster ROI generation
- Hosted on vendor server
 Maintenance:
- Shrinks the cost of software maintenance and support, as ERP vendor handles the upgrades and backups
 Continued Support:
- Offers 24x7 support
- Cloud ERP Vendor fixes the problem faster; thus saving time for more productive works

7. 6Software as a Service (SaaS)
 SaaS specifically refers to software that is delivered on-demand over a network
 It is a software licensing and delivery model in which software is licensed to a user and accessed through internet
by any web browser
 The user does not need to install and maintain the software, as the application runs on the servers and datacenter
of the SaaS provider
 The third-party vendor is responsible for the security, performance, and maintenance of the application on their
servers
 Provides facility on monthly subscription basis, therefore cost is based on service level and number of users
 Assures regular data backup and disaster recovery plan. Offers scalability and flexibility to organizations with
limited size
 SaaS applications run ‘in the cloud’, but they are not the cloud

8. SaaS for small businesses
SMEs get the following benefits after opting for SaaS business model:
 Easy access to sophisticated applications:
- No investment required for acquiring the hardware or software tools
- Helps small organizations to afford IT infrastructure for their business management
 Ease of paying as per usage:
- Automatically scales up and down according to the level of usage, just pay as you use
 Use free client software:
- Run most apps directly from web browser without downloading them
- Eliminates the need to install any software on machine
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9. SaaS for small businesses
 Mobilization of workforce:
- Mobilizes workforce by providing real-time access from any location and any internet-enabled device
- Service provider sorts out all issues and bugs of the software
- Ensures smooth functioning of the software
 Access app data from anywhere:
- Data gets stored on the cloud, users can access information from any device
- When data is stored on the cloud, no data is ever lost even if user’s computer or device fails
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10. SaaS characteristics
 Multi tenant architecture
 Easy customization
 Real-time data access flexibility
 Harnesses web interface
 Scalability
 Seamless integration
 Pay as you go ahead
 Vendor takes authority for upgrades, uptime and security
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11. Benefits of SaaS
When ERP is delivered in a SaaS model, businesses flourish tremendously.
Let us take a look at the advantages delivered by SaaS solutions:
 Lower total cost of ownership:
- Reduces cost of purchasing software licenses, installing hardware, and setting up the network
- Lowers expenses of maintaining IT infrastructure
- Pay as you use the software
 Lower risk of deployment:
- Minimal implementation risks
- Advanced security features
- Less chances of project failure
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12. Benefits of SaaS
 Easy Accessibility:
- Allows access from different location
- Virtual environment allows user to have real-time information
- Integrates all global operations and brings them on a single platform
 Fast Upgrades:
- Eliminates issues of being stuck with an outdated software system
- Ensures continuous upgrades of the software to latest versions
- Allows user flexibility to customize the system according to unique business needs
 Enhanced Security:
- Ensures data safety by using right tools and testing all the vulnerabilities
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13. Benefits of SaaS
 Support:
- Provides round the clock support to the customers
- No extra expenditure to avail support services
- Support covers: answering queries, resolving issues, bug fixing and software upgrades
 Ease of management:
- Applications are completely managed by the SaaS ERP vendor
- Service-level agreements (SLAs) govern the quality, availability, and support commitments to the
customer
 Cross-device compatibility:
- Ideal for those who use a different device such as mobile phones, laptops, tablets, or PCs
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14. 13
 With Cloud ERP, a user is able to customize and manage an application on a server that is hosted
by a third-party. You are given access to your data on those servers via the internet
 With SaaS, you pay a subscription to access an already developed software application via a web
browser. You don’t have the responsibility of maintaining the software. You lose some control
over the management and customization of the application
 SaaS can be referred as a subset of Cloud ERP.
 They are quite similar and often used interchangeably
Difference between Cloud ERP and SaaS Model

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I. On the basis of scope:
 Cloud ERP system is an ERP software with off site hosting solution which is scalable, flexible and capable to
access real time-data for industry of any size
 SaaS offerings, on the other hand, are comparatively smaller and best suitable for the organizations having
limited operations, size and global presence
II. On the basis of payment methods:
 For purchasing Cloud ERP, you pay for the complete software
 While opting for ERP with SaaS, you pay as you use the applications
Difference between Cloud ERP and SaaS Model

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III. On the basis of acquisition:
 A Cloud ERP system is purchased and acquired from an ERP vendor for use
 SaaS ERP is rented or borrowed through internet on subscription basis and used according to the need
IV. On the basis of hosting and control:
 Cloud ERP system controls your data and your application through server with full control over application.
Customer has full control over the software
 Only vendor has full control over the application, as they host SaaS on their own infrastructure instead of
locating on-premise. Customer does not have full control over the application
Difference between Cloud ERP and SaaS Model

17. 16Is SaaS the solution for your business?
Now that we know the basic differences and definitions of Cloud ERP and SaaS, we can say that:
 With SaaS, businesses eliminate capital expense of IT infrastructure and invest in enhancing innovation to
generate more revenue
 With Internet connectivity at our fingertips, users can easily access the ERP application and data
 As technology improves, the infrastructure cost rises. Thus companies are adopting SaaS to reduce the cost
incurred
 With SaaS, you get:
- Cost reduction
- Better scalability
- Innovation
- Efficient planning

18. Conclusion
 With Cloud ERP, you don’t have to host, maintain, or upgrade the servers. You have access to your data in
real-time, whenever you need it. Costs are usually lower because you just pay to rent space on the hosted
servers. You usually pay for a subscription to have access to your data. Cloud is computing infrastructure and
services that you can rent.
 SaaS is a cost-effective way to have real-time access to software whenever and wherever you have an
internet connection. You don’t have to worry about server maintenance. Multiple users from 10 – 10,000
can access have to the same software. SaaS offerings are applications that are fully formed end-user
applications.
We at BatchMaster, provide both SaaS-based as well as Cloud ERP solutions. We offer affordable monthly
subscriptions, latest and automatic upgrades, 99.9% uptime assurance, absolute data security and work on pay
as you use model
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19. 18
 30+ years of experience
 ERP solutions for small to mid-sized industries
 SAP B1 and Microsoft certified solution
 Over 40,000 users worldwide
 Headquartered in California, with footprints across
the world
 Global presence with offices in 3 continents - North
America, Australia, and Asia
 7 offices around the globe
 Available in 3 languages- English, Chinese, and Spanish
 Original developer of formulation system in ERP
 Consistent record of never exceeding implementation
time of 350 to 500 hours
About BatchMaster

20. Resources
• To know more on SaaS as a tool for small businesses, read our white-paper on A Small business guide on SaaS tool
• To find out the growth after cloud ERP gets implemented in your business, read our blog on Why cloud ERP is
advisable for small businesses?
• To know what are the basics before your switch to a cloud ERP, go through the blog on 6 Questions to Ask Yourself
Before Moving to Cloud ERP
• Also, To know how Cloud ERP helps in growing your business, read the blog on Thinking Business Growth with Low
Investment? Think Cloud ERP!
• For more queries, Email us at : sales@batchmaster.com or visit us on : www.batchmaster.co.in
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