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Experts Forecast Global SaaS based ERP Software Market to Grow at a CAGR Of 13.8%

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Why SaaS Based ERP Software Is Gaining Popularity?

Unlike the conventional method of purchasing ERP software licenses, there is a growing trend among organizations, where Software as a Service (SaaS) based model allows them to rent or license an ERP software package for a protracted period of time. It is a vicious circle where increased demand for SaaS based ERP has lead to increased number of vendors providing this service and as a result, there is an increased competition in the market. This in-turn positively affects the quality of services provided. As a result, the SaaS ERP market is growing, evolving and expanding.

SaaS Based ERP

According to a research conducted by, the global SaaS based ERP market 2014 – 1018 will grow at a compound annual growth rate (CAGR) of 13.8%.

SaaS based enterprise resource planning software allows deploying ERP applications as a web based subscription service. Traditionally, ERP installation and maintenance is done on premises, however in a SaaS based approach, ERP software is operated by a third party. It is hosted at a remote location and organizations pay to a third party for using the software.

Benefits of SaaS based ERP Software

SaaS based ERP software has become crucial for business growth. The benefit of SaaS based ERP, is that, enterprises do not need to bother with the ever evolving software updates. Besides, maintenance, increased storage requirements and troubleshooting issues are also handled at remote locations by the vendor. Hence, organizations can focus on their core business activities.

Not every organization is capable of handling deployment of IT tools such as ERP software. Improper deployment can result in several issues and causes more harm than gains. This is also one the reasons why it is a better strategy to choose the SaaS Based ERP as opposed to the traditional on premises ERP development and deployment.

Mobility Solutions

Another trend related to ERP, which is on the rise across organizations, is mobility. By implementing mobility, end users can access the ERP software on any mobile device such as a smart phone or a tablet. The trend of allowing employees to stay connected and work while they are on the go, has gained popularity in US, UK and India. Mobility trend is gaining momentum, and ERP vendors are bracing up to cater to these increasing demands for mobility. While most vendors offer ERP solutions on Mobile devices, some have enabled web interface from web browsers.

Cloud-based ERP

Another emerging, rather a trend that has emerged and is bourgeoning at a great speed is cloud based ERP. Organizations planning for a reshuffle from a traditional to a SaaS based ERP model should definitely consider opting for the cloud-based ERP. It definitely offers higher value and improved functionality.

Green Benefits

In a SaaS based ERP system on cloud, there is no requirement for on premise servers, storage facilities and cooling systems for these servers. As a result, the carbon emissions from these systems are reduced. In Organizations that adopt a SaaS Based ERP system, Data and reporting is maintained electronically hence these organizations become key contributors towards sustainability, reduced use of energy, reduces paper and print supply usage etc. Additionally, SaaS based ERP solutions enable employees work from home; as a result, they need not commute daily to office. This means that carbon emissions due to commuting to and from office daily are also reduced.

A lot of companies are vying to tap the potential of ERP solutions and leverage their business processes. Organizations, who have adopted a traditional on-premise ERP approach, are transitioning to a better, evolved and a new approach i.e. a SaaS based ERP software. Companies who have already adopted the SaaS based ERP model are trying to incorporate the solution in other segments such as web based ordering, CRM, product configuration & so on.

Chirag Shivalker
About the Author: Chirag Shivalker heads the Content team at Hi-Tech iSolutions LLP. He has a long history in the BPM space and covers wide range of topics on BPM, Enterprise 2.0 and technology trends in business. He also enjoys writing about how active leadership and development plans can pave path for a process aware organizational culture that helps successful and sustainable process – based management.