ERP software delivered at client site (on-premise and license being installed at client server and after go-live ERP application either maintained by client’s IT team or outsourced to ERP vendor. Deploying these ERP software in a company with several departments can cost hundreds of thousands (depends on currency) in upfront licensing cost, and also requires a team of IT consultants to customize and integrate it with the client’s other business applications and database.
Software-as-a-Service (SaaS) is a new and growing method in ERP software delivery and maintenance. SaaS is a software distribution model in which applications are hosted by an ERP service provider and made available to customers over the Internet. It is very similar to leasing a car rather than buying it.