Companies have been trying to cut down the cost where ever it is possible. Either it may be on daily operations or on choosing software which is affordable without compromising on the quality. Normally, Enterprise Resource Planning (ERP) costs a lot of amount for the company. Most of the companies may not afford to go with the ERP application just because of the high cost. They need to buy application license, server to install the application, implementation charges, annual maintenance cost and the daily administration cost. All these things lead to pile up the cost sheet for the company.
To avoid this obstacle, most of the ERP vendors have come up with an innovative application called web based ERP application. This is also popularly known as Software as a Service (SaaS). For the web-based ERP application, customer does not require to buy server nor the application licenses. Everything will be on rental based. The customer needs to pay the money on monthly basis based on the licenses he has taken. The central server will be located at the vendor place and the applications will be deployed from the central location to the end user thorough internet. The customer does not need to own any thing in this case. He can use the application just with the minimum resources such as an internet and a desktop or laptop.
Normally, in the traditional server based application, the customer needs to buy a high end server by pouring huge amount of money. The license charge is too high in the server based application. Generally, it takes a lot of time to implement the server based ERP application and there is no guarantee that the implementation will be succeeded. The miscellaneous cost such as power for the server, administration will also make customer go crazy.
To avoid all these uncertain and costly things, web-based ERP application will be good enough. The implementation charges are bare minimum in this method. It does not take much time to deploy the enterprise resource planning application. Rarely does it take a week to deploy the application, if you go for Software as a Service based enterprise resource planning application. You can use the application on demand.
Whenever you want to get rid of the enterprise resource planning application, you just need to intimate the vendor and stop using the application. To put in a nutshell, if you use the application, you will pay for that.
As the server is located at the central location, the vendor will assure the data security. Your data will be given to you on the regular basis by the vendor. At the time of quitting from the software, you can take all the data of yours and you can copy the same into your local systems. There is a lot of flexibility in the web-based application.
The server based application is so costly, time taking process and may not be flexible whereas the web-bases application is affordable, easy deployable and flexible in nature.
