Global Saas-based ERP Market 2009 – 2013
Report Summary

SaaS (Software-as-a-Service)-based Enterprise Resource Planning (ERP) is an on-demand deployment of ERP software, where the user can access the software through license or lease as a Web-based service. It provides an alternative to implementation or maintaining ERP software. SaaS- based ERP includes finance, order management, inventory control, purchasing and manufacturing functionality. The increasing popularity of the SaaS- based applications account for the growth of ERP, as the enterprise resources are maintained by a service provider. Further, SaaS- based ERP provides a flexible, low-cost business model to enable its customers focus more on their core business. Moreover, the businesses can easily meet the fluctuating demands through this model. Additionally, the SaaS- based ERP service provider gives customers network-based access to ERP applications, which is created specifically for SaaS distribution. Thus, it eliminates the need for time consuming patches and updates in the ERP software.
Presently, the credit crunch and small & medium businesses are opting for SaaS- based ERP as a cost effective alternative by making installment based payments. Moreover, most of the IT companies are channelizing their product portfolio and introducing new service offerings. However, issues such as convincing customers about the benefits of SaaS model, handling integration & interface and security issues, etc. are required to be addressed by the SaaS-based ERP vendors.
Till recently, the SaaS- based ERP marketplace has witnessed small or medium-sized businesses as customers for on-demand or SaaS ERP. On the other hand, the enterprise-level organizations have been reluctant to adopt the SaaS-based ERP. These enterprises are of the opinion that hosted or on-demand applications may not suit the complex sales processes or provide vertical functionality. However, the trend is changing with more number of enterprises finding more opportunities through SaaS deployments, irrespective of the size of their businesses.
The companies in the SaaS- based ERP marketplace are focusing more on user-centric applications than enterprise-centric. These SaaS- based ERP services can integrate content value chain and support operations in real-time, thus providing business insights from critical data. Also, these are characterized by realignment of business processes, resources, financials, etc so that the users can obtain a single view of spending levels. This maximizes usage of people and assets ensuring positive return on investment. Further, these address user requirements such as ease of implementation, and addition of personalized interface.

This report by TechNavio Insights highlights the current and future market potential of the Saas-based ERP Market. Further it discusses trends, drivers, growth inhibitors. It also profiles a few major vendors in the market.