SaaS ERP refers to ERP (Enterprise Resource Planning) software that is hosted by the vendor or a third-party application service provider (ASP) and delivered to customers over the Internet. Using the SaaS ("Software-as-a-Service") model, customers can reduce upfront costs by not having to purchase expensive hardware and take the onus off the IT department, since the vendor handles all upgrades.
SaaS ERP software is typically sold through an annual or monthly subscription fee, which tends to be a lot more affordable for small-to-medium sized businesses (SMBs). The SaaS model is essentially like "renting" ERP software, as opposed to the on-premises model, which is analogous to "owning" the software. There are pros and cons to both, but SaaS ERP tends to be more geared towards SMBs who may not be able to afford a complete on-premises ERP solution. With SaaS ERP software, customers are typically charged per usage, making it essentially an "on-demand" solution. Some vendors have a per-user fee, which some customers view as penalizing the company for growing.
There are disadvantages to the SaaS model. One is that customers may not be able to customize the software to better fit their business. Some customers may also find SaaS ERP to be less scalable and flexible, though SMBs may not notice these problems. SaaS ERP is intended for small and medium companies rather than large enterprises.
Although most vendors do not provide their pricing information to the public, the average customer can expect to pay around $1,000 to $10,000 per month, depending on the size of the business. Acumatica, on the other hand, provides custom pricing information through the Pricing Tool, which can provide a custom quote based on your deployment model and selection of modules.
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