What is the difference between Enterprise software and Enterprise SaaS?
Table of Content
1. What is Enterprise Software?
2. What is Enterprise SaaS (Software as a Service)?
3. Difference between Enterprise Software and Enterprise SaaS
4. How to Choose the Right System Between Enterprise Software and Enterprise SaaS
5. Conclusion
Whenever it comes to business processes, each step requires a thorough understanding of the outcomes. If the business process is not accurate or doesn’t fulfill the requirements or reach the expectations, the chances of getting benefits out of are nil. Therefore, while deciding on the type of software application to use to have a proper business process, the two options are Enterprise Software and Enterprise SaaS (Software as a Service).
Which to choose from these two can be a bit difficult as both these approaches offer the best services. Therefore, in this blog, we will understand each of these methods and go through its core differences, and ways to choose the right software solution for your organization.
1. What is Enterprise Software?
Enterprise applications are basically tools that companies use to focus more on solving business problems. These applications provide services like accounting, information sharing, customer relations management, automated billing, and more. Mostly, all the different types of enterprise applications are categorized by the different functions as per their role.
In simpler terms, enterprise software is just like any other program or system that can be used in large companies or government offices. The main objective of ERP is to offer control, enhance work effectiveness, and manage data within the firm.
2. What is Enterprise SaaS (Software as a Service)?
Enterprise SaaS (Software as a Service) is defined as one of the major three types of cloud applications. The other two are IaaS and PaaS. They are hosted by a third-party provider. SaaS is accessible to users through the Internet. It is considered one of the best alternatives to traditional tools and techniques used by companies. Enterprise SaaS apps are cheap and easy to implement.
As per the software development experts, SaaS has the scope that can benefit every business organization and it is getting wider every day. SaaS (Software as a Service) is basically a cloud platform for which companies pay a monthly fee in order to avail the services. But the responsibility to manage the infrastructure is not on the firm. Therefore, the cloud-based SaaS model is the best fit for small and medium-sized businesses.
3. Difference — Enterprise Software Vs. Enterprise SaaS
Let us go through the main differences between the two main approaches in the software development world, Enterprise Software, and Enterprise SaaS (Software as a Service).
- Conversion of Data
The implementation of SaaS is way simpler and this makes the data conversion process more condensed. The standard process for enterprise SaaS data conversion is to shift the important data once and then to convert only baseline information like membership information or contact details. Import of more detailed data is possible but it is generally outside the standardized method in SaaS.
On the other hand, with enterprise-level software, the implementation process may include two or more iterations of data conversion. Enterprise software contains broad sets of data like event attendance history, financial data, and product purchase history.
2. Cost
When it comes to cost, SaaS tends to follow monthly fees and services models. Therefore, the initial cost of the SaaS application will be lower than enterprise software, but later if you require any new feature it may cost a lot.
On the other hand, the pricing model of enterprise software follows software licensing, customization, and software maintenance. So, if you go with the enterprise model, the initial costs will be much higher, but it will include all the features and functionalities that your business would require from day one.
3. Operation
The operations of both enterprise software and enterprise SaaS are completely different. SaaS comes with limited customizability which doesn’t allow the businesses to perform all of the functionality as required.
While when it comes to an enterprise system, because of its customized approach, it addresses all the business functional needs.
4. Customization
With SaaS software, customization is limited to whatever functions the tool has to offer. It can be creating new fields or creating new entities. And because of this limitation, SaaS is only able to offer a multi-tenant environment. And this doesn’t enable pure customization.
On the other hand, one of the best advantages of enterprise software is that it offers customization. Because the business has its own software, it can customize the system needs.
4. How to Choose the Right System Between Enterprise Software and Enterprise SaaS?
The Enterprise solution market has grown a lot in the past few years. It includes a variety of delivery solutions and models. While enterprise Software as Service offers a bunch of premise-based enterprise solutions.
Therefore, nowadays, smaller niche software vendors offer enterprise solutions with industry giants like Oracle and SAP. This offers organizations a greater role in selecting ERP. While legacy systems fall short in comparison to customized enterprise solutions.
So, when it comes to choosing SaaS or ERP, you must ask yourself some questions before making a decision. This is necessary as not every solution is perfect for your business. These questions may include -
- Does the business require a highly customized solution?
- Is there any new application you want to integrate with existing legacy software?
- Does the app you chose have all the required features?
- Is the deployment scope clear?
- What is the deadline for software deployment?
- Does your company need to upgrade its IT infrastructure?
5. Conclusion — Enterprise Software Vs. SaaS
As seen in this blog, both enterprise SaaS and ERP applications can be a great choice for your business but not everyone requires one. The main reason behind it is that business applications are not only about software but also about the process of the business. Besides, adapting to new business processes and platforms can be challenging for any business. Therefore, an organization must consider all options.
Both ERP and SaaS solutions offer new ways of managing the company, employees, and resources. So choose the one that fulfills all the business requirements.
