SaaS ERP vs Cloud ERP: everything you should know

Learn the differences between SaaS ERP and cloud ERP solutions. Discover which option best fits your business needs.

ERP, or enterprise resource planning, software has become a must-have for any business that wants to keep all of its business operations under control and running smoothly all the time. The ERP software market has grown because more and more companies are building highly advanced business solutions and jumping on the bandwagon of system providers. So, anyone looking for an ERP system has a lot of different options.

SaaS ERP is a type of cloud-based ERP software that is sold as a service over the internet and is paid for on a per-user, per-month basis. SaaS ERP runs on the servers of a vendor, and the seller usually updates the software every three months.

With cloud ERP, the ERP software is run and supplied by servers in other places. Companies pay vendors for the tools and functionality they need. Users can change their cloud ERP by adding or taking away tools they no longer need. Compared to on-premises ERP, this makes cloud ERP much more flexible and scalable. Data can also be accessed in real time by companies. Hardware and program updates are also taken care of by the vendor.

SaaS ERP vs Cloud ERP Comparison Table

The comparison table shows how SaaS ERP and Cloud ERP are different. SaaS ERP is a software distribution approach that makes software accessible and scalable without having to worry about infrastructure. Cloud ERP, on the other hand, refers to ERP systems that are hosted in the cloud and offer freedom and access from anywhere. Both make processes run more smoothly, but SaaS puts an emphasis on how easy it is to use, while Cloud ERP puts an emphasis on customization and control.

FeatureSaaS ERPCloud ERP
Deployment ModelHosted on vendor’s servers and accessed via the internet.Can be hosted on-premises or on the cloud.
AccessibilityAccessible from anywhere with an internet connection.Provides flexibility in access from various locations.
Upfront CostsLower initial costs as there’s no need for hardware and infrastructure setup.May have higher initial costs for hardware and setup.
MaintenanceManaged and maintained by the vendor.Maintenance responsibilities shared between vendor and user.
ScalabilityEasily scalable, adding users as needed.Scalability varies based on cloud and deployment model.
CustomizationLimited customization options due to shared infrastructure.Offers greater customization options based on deployment.
Data SecurityRelies on vendor’s security measures.Data security can be tailored based on deployment choice.
IntegrationIntegration with other SaaS tools might be smoother.Integration options vary based on deployment.
UpgradesAutomatic upgrades and updates by the vendor.User may have control over upgrade schedule.
Cost ModelSubscription-based model, pay-as-you-go.Can be subscription-based or one-time license fee.
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SaaS ERP vs Cloud ERP: Benefits

SaaS ERP vs Cloud ERP

SaaS ERP benefits

SaaS ERP systems offer pricing based on subscriptions, regular updates, and the ability to grow, which makes them a good choice for businesses of all kinds.

Cost savings: With SaaS ERP, you don’t have to buy a lot of tools and software, which lowers your costs up front.
Rapid Deployment: SaaS ERP systems can be set up quickly, so businesses don’t have to wait to start using the software.
Automatic Updates: Updates and maintenance are taken care of by the provider, so businesses always have access to the most recent features and security fixes.
Scalability: Changing the payment plan makes it easy for SaaS ERP to keep up with growth or shrinkage.
Accessibility: Users can use the ERP system from different places and gadgets as long as they have access to the internet.

Cloud ERP’s benefits

Cloud ERP options allow for customization while also taking advantage of the scalability, accessibility, and low cost that cloud technologies offer.

Customization: There are more customization choices with Cloud ERP, so businesses can make the system fit their own processes and needs.
Flexibility: Businesses can choose between public, private, or hybrid cloud deployments, depending on their data protection and compliance needs.
Data Control: Cloud ERP solutions give businesses more control over the protection and privacy of their data, which makes them good for industries with strict rules.
Integration: Cloud ERP systems can work better with other apps and services, which helps create a more cohesive IT environment.
Scalability: Like SaaS ERP, cloud ERP options can be changed to meet the changing needs of a business.

SaaS ERP vs Cloud ERP: Deployment and Accessibility

SaaS enterprise resource planning software is completely hosted by the service provider, making it simple to use from any location with an internet connection. Because of this paradigm, enterprises no longer have to take responsibility for managing the underlying hardware and software infrastructure.

Cloud ERP solutions can also be accessed remotely, but businesses have the choice to select whether the system will be hosted on a public cloud, a private cloud, or a hybrid cloud. This gives a greater degree of control over the customization and the security settings.

Customization and Integration

Because of the nature of the shared software, there may be less room for considerable customization in SaaS enterprise resource planning systems. Despite the fact that they frequently include configuration choices, the level of customization may be severely restricted in order to preserve system uniformity across users.

Cloud ERP systems provide organizations with more personalization options, which makes it easier for them to adapt the software to meet their unique requirements. Cloud-based solutions can allow for easier and more seamless integration with the apps and services that are already in use.

SaaS ERP vs Cloud ERP: Scalability

SaaS ERP vs Cloud ERP

The suppliers of SaaS ERP systems maintain the necessary infrastructure to support rising consumption, which results in the systems’ inherent scalability. Because of this, they are excellent for use in companies that are undergoing rapid growth or facing fluctuating demand.

Cloud ERP solutions provide additional benefits in the form of scalability, particularly in the public cloud deployment approach. Organizations have the ability to modify their resources as necessary, which allows them to maintain maximum performance even during times of high demand.

SaaS ERP vs Cloud ERP: Security and Data Control

In order to use SaaS ERP systems, the data security must be entrusted to the supplier. Even though respected service providers use stringent security measures, companies that must adhere to particularly stringent compliance standards could be concerned about data control.

Cloud-based ERP solutions give users more control over the data security, especially when implemented in a private or hybrid cloud environment. When it comes to complying with industry laws, businesses have the option of implementing their very own security processes and encryption technologies.

SaaS ERP: Pros and Cons


  • Ease of Implementation
  • Automatic Updates
  • Scalability
  • Cost Efficiency


  • Limited Customization
  • Internet Dependency

cloud ERP: Pros and Cons


  • Data Control
  • Integration Ease
  • Remote Accessibility
  • Customizable


  • Complex Implementation
  • Expertise Needed

SaaS ERP vs Cloud ERP: Which one should you consider?

Modern companies that want ERP systems that work well and are easy to use can benefit from both SaaS ERP and Cloud ERP. Which one you choose relies on things like your budget, how much you want to customize it, how secure you want it to be, and how big you want it to get.

While SaaS ERP makes deployment easier and saves money, Cloud ERP gives you more control, customization, and freedom. When these factors are carefully looked at and compared to the goals of the business, organizations will be able to find the ERP system that best fits their needs and helps them grow.


What is the difference between cloud ERP and SaaS ERP?

Cloud ERP may have more room for flexibility, but SaaS ERP can usually be set up faster and costs less up front.

Is SaaS a cloud-based ERP?

SaaS ERP is a type of cloud-based enterprise resource planning software that runs on the servers of the vendor or cloud provider, is sold through subscription, and is provided as a service over the internet.

Is SaaS and ERP the same thing?

SaaS ERP is a type of cloud-based ERP software that is sold as a service over the internet and is paid for on a per-user, per-month basis. SaaS ERP runs on the servers of a vendor, and the seller usually updates the software every three months.

Editorial Staff
Editorial Staff
The Bollyinside editorial staff is made up of tech experts with more than 10 years of experience Led by Sumit Chauhan. We started in 2014 and now Bollyinside is a leading tech resource, offering everything from product reviews and tech guides to marketing tips. Think of us as your go-to tech encyclopedia!


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