How SaaS can occupy a "niche" in the mainstream ERP world

the benefits of the SaaS are being drawn step-by -step by corporate buyers for enterprise software that is based on usage, implementation speed, and low down payment. companies are willing to pay for them, and want to purchase the ERP software can run for 10-15 years, and the software features, industry solutions and software supplier qualification requirements are not low.

The delivery and implementation paradigm of the application has changed dramatically since 1999 Salesforce of the United States has entered the domain of enterprise management software SaaS (Software-as-a-serivce: Software as a service). In China, 800CRM and Xtools in 2004 has launched the Independent intellectual property rights of the managed CRM (Customer relationship Management: CRM system) products, the launch of the product marks the birth of professional SaaS enterprises in China. Although the SaaS model has been successful, it is mainly focused on areas such as CRM and HCM (Human capital Management: Human resources management Systems).

In recent years, many other enterprise software vendors, including traditional ERP software companies, have been forced to consider new internet-based software delivery and payment models. including Oracle, SAP and Microsoft, China's Ufida, Kingdee and speed up.

Can the SaaS model succeed in the mainstream ERP field? To find the answer, you need to differentiate between SaaS and traditional ASP (creator Service Provider) patterns.

According to the AMR research Organization, SaaS includes the following features:

There is no large software licensing fee, usually a monthly fee.

Customers do not need it investments other than personal computers and Internet connections. Through the Internet, multi-client sharing (multi-tenant) a set of server hardware and software equipment.

Monthly fee includes service and upgrade fee.

ASP mode usually requires the customer to pay the software's permanent licensing fee at the time of purchase, and then pay the server management fee. There is usually an additional cost of software upgrades. Of course, on Demand (OnDemand) is not synonymous with SaaS.

SaaS Market in the ERP field

Corporate buyers are being lured by the benefits of SaaS. Most businesses are willing to pay for enterprise software based on usage, implementation speed, and low down payment. Of course, the enterprise usually wants to buy the ERP software to be able to run for 10-15 years, and has the software function, the industry plan and the software supplier's qualification request is very high. ERP systems are often used to support the operations of key businesses within an enterprise, and most enterprise managers do not overlook software features and software vendor qualifications because of software delivery patterns.

Let's take a look at today's market patterns:

NetSuite: One of the earliest ERP software vendors in SaaS mode. Provide financial, customer, procurement, payroll, inventory and other modules, but also provide a limited function of production management module. NetSuite has not yet been listed.

Salesforce: At the beginning of the year launched a landmark internet-based software development and integration platform (the domestic 800CRM also launched a similar platform), and partners, with the introduction of a large number of SaaS model ERP modules. Salesforce was successfully listed on the New York Stock Exchange in 2004.

Microsoft: Microsoft has launched a SPLA partnership program in Western markets where partners provide SaaS-mode ERP products to end-users by running Microsoft's enterprise management software. The plan is progressing slowly, according to the AMR Research Institute.

SAP: Poweredby SAP products for partners, but traditional ASP mode. Recently introduced the Hybridsaas model, similar to Microsoft's SPLA program.

Oracle On-demand: After acquiring Siebel, it continues its SaaS-mode CRM product line. But Oracle still retains ASP mode on ERP products. Oracle's recent press release claims that it is not enthusiastic about SaaS-mode ERP products, at least not publicly, with static braking.

Domestic Ufida, Kingdee and fast tatsu manufacturers are developing or already have a SaaS model products, but in the marketing or use of similar to Oracle's cautious approach. The main hurdle is that many ERP suppliers are reluctant to accept monthly payments, reducing current sales. Microsoft, Oracle and SAP are still testing the water for SaaS.

SaaS will continue to evolve

Interest in SaaS continues to grow, and many SaaS professional vendors who specialize in CRM and HCM have been successful. In the next few years, more and more ERP vendors will be like Microsoft, Oracle and SAP, in the sale of traditional software licensing, to provide customers with SaaS as an additional way of software delivery. If the ERP vendors start to provide SaaS, they will be the first to start using a company with a strong self-control, a new company that is eager to launch an ERP, or a firm with limited cash flow and a need for ERP.

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