Cloud vs SaaS: Which delivers the most benefits?
A few years ago, software deployment options were barely considered. Accounting solutions were predominantly licenced and deployed onsite, or via a third party. “Cloud” wasn’t part of the business lingo, and “SaaS” was either unheard of or poorly understood. While complementary solutions like Customer Relationship Management (CRM) were headed in that direction, entrusting the transactional system of record of your business […]


SaaS vs cloud: Is there a difference?
Non-technical ERP end–users often don’t know, or even need to know, the different deployment options or how they’re paid for. It is, however, critical to understand the various options in order to maximise the benefits. Let’s start with a basic definition of cloud and SaaS. Many use these two terms interchangeably, but there are some important differences. So, let’s distinguish between the two:- Cloud refers to access to computing, software, and storage of data over a network (usually the internet). You may have purchased a license for the software and installed it on your own computers or a third party’s, but your access is through the Internet and, therefore, through the “cloud,” whether private or public.
- SaaS is exactly what is implied by the acronym: Software delivered as a service. It is not delivered on a drive or other media to be loaded on your own (or a third party’s) computer. It is typically subscription-based, and does not reside on your computers at all.
Deployment options
Deployments can be categorised as follows:- Software as a Service (SaaS): Software is delivered only as a service, not on a drive or other media to be loaded on your own (or another party’s) computer.
- Third party hosted: Software is licensed by you, but you pay another party to manage and maintain (host) hardware and software.
- Hybrid: Some parts are licensed and maintained on-site and others (e.g. add-on modules) are SaaS.
- Hosted and managed by your ERP vendor: Software is licensed by you, but you pay your ERP vendor to manage and maintain (host) hardware and software.
- Traditional licensed on-site: You license the software and are responsible for managing and maintaining it on your own premises.
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