BlogSaaS ERP vs. Cloud ERP – a complete comparison
Dec. 29, 2022

SaaS ERP vs. Cloud ERP – a complete comparison

Keren Sherer Taiber

Chief Product Officer

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Enterprise resource planning (ERP) systems are essential for businesses of all sizes across industry verticals. They protect your sensitive business data and allow you to conduct everyday business operations efficiently and smoothly. However, when choosing an ERP solution, you will need to choose between on-premises, software-as-a-service (SaaS), or cloud ERP deployment methods.

What are the differences between on-premises, cloud, and SaaS ERP?

On the surface, the difference between on-premises ERP and cloud/SaaS ERP is quite clear. On-premise ERP is deployed on your own IT infrastructure, allowing you to supervise and secure data with total control. However, you will also need a dedicated IT team to maintain and operate it and fix bugs as they appear.

On the other hand, cloud and SaaS ERP are delivered over the internet. They are easily customizable, come with support for maintenance and bug fixes, and are updated regularly by the vendor. Consequently, Cloud and SaaS ERP are the preferred deployment methods for both small and large businesses. In fact, many people use the words “Cloud ERP” and “SaaS ERP” interchangeably.

Although Cloud and SaaS ERP have many things in common, some significant differences exist. In this article, we take a quick look at how Cloud and SaaS ERP compare against each other and which is more suitable for your needs.

Cloud ERP

SaaS ERP

Pay an upfront fee or choose a monthly/annual plan

Pay a monthly or yearly fee and start using the ERP without installation.

Cloud ERP servers are located in offsite data centers.

The SaaS ERP provider or another third-party vendor may own servers.

Cloud ERP does not have hidden costs, and your expenses are discussed before deployment.

If you add more users or modules, your costs can climb up quickly.

A single-tenant cloud ERP offers users more control over data, as you can control your maintenance and upgrades, including any customizations done to the software.

Multi-tenant SaaS ERP is on the other end of the spectrum. The vendor handles all your patches, upgrades, and maintenance and is responsible for software and hardware.

You may sometimes require an in-house IT team. Vendor-based IT support cost extra.

You do not have to invest in an in-house IT team.

A Cloud ERP is a better option if your business is unique and has many customizations to make.

If you run a small business and have just started to explore the world of ERP, you might benefit from a SaaS ERP.

A Cloud ERP gives you more control while giving you access to IT and customer support staff when needed. But this may cost extra.

Your ERP is always up-to-date, giving you a competitive edge. Your SaaS vendor takes care of customer support, IT support, etc.

Excellent security features, thanks to single tenancy.

Security-related concerns may appear if your vendor is unreliable.

Can be customized to comply with HIPAA and GDPR

SaaS ERP solutions often automatically comply with regulatory bodies such as HIPAA and GDPR. As they are always up date, without intervention.

Cloud ERP is perfect for both nascent and seasoned companies

Cloud ERP has all the benefits of on-premise ERP and is perfect for growing businesses. It is secure, risk-free, and flexible in terms of scaling. Cloud ERP allows you to focus on running your business instead of spending time on IT administration. A good cloud ERP solution will offer you the following features in addition to what you can expect from an on-premise solution:

  • Significantly less expensive than on-premise solutions
  • Automatic upgrades of your ERP solution
  • Fast and seamless data migration process
  • Ability to customize, scale, and add third-party integrations

SaaS ERP is perfect for smaller startups

SaaS ERP has the advantage of quicker deployment and reduced upfront costs. However, in comparison to Cloud ERP, it offers fewer opportunities for customization. Multiple tenants use SaaS ERP solutions, making it much cheaper and accessible to smaller and medium-sized businesses. You can easily predict your operating expenses as there are no hidden costs. However, costs can increase when you add modules or scale in terms of users. Here are a few things to bear in mind before choosing SaaS ERP.

  • Poses challenges if you move data from on-premises ERP to a cloud ERP.
  • It is cheaper and easier to access, and you can also add features and users as your business grows.
  • Access to all the primary ERP modules and the freedom to add or remove modules depending on your requirements

Priority’s Cloud ERP hits the sweet spot

Priority’s Cloud ERP product allows you to work anywhere, anytime. You and your staff can work on any device. All your data is synchronized in real-time over cloud servers, eliminating duplicate or redundant entries. You will always have access to an up-to-date database stored on a centralized server accessible online. In fact, it combines the best of both worlds – the customizability of Cloud ERP and the ease-of-use of SaaS ERP. Priority’s Cloud ERP offers the following features:

  • Real-time visibility of your business processes.
  • Global access to tools you need to manage your business on any device, anywhere
  • Your ERP is ready to use in less time than on-premise systems
  • Regular software updates and bug fixes
  • A flat-rate fee that reduces your ERP implementation costs
  • Compliant with SOC1 and ISO 27001, which ensures enhanced security
  • Access to top-notch customer support round the clock

In addition to Financials, CRM & Sales, Supply Chain Management, and Human Resource Management, you can also add other modules such as WMS, Project Management, Payments, Business Intelligence, Time & Attendance andEquipment Rental. In short, you get everything you need to run a business smoothly and successfully without ever having to install an ERP on your IT infrastructure.

To find out more about Priority’s Cloud ERP and how it can help you take your business to the next level, contact us today.

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In this article we've covered

ERP
Cloud ERP
ERP Trends

The Author

Keren Sherer Taiber

Chief Product Officer

Since joining Priority in 1998, Keren has progressed through several leadership positions and now leads as the Director of Product Strategy. She has an industrial engineering degree and an MBA from Tel Aviv University. Her journey reflects a consistent dedication to advancement and excellence.

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Frequently Asked Questions

Product Information

What is Priority's Cloud ERP and how does it work?

Priority's Cloud ERP is a cloud-based enterprise resource planning solution that enables businesses to manage operations from anywhere, on any device. It synchronizes data in real-time over cloud servers, eliminating duplicate entries and providing access to an up-to-date, centralized database. The system combines the customizability of Cloud ERP with the ease-of-use of SaaS ERP, offering features like real-time visibility, global access, regular updates, and top-notch customer support. Learn more.

What modules and features are available in Priority's Cloud ERP?

Priority's Cloud ERP includes modules for Financials, CRM & Sales, Supply Chain Management, Human Resource Management, Warehouse Management (WMS), Project Management, Payments, Business Intelligence, Time & Attendance, and Equipment Rental. These modules can be added or removed as needed, providing flexibility for businesses to tailor the system to their requirements. See all modules.

How does Priority's Cloud ERP differ from SaaS ERP?

While both Cloud ERP and SaaS ERP are delivered over the internet and updated regularly, Priority's Cloud ERP offers greater customizability and control, including single-tenant options for enhanced security and compliance. SaaS ERP is typically multi-tenant, easier to deploy, and ideal for smaller businesses, but may offer fewer customization options. Priority's Cloud ERP combines the best of both, providing flexibility, scalability, and ease of use. Read the full comparison.

Features & Capabilities

What are the key capabilities and benefits of Priority's Cloud ERP?

Key capabilities include integration simplicity, no-code customizations, advanced analytics, industry-specific features, automation, and scalability. Benefits include enhanced operational efficiency, cost reduction, improved decision-making, long-term adaptability, and increased customer satisfaction. Learn more.

Does Priority support industry-specific requirements?

Yes, Priority offers tailored functionalities for industries such as retail, manufacturing, healthcare, and hospitality. These industry-specific features ensure businesses receive solutions designed for their unique needs, unlike generic ERP systems. See industry solutions.

How does Priority handle automation and analytics?

Priority provides built-in workflows and AI recommendations to automate repetitive tasks and reduce manual errors. It also offers hundreds of pre-defined reports and no-code reporting tools, enabling actionable insights for better decision-making. Explore analytics.

Use Cases & Benefits

Who can benefit from Priority's Cloud ERP?

Priority's Cloud ERP is ideal for CFOs, IT Directors, Operations Leaders, and organizations seeking a reliable, scalable ERP system that avoids the risks of end-of-life software and extensive customization. It is suitable for businesses across industries looking to streamline operations and improve efficiency. See Priority ERP Overview.

What business impact can customers expect from using Priority?

Customers can expect measurable improvements in operational efficiency, cost reduction, and decision-making. Priority's features help businesses achieve long-term adaptability and value, with streamlined workflows, actionable analytics, and scalable cloud-based solutions. Learn more.

What customer pain points does Priority solve?

Priority addresses poor quality control, lack of data flow, poor inventory management, outdated or end-of-life ERP systems, manual processes, fragmented data, customer frustration, operational inefficiencies, and complex order fulfillment. It provides real-time traceability, centralized data, automation, and end-to-end order management to resolve these challenges. See more.

Competition & Comparison

How does Priority ERP compare to Microsoft Dynamics 365?

Microsoft Dynamics 365 requires heavy customization for industry needs and lacks smooth migration from Business Central. Priority ERP is user-friendly, flexible, customizable without IT support, and ensures compliance with FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2. See comparison.

How does Priority ERP compare to SAP Business One?

SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, maintains the same platform (no forced migrations), and supports true multi-company operations with automatic inter-company processes. Learn more.

How does Priority ERP compare to NetSuite?

NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and has no lock-in contracts while delivering industry-specific functionality. See more.

How does Priority ERP compare to Acumatica?

Acumatica focuses on cloud ERP but lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, a native scalable WMS, ease of use, and flexible quarterly commitments with no lock-in. See more.

How does Priority ERP compare to Odoo?

Odoo is open-source but has scalability limits, performance issues, and high implementation failure rates. Priority ERP provides structured implementation, scalability, proven methodologies, experienced partners, and quick user adoption. See more.

Implementation & Adoption

How long does it take to implement Priority ERP and how easy is it to start?

Implementation times vary: industry-specific off-the-shelf solutions can be deployed within a few weeks, while tailored workflows, multi-site setups, or legacy data migration typically take 1-6 months. Priority offers professional services for configuration, data migration, and training, as well as self-service resources like Priority Xpert. Learn more.

What training and technical support is available to help customers get started?

Priority provides professional services for configuration, data migration, and training during implementation. Customers have access to tailored on-site and virtual training sessions, as well as self-service resources like Priority Xpert, which includes a knowledge base, video tutorials, and support tools. Learn more.

Support & Maintenance

What customer service or support is available after purchasing Priority?

Priority offers comprehensive post-purchase support, including troubleshooting, system optimization, software updates, customizations, and access to Priority Xpert. Multilingual support resources are available, including documentation, FAQs, and direct contact options. Visit Priority's Support Page.

How does Priority handle maintenance, upgrades, and troubleshooting?

Priority aiERP provides automatic software updates and zero-downtime maintenance. SaaS customers receive updates outside work hours, with upgrades tested before deployment. On-premises customers install updates themselves. Priority offers troubleshooting and fault remediation for the latest software versions, and extended support is available for an additional fee. Learn more.

Customer Proof & Recognition

Who are some of Priority's customers?

Priority is trusted by leading companies across industries, including Ace Hardware, ALDO, Kiko Milano, Estee Lauder, Columbia, Guess, Adidas, Hoka, Toyota, Flex, Dunlop, Electra, IAI North America, Outbrain, Brinks, eToro, Gevasol, Checkmarx, GSK, and Teva. See more customers.

What feedback have customers shared about Priority's ease of use?

Customers consistently praise Priority for its flexibility, high customizability, and intuitive interface. Allan Dyson (Merley Paper Converters) noted full process automation and ease of use. Martyn Young (Cherwell Laboratories) found Priority matched their needs out of the box. Tomer Lebel (Cyberint) stated Priority is much easier and simpler to operate than other leading ERP solutions. Read more testimonials.