There are several advantages of Cloud/SaaS over On-premise ERP software (or any software solution).  Before we get into the benefits, let us look at the basics:

Definition according to Wikipedia - SaaS - Software as a service sometimes referred to as "on-demand software", is a software delivery model in which software and associated data are centrally hosted on the cloud. SaaS is typically accessed by users using a thin client via a web browser.

According to me one of the biggest advantages of SaaS is its pay as you use model, there is minimum or no upfront cost. This advantage is most beneficial to SMEs.

We can categorize all the benefits of SaaS over On-Premise into two, tangible (measurable) benefits and intangible (strategic/not measurable) benefits.  

Tangible Benefits of SaaS ERP:

·         No Upfront cost: pay  as you use model
·         Availability: up to 99.999%  uptime
·         Reliability : Automatic back up & data security (physical as well as digital)
·         Automatic Upgrades: no upgrades  requires
·         Faster & easier deployment
·         Fewer IT resources required
·         Minimum IT hardware/software required
·         Better ROI/TCO
·         No AMC required
·         Energy efficient ( greener solution)
·         Better productivity & performance
·         Lower operation cost & better bottom line

Intangible Benefits of SaaS ERP:

·         Better accessibly (anytime, anywhere)
·         Quicker scalability
·         Customer satisfaction
·         Employee satisfaction

While we are discussing the advantages of SaaS over On-Premise solution, let us also look at the disadvantages of SaaS (which are the advantages of On-Premise):

·         Very limited control over the software/data
·         Minimum customization available