I read an interesting article today from Aberdeen research. It went into great detail on what is really driving companies towards SaaS (Software as a Service)/Hosted ERP solutions vs. the traditional On-Premise solutions.
For the record, the number of companies installing On-Premise ERP solutions still far outweighs the number going live with a hosted solution, but that trend is slowly reversing itself.
The number one driver for implementing an ERP in the Small-to-Medium Business market is to reduce costs (no surprise there). Thus the number one impetus which would push a company to invest in ERP is finding an affordable solution at minimal risk. This is where the SaaS model fits in quite well.
SaaS total cost of ownership is less than On-Premise when you consider backups, hardware, IT staff, upgrades and service packs (bug fixes). A lot of companies are looking to outsource providers to host their ERP systems and take care of the "maintenance" of the system that their own staff would traditionally have to handle. The main cost considerations that drive the appeal of SaaS are :
- Lower total cost of ownership
- Reduces the cost and efforts of upgrades
- Lower up front costs
- Company has limited IT staff and no interest in hiring more
- Seeking the best fit solution to their business needs
- No emotional attachment to having it in-house
- Strategy to focus resources elsewhere
Because of these driving factors, the number of companies considering SaaS ERP has jumped 61% from 2009 to 2010 (source : Aberdeen SaaS ERP : Trends and Observations 2010).
WebSan offers both Hosted and On-Premise Dynamics GP, to address the concerns of Clients looking for options.
Please contact us for more information.
Almost every single company I speak with today asks me about our hosting services for Dynamics GP. I think it's due to a few factors :
- The economy is forcing many companies to lean out costs in non-core areas. Maintaining IT equipment, backups, and service pack upgrades are not exactly value-add for many organizations. Hosting your ERP system in the "Cloud" alleviates those responsibilities to a third party that you can hold accountable.
- Internet access is becoming more and more reliable every day. Every single prospective Client asks me about disaster recovery plans. The fact of the matter is that our ability to recover from a disaster is probably far better than any Client we have. One simple alternative a laptop with a battery and an internet stick from a mobile phone supplier. The odds are that our hosted system will be up...Clients just need a way to get onto the internet.
- The environment and sustainability is becoming more important every day. Did you know that subscribing to an ERP system, rather than installing it on your local server actually saves energy? All of our Clients' systems are shared on virtualized servers, thereby reducing electricity and the carbon footprint of the entire solution.
So there are some key benefits of looking to the "Cloud" for your ERP needs. If you think it's for you, don't hesitate to give us a ring.
Executives from all industries are keeping a close eye on the economy these days. While the Canadian economy seems to be recovering, there is no collective sigh of relief in the US.
So while some companies "hunker down" and reduce all expenses, leading companies are looking to invest in technology according to the following strategies (source Aberdeen© Reports):
- Streamline and accelerate processes to improve efficiency and productivity
- Standardize business processes
- Optimize the use of current capacity (both personnel and equipment)
- Provide visibility to business processes across functions and departments
- Modernize technology infrastructure and applications
In times of economic turmoil, those companies that invest now in preparation for a turnaround are more likely to outperform the competition after the recession is over.
Many companies are turning to "hosted" or SaaS (Software as a Service) solutions to reduce the capital expenditure typically required to purchase Enterprise software packages. Our strategy has been to support both implementation methodologies, On-Premise and Hosted. The Hosted solution can reduce a Client's investment by over 60% and accelerate the ROI dramatically.
The software acquired as a Hosted solution is identical to that of the On-Premise solution.
If you're interested in learning more, please feel free to contact us.
There is much heated debate about CRM systems in the marketplace. Many companies have invested thousands, if not hundreds of thousands of dollars into a new CRM system that the sales reps won't touch with a 10-foot pole.
The funny irony is that all companies have customers and all companies have some way of keeping information in a spreadsheet or accounting system of who their customers are and some characteristics of that customer. So why is it so difficult for companies to make the quantum leap forward to formalize their CRM processes?
What companies need to keep in mind when looking to formalize their CRM practices with an investment in technology is that the technology should facilitate their sales process and improve key sales metrics like:
- suspect to lead close ratios
- sales revenue per rep
- more effective use of marketing $
We specialize in both Salesforce.com and MS Dynamics CRM. Both are very capable systems, but what makes the difference is how the system is implemented and how it is inculcated into the organization to maximize adoption of the new system.
Contact us if you're thinking about an investment in CRM and we can help!
I see a lot of Clients attempting various methodologies to research and find new software.
One of the great resources that I've recommended is : FindAccountingSoftware.com
This is a website whereby you can find objective, 3rd party information on many systems offered (there are many, believe me!). We've had numerous Clients find us through that website and they're quite happy with their selection of MS Dynamics GP and WebSan Solutions Inc.
I encounter prospective Clients every day who ask me: why?
- Why do I need a new system?
- Why do I need to invest in new software?
- Why WebSan?
I cannot come up with "one-size-fits all" answer for everyone, but what I can tell you is the following:
- Companies that leverage Enterprise software to run their business see a significant improvement in their financial performance. This can manifest itself operationally in many ways, but typically it's a reduction in outstanding Receivables, growth in operating margin and lower overhead resources in the Finance and administration departments.
- According to a recent Aberdeen© report, best in class companies saw:
- 22% reduction in operating costs
- 20% reduction in administrative costs
- 17% reduction in inventory
- 19% improvement in complete and on-time delivery
Organizations are always looking to be more competitive and reduce costs. A solid investment in technology with the right Partner can make all the difference in the world.
WebSan Solutions Inc. is a Microsoft Dynamics Certified Partner specializing in MS Dynamics GP and Hosted MS Dynamics GP. Dynamics is a top-rated Enterprise software system that has over 40,000 installs in North America.
Contact us for inquiries.
FOR IMMEDIATE RELEASE
PR Log (Press Release) – Feb 01, 2010 – WebSan Solutions Inc. an Aurora, ON based Certified MS Dynamics Partner, announces expanded Salesforce.com service offerings.
"WebSan has been working with Salesforce.com as a Referral partner for a number of years and have successfully implemented the product numerous times. Our expertise in the ERP/CRM space and specifically with MS Dynamics GP, has resulted in a number of very interesting and complex integration projects between the products. Naturally it made sense to formalize our relationship with SFDC so we can be kept abreast of the leading developments and the product roadmap at SFDC." stated Andrew King, Senior Partner.
Andrew continued that "This new SFDC offering allow us to complement and round out our other CRM service offering, such as Microsoft CRM, and provide service to a customer with which ever leading CRM solution that best fits their requirements. "
WebSan also has partnered with Scribe Software, which is an integration tool between Salesforce.com and Dynamics GP.
"The combination of a popular CRM system like Salesforce.com and a top of the line ERP like MS Dynamics GP makes for a potent combination. Integrating the two systems opens up unlimited possibilities and tremendous efficiencies for our clients." stated Andrew.
Also see press release on PR LOG here : http://www.prlog.org/10510825-websan-solutions-inc-expands-salesforcecom-service-offering.html
Microsoft is offering significant discounts to customers who migrate from Intuit Quickbooks, Exact (Macola) and Sage (all editions) to Dynamics GP.
Contact us for more details!
In an independent analysis, Nucleus Research studied various customers who had implemented either:
- Microsoft Dynamics GP
- Oracle E-Business Suite
They found that :
"Microsoft Dynamics GP has a lower TCO (Total Cost of Ownership) and delivers a positive ROI by limiting costs while delivering significant returns. Microsoft Dynamics GP takes less time to deploy and fewer resources to support than other solutions."
For more information, see the following presentation for more details:
There's a lot of debate out there on forums regarding hosted ERP solutions.
Obviously, much success has been had with Software as a Service (SaaS) in the CRM (Customer Relationship Management) space, but CRM really isn't "mission critical." If a company chooses to outsource mission critical applications, such as shipping software, WMS, or manufacturing software, then what will happen if the company loses their internet connection?
There are many pros to going with a fully hosted solution over an on-premise solution. They include, but are not limited to:
- The initial cost for the ERP solution is usually significantly less than an on-premise solution.
- Total cost of ownership (TCO) over time can still be less than on-premise, depending on the outsource provider and their capabilities
- The initial implementation time line can also be accelerated by hosting because much of the underlying configuration infrastructure can be shared, therefore consulting time is minimized
- Internal IT support staff is not required for a hosted solution
- The hosting provider takes care of system updates, patches, regression testing, etc.
The one advantage on-premise solutions have over hosted is that they are indeed, on the premises of the client. They don't go down unless your business does, and then, you've got bigger fish to fry.
That being said, if you could combine the benefits of on-premise with the benefits of hosted, in a hybrid solution, then you would have the best of both worlds.
Look for a solution that offers to have your mission critical applications on site, like:
- Warehouse Management System
- Shipping/Manifest System
- Manufacturing Data Collection (work order) System
The rest of the ERP system can be hosted. That way, if your network does go down, your mission critical applications are still up and running and your financial transactions will simply wait until connectivity to the main Accounting system is restored.
A hybrid hosted and on-premise solution may be the answer you're looking for!
We've combined the best of both worlds for our clients. Contact us now to learn more about our hybrid Microsoft Dynamics Great Plains (GP) solutions.