What are the risks and cons of the SaaS based model purchasing in an organization ?

08.10.18 05:51 AM Comment(s) By alokjasmatiya99

SaaS based organization

There are pros and cons of almost everything in this world. ERP industry is also not deprived from it. In this post we will try to figure it out that what kind of cons and risks are associated with the purchase of SAAS software -

  • When an ERP software has been purchased from a selected vendor by any business  - large or small, there are some upfront licensing fees attached with the software. There are other type of software costs like - implementation and configuration costs are also attached with it. It takes enormous capital, money and finance to take the implementation of erp software.

 

  • The other risk factor associated with the purchase of new ERP software is the ongoing operating cost for an organization. Because of the ERP software cost is based upon the “pay as you go” model, so it is obvious tat how much an organization will grow, the modular cost of the software will also increase.

 

  • Many companies still have strange fear from the network breach which can become a significant cause of the loss of sensitive data. This is a very strange problem. So companies require a great focus on the data security and vulnerability assessment. This requires a great bit of investment.

 

  • Though a great success level of an ERP software in an organization, it requires proper erp software integration in the back office administration. It has a great deal of investment and it brings a  new set of challenges with it.

Integration and implementation of the new ERP software sounds like a great deal of investment and with full of challenges because in real it is. To make a successful lead from the ERP software, it is needed for the top level management to take it not only as a project, but as a business so that a business can feel a great deal of revenue potential and earning capacity.

Hope you have liked this post ! Thanks for reading the post !


reference links - 

http://motog2tom.soup.io/post/664167782/What-is-the-cost-and-pros-of

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