When we meet with prospective customers, one of the first topics we address is whether a cloud-based Software as a Service (SaaS) or On-Premise solution is the best fit for their needs. Usually, the best business management suite is one which is cloud-based. Yet some prospects we connect with have met with other ERP VAR’s (Value Added Resellers) who recommend traditional software, hosted by an Application Service Provider (Fake Cloud).
Most of the prospects and customers we meet with are seeking to eliminate the challenges associated with on-premises software, and not just delegate management responsibilities to a managed services provider. Those solutions don’t deliver the business benefits of the cloud, such as cost reduction, broad accessibility and high availability.
The illustration below summarizes just a few of the differences between Real Cloud and Fake Cloud.
Before you acquire a business management application, ask these questions to determine whether a proposed solution is Real Cloud or Fake Cloud?
- Is the proposed business suite developed as an On-Premise solution, or was purpose-built as a SaaS application?
- Is the proposed solution hosted at a reputable service provider, and do they have compliance certifications your business needs, such as PCI-DSS, SSAE 16 Type II or ISO 27000?
- Is the proposed solution pre-installed, or will it need to be implemented before you can start configuring it for your business use?
- If the proposed solution has a web interface, is it accessible through a mobile or desktop application?
- Does your business need to maintain and/or upgrade the proposed solution? Does the ERP VAR handle maintenance and software upgrades, or does the application developer do the upgrades?
- Will any customizations the VAR partner completes carry forward with upgrades?
By purchasing an on-premise solution which is simply hosted at a hosting company, you experience many of the same problems as if you were hosting it yourself.
When NetSuite was founded in 1998, it was one of the first true cloud-based ERP solutions on the market. It was purpose-built as a SaaS business application for online data delivery. Business users never had to install or launch client applications on their computers. IT administrators never had to install software on a local server, and NetSuite customers have always paid only for the resources they use. Integrations, business-function configurations and customizations are much simpler to complete than legacy ERP systems. At SuiteWorld 2016, NetSuite founder Evan Goldberg told a story about how a client wanted to deploy NetSuite on their premises early in their relationship with the SaaS provider. Even Evan’s team knew there was a risk of losing a customer, they held firm on their vision regarding the benefits of a cloud-based SaaS solution. Ultimately, the customer found the NetSuite SaaS solution delivered on what Goldberg’s team promised.
The lines between Real Cloud and Fake Cloud are sometimes blurry. Make sure you get the clear answers to these questions to ensure you purchase the business suite which will meet your business goals, while delivering the true benefits of cloud-based information management.
NetSuite is the #1 Cloud ERP Solution in the world. The CloudGenius ERP team can consult with your business to define your long-term business data management strategy. We can customize NetSuite to your unique business needs, and establish integrations with your existing business applications. Ensure the application can evolve and scale as your business grows. Ready to get started? Let’s talk soon.