Is SaaS ERP Profitable?
SaaS has been a much more popular option for companies looking to cut costs while trying to maintain the same level of service and quality. However, SaaS providers may not benefit as much as people think. SaaS profitability has long been an issue associated with SaaS Software. The lower price of SaaS Software often makes sustaining a SaaS product hard to do. SaaS ERP is one branch of SaaS Software that is frequently questioned regarding its profitability.
Profitability has long been a concern for potential SaaS ERP providers as providers recognize the high costs of implementation and selling the product. With these high costs comes a limited chance to profit as there is a limited amount that can be charged for their SaaS products. However, SaaS ERP providers continue to push on. Companies are however limiting budgets geared towards SaaS ERP software. Companies such as SAP have reduced funding for their project as they think of how they plan on making money off their product.
SaaS Software will continue to be a popular option for businesses. However, the question is whether or not it is worth the time and effort of SaaS ERP providers to continue providing it. For more information on this article, you can read the full article found here.
Saas ERP software beneficial for both small companies as well as large one since traditional ERP systems are installed on company servers and the company actually owns the software,they typically have more flexibility in customizing and perfectly fit their needs.