The viability of SaaS ERP for a business depends upon the size of the organization. While SaaS solutions have received alot of hype in the media, they are not yet full-fledged ERP systems.

Denise Ganly of Gartner Research notes in her 2008 analysis of SaaS ERP solutions, “SaaS ERP will continue to grow, particularly at the administrative level. However, the complexities of integrated ERP suites, along with a lack of credible vendor interest in this segment, means that truly integrated offerings (such as SaaS ERP suites) for large enterprises are unlikely to emerge in the near future."”

If you need basic ERP functionality for a mid-sized business, SaaS ERP may be an option. Monthly subscription costs reduce your up-front costs, and these systems require fewer in-house IT resources. Workday and NetSuite offer SaaS ERP solutions.