The times still change quickly.  We're no longer in the days of hearing about a faster computer processor or incredible software break-throughs every three or six months, but the changes are still there.  Because some of these changes are so quiet we have to be all the more vigilant.  Otherwise, we might end up being behind by months or even years.  The debate between installed software and on-demand is a good example of how old truths can blind us to the future.

There used to be no question that installed software - specifically enterprise resource planning software - was head and shoulders above anything an application service provider could offer.  The high cost of ERP solutions was justified by what the software could do, or at least that was the idea.  The thinking used to be that only large companies needed ERPs; this was convenient, since they were the only ones who could afford them.

Since then a number of things have changed.  ERPs are not as elegant a solution as everyone had hoped.  In fact, installing one could prove to be a gamble on just how much it cost and how well it worked.  Would it save millions or cost millions more than planned?  Would it be ready in six months or would bugs still be worked out in six years?   The ASP concept has matured into the software-as-a-service (or on-demand) model.  Utility that was once only available by purchasing the software and installing it on as many computers as needed is now available with a single service contract.   For the cost of buying a single copy of some software packages you can now have your entire office work with that software for a year.

Offering smaller, simpler software applications on-demand is easy enough.  It seems like common sense to think that providing something that can match an ERP must be something else, entirely.  That, too, is yesterday's common sense.  Today on-demand software can offer feature and functionality parity with enterprise solutions.   The obvious benefit?  Companies are able to adopt these solutions without going through a lengthy and costly on-premises deployment exercise.

The question has boiled down to, "Your computer or mine?"  Today, with properly developed software-as-a-service solutions like the ElectronicTendering System, it doesn't matter who's computer runs the software.  The beauty of SaaS and products like the ETS is that it will do its job for you without the smallest application being installed on your computers.  Installing a computer network, or updating it, or making certain all your computers, peripherals, and existing software are compatible with the new ERP are headaches of the past.

ERP does have its advantages and larger companies or government departments who can afford traditional installed software may still opt for them.  SaaS is not the answer for them.  However, it is the answer for small or medium sized departments who were once locked out of updating how they work because they didn't have the means to adopt an installed software approach.  If you've given up a software solution as being too expensive for you, look again.  Even if it isn't available on-demand yet, that may change sooner than you think.

If you're having trouble deciding between installed software and on-demand, give on-demand a try first.  Do this especially if the ERP you're looking at has an on-demand version.  Even if the on-demand version can't yet do everything the installed software can do, you'll get an excellent look at what it is you may be buying.

 

Sincerely,