Should I Purchase my ERP or Rent it?
Enterprise resource planning software is more essential than ever before and if you want to gain an edge over your competitors, you must ensure that you are making the most out of your systems. For small to medium-sized businesses, Midsize Enterprise Resource Planning (ERP) software is a worthy upgrade from less encompassing programs like QuickBooks.
However, using ERP software involves a number of decisions such as determining whether renting on a monthly basis or if purchasing is best for your business. Here are a few tips for choosing whether to rent or buy your ERP software.
Which is Cheaper?
Ultimately, one option will be more cost-effective for your particular business in the long run and saving money on software gives you the flexibility to spend elsewhere. If you know which package you want to purchase and want to commit for the long term, it may be best to buy it outright.
When you buy, you own your system and your data. Typically, you get a return for your investment within 5 years. When you pay a monthly fee for a SaaS-based solution, your data is hosted in the cloud environment and you pay a recurring monthly fee.
The convenience of a rented solution is not dealing with, worrying about, purchasing or maintaining infrastructure. To answer which path is cheaper, compare cost over 5 years. In most cases, purchased solutions end up being the less expensive alternative.
Is Flexibility Important?
By renting your ERP software, there are limits to customizations. For those new to ERP, having the ability to report on data from within the system is crucial. Having the ability to add custom reporting fields is a benefit of a purchased solution. Work with an experienced provider who can assess your needs and determine which system works best for your organization.
Are There Options?
The software economy is moving toward a model where applications tend to be rented or cloud-based. However, a one time capital expenditure may be more suited for companies that prefer not to commit to a monthly fee.
If you are interested in taking advantage of a cloud solution, purchased solutions can be placed in a hosted environment, and you won’t have to worry about infrastructure expenses. This can be a valuable middle ground for businesses that want to own their ERP but avoid the overhead of on-premise infrastructure.
The Right Size For You
ERP software is valuable for businesses of all sizes. This is because, as it allows owners and managers to focus on what they do best instead of dealing with financial nuances and logistics.
However, it is important to choose the right package for you. You have to decide whether it is best to make a one-time purchase and maintain a program, or rent it and pay ongoing costs.
Buy or Rent ERP: Making the Right Decision
Choosing whether to buy or rent ERP software depends on your business’s requirements, budget, and operational goals. Renting provides flexibility and avoids large upfront costs, but buying offers long term savings and greter control over customizations. Understanding the benefits of each option is important to making an informed decision.
Tailored ERP Solutions for Your Unique Business Needs with Mayer Group
At Mayer Group, we specialize in helping businesses navigate the complexities of ERP implementation. Whether you’re looking to purchase a full-scale ERP solution or prefer the flexibility of a SaaS model, we can help personalize the right ERP system for your needs. Contact us today to explore how Acumatica Cloud ERP can optimize your business processes and support your long-term growth strategy.
