Why ERP Software is Shifting to Subscription Based Deployments

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According to a Forrester Research Report, there will be a gradual shift to subscription based ERP software from the standard licensing model over the next five years. We have referenced this Forrester Research Report in another article: What the move to subscription based ERP means for businesses in 2011. But for this article, we would like to explore why this shift was bound to happen.

Consumers everywhere are becoming more familiar and comfortable with subscriptions, whether it is for unlimited access to movies or software deployment. Some may be surprised to know that the cloud is really not new, but we think it’s gaining momentum now because of a few factors:

Technology Adoption: The next generation is technically savvy and gets excited about new technology, easily adopting the next big thing. It has not always been this way as just a few years ago, people rejected new technology. For example, how long did it take you to finally give in and buy a DVD instead of a video tape? Granted there are other factors, such as price and availability that may have stopped you, but there usually is a time lapse for new technology to gain momentum. We now feel subscription based ERP is in the mainstream with huge momentum. Five years from now, this will be old news.

Need for Flexibility: Coming out of the recession, businesses are determined to beat out their competition by leveraging flexible ERP solutions that can grow and adapt to their needs. Subscription deployments offer this flexibility because updates or upgrades can usually be done via the cloud, resulting in a quicker, more streamlined process with little interruption of business.

Higher Security and Guaranteed Uptime: The options are also much better than they were in the past. For example, Microsoft offers 99.9% guaranteed uptime. Security is also more encompassing with access to a secured world class infrastructure.

Contact us at SSi to explore the deployment model that works best for your organization. Whether you’re comfortable with subscription based software or not, a proper assessment will get you started on the right track.

By SSi Consulting, Maryland Microsoft Dynamics GP Partner

SSi Consulting is a Gold-Certified partner serving customers in the Mid-Atlantic area offering hosted Microsoft Dynamics GP and Microsoft Dynamics SL at very low monthly rates. Whether you need accounting software, job cost accounting, help with your wholesale/distribution supply chain, or business management solutions for non-profits, SSi is your total solution provider.

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