Surprisingly, or not, on-premise software is on the decline.  SaaS enterprise applications are expected to grow five times as much through 2018, according to a recent IDC worldwide survey reported on the Forbes website.

SaaS growth through 2018…

In fact, when it comes to customer relationship management (CRM) and enterprise resource planning (ERP) software the revenue growth is expected to grow at a 17.6% clip through 2018. This compares with a forecasted growth rate of 3.1% for on-premise applications. Furthermore, by 2018 almost 28% of the global “enterprise applications market” is expected to be SaaS-based.

On-premise still favored by some sectors in enterprise resource planning software…

Of course, this is not the end of on-premise CRM/ERP platforms and sectors like manufacturing, shipping and engineering will continue to favor such installations. Still, in 2013 the choice by manufacturing to use SaaS represented a mere 7.3% of “operations and manufacturing enterprise applications.” By 2018, that should increase to 10.30% of the total manufacturing sector.

Microsoft continues to offer Dynamics CRM/ERP as an on-premise and online choice. Generally, companies opting for on-premise installs have an IT staff, or an outsourced service, to maintain their systems; too, such business have budgets necessary to invest in the right hardware and software licenses.

Perhaps the biggest factor in keeping with an on-premise enterprise resource planning software, for example, is the high level of customization that may have occurred over the years with future add-ons foreseen as well.

Online users of Dynamics CRM, for example, forego the expense of hardware and license fees, while eliminating the need for IT staff, our outsourcing, to handle maintenance and upgrades.

Furthermore, cloud-based CRM/ERP is up and running quicker and does not require backing up the system.

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