What’s a hosted ERP?

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Hosted ERP is an Internet-based tool that helps businesses manage their processes. The software is maintained by a third party, making it ideal for small businesses. It offers flexibility, customization, and cost savings, and can be accessed from anywhere. Some vendors offer free or paid versions with varying limitations.

A hosted enterprise resource planning (ERP) program is an Internet-based tool that uses computer technology to help companies manage their business processes, from accounting to inventory to human resources. With a hosted ERP, the software is maintained by a third party, the ERP vendor, rather than being installed on the client’s computers. The client accesses the system via the Internet.

This type of ERP is considered by many people to be an ideal solution for small businesses that may not have the financial and human resources to support their ERP system. With a hosted ERP, customers do not incur the additional cost of hiring information technology (IT) professionals to maintain the system or the expense of purchasing a mainframe computer to run the system. They also don’t have to pay software license fees.

A hosted ERP offers more flexibility than installing the software on your own business system, so customers don’t have to worry about continually scaling the software as their business needs change. It’s relatively easy to simply buy more components if a business wants to add more features. Businesses also save money because they can buy only the features they need, rather than investing in complex and expensive systems that are more than they need or can handle. They also don’t have to worry about replacing the system when they outgrow it or when better systems become available. Instead, the ERP vendor updates the system.

Customers can often customize a hosted ERP for more efficient viewing and use by specifying what features they want in each component. Some hosted ERP solutions can also be synchronized with email programs or devices such as personal digital assistants (PDAs) and cell phones, making the program accessible anywhere, anytime. A hosted ERP allows users to manage their business processes from any computer, so you can do everything from tracking order requests to managing and monitoring workflow.

Many vendors have long offered hosted ERP services as part of larger IT outsourcing packages, but offering standalone ERP is a more recent trend. Some companies offer a free hosted ERP and others charge a monthly fee for access. The monthly fee can be a flat rate or can vary based on the number of users.

Free versions of hosted ERPs may have limitations, such as only having access to one person at a time. Even the paid versions may not be suitable for all businesses. Some providers simply offer a scaled-down version of their more comprehensive systems for small businesses, while other vendors offer solutions built specifically for small businesses.




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