SaaS ERP 101: What It Is, Top Vendors, and How to Get Started

SaaS ERP is an enterprise resource planning delivery model in which applications are centrally hosted by the vendor and accessed via the internet on a subscription basis, with infrastructure, upgrades, and system availability managed externally. It replaces fragmented files and legacy on-premises systems with a central platform for automating operations, synchronising data, and enabling real-time visibility across the business.

This shift reflects a broader market trend: the global ERP software market grew from $59 billion in 2022 and is projected to reach $97 billion by 2032, driven largely by the adoption of scalable cloud-based platforms (Precedence Research, 2025).

This guide explains why SaaS ERP replaced legacy systems, how the SaaS model works, which platforms lead the market, and what organisations should consider before implementation.

Why SaaS ERP Replaced Legacy ERP Systems

An outdated ERP system was once a major step forward for business automation. Today, however, many legacy ERP platforms struggle to meet modern operational requirements.

Compared to SaaS ERP systems, traditional on-premises solutions often limit data accessibility, slow decision-making, and increase operational friction. As competitors adopt cloud-based platforms that support faster scaling and real-time insights, organisations that remain on legacy ERP systems face a growing risk of falling behind.

The following diagram summarises the structural limitations and downstream business impacts that led organisations to move from legacy ERP systems to SaaS ERP platforms.

1. Limitations of legacy ERP systems

Many organisations experience growing friction as their existing ERP technology stack ages, particularly when operating on legacy systems rather than modern SaaS ERP platforms.

• Integration constraints: Legacy ERP systems often struggle to integrate with modern applications or external platforms. Connecting to cloud services, artificial intelligence (AI), analytics tools, or Internet of Things (IoT) platforms may require complex workarounds or custom development.
• Rigid customisation: Older systems frequently rely on rigid architectures. Even small workflow changes may require extensive coding or third-party support, increasing long-term development and maintenance costs.
• Scalability bottlenecks: As transaction volumes and data complexity grow, legacy ERP systems can become performance bottlenecks. Processes slow down, reporting becomes unreliable, and system limitations start shaping business decisions.
• Downtime and usability issues: Outdated systems are more prone to crashes, scheduled downtime, and slow response times. According to Gartner, IT downtime can cost from $5,600 per minute, depending on the industry and scope of business (reported by Atlassian). For SMEs, that number may be lower but still significant, up to $427 per minute. These limitations increase system instability and constrain how reliably teams can execute day-to-day operations. 
• Obsolete technology stacks: Many legacy ERPs run on outdated technology stacks that are no longer aligned with modern hardware, security standards, or integration frameworks. This increases exposure to performance issues, security vulnerabilities, and compatibility risks.

2. Operational and financial costs of legacy ERP

As these structural limitations compound over time, legacy ERP systems also generate high operational and financial costs that are not immediately visible in licensing or support fees.

• Reduced operational productivity: Legacy ERP platforms typically lack the automation and workflow optimisation found in modern SaaS ERP solutions. Manual workarounds and duplicated processes consume time and increase error rates. Research from Genius ERP indicates that businesses adopting modern ERP platforms can achieve up to a 23% reduction in operational costs, particularly in manufacturing environments.
• High maintenance and support costs: As systems age, vendor support becomes more expensive and less responsive. Custom modifications, patches, and infrastructure upkeep drive ongoing costs without delivering proportional value.
• Limited visibility and strategic insight: Siloed or delayed data make it difficult to generate real-time insights, forecast demand, or support data-driven decision-making across departments.
• Security and compliance risks: Outdated systems are more vulnerable to cyber threats due to missing patches and slow upgrade cycles. According to Verizon, human elements contribute to up to 74% of data breaches, reinforcing the importance of modern systems, regular updates, and user training.

Why organisations are adopting SaaS ERP

As organisations outgrow fragmented systems and on-premises infrastructure, SaaS ERP has emerged as a practical response to modern operational demands. The shift is driven by scalability, predictable costs, and continuous access to new capabilities, rather than technology change alone.

Understanding this transition requires clarity on what SaaS ERP is, how it operates, and why it delivers advantages over legacy ERP platforms.

1. What is SaaS ERP?

SaaS ERP (Software-as-a-Service ERP) is a type of cloud ERP system where the application is centrally hosted by the vendor and accessed via the internet on a subscription basis. In this model, the vendor manages infrastructure, maintenance, updates, security, and system availability on behalf of the organisation.

Unlike traditional on-premises ERP, SaaS ERP does not require local installation or dedicated hardware. All users access the same centrally managed system through a web browser.

In short, all SaaS ERPs are cloud-based, but not all cloud ERPs follow the SaaS model, as some cloud deployments still require customer-managed upgrades or infrastructure.

How SaaS ERP works

SaaS ERP operates on vendor-hosted cloud infrastructure, where application logic, data storage, security controls, and performance are managed centrally. Users log in via an internet connection, and updates or new features are deployed across all customers simultaneously, without manual upgrade projects.

This delivery model reduces technical overhead while ensuring systems remain current, secure, and aligned with evolving business needs.

What SaaS ERP typically includes

A SaaS ERP platform integrates core business functions such as:

• Financial management and accounting
• Procurement and inventory
• Supply chain and operations
• Human resources and payroll
• Sales, CRM, and reporting

All modules operate on a shared data model, enabling consistent, real-time visibility across departments.

In more complex environments, organisations may also integrate ERP with specialised analytics or business intelligence (BI), material requirements planning (MRP), or manufacturing execution systems (MES). However, SaaS ERP remains the central platform that governs core data, processes, and operational consistency, while these specialised systems extend specific capabilities.

2. Why businesses are moving to SaaS ERP

To remain competitive, organisations are increasingly replacing legacy ERP systems with SaaS-based platforms. The shift is driven by operational flexibility, cost predictability, and faster access to innovation. See the four benefits of moving to SaaS ERP below:

Scalability and operational adaptability

SaaS ERP allows organisations to scale users, modules, and functionality as business needs change. Unlike on-premises ERP systems that require hardware upgrades or complex reconfiguration, SaaS platforms support growth and contraction with minimal disruption.

Real-time collaboration and system accessibility

Because SaaS ERP systems are accessed through a web browser, employees can work with real-time data from any location or device. This supports distributed teams, faster decision-making, and cross-department collaboration. Datacom’s 2025 Cloud & Infrastructure Report shows that easier remote access and collaboration are one of the most consistently realised benefits of cloud adoption among Australian organisations, reinforcing the role of cloud-based platforms in enabling flexible, connected ways of working.

Predictable costs and reduced capital expenditure

SaaS ERP replaces large upfront capital expenditure with recurring subscription fees. Infrastructure, maintenance, and system upgrades are included in the service, reducing unexpected IT costs and improving long-term budget planning. Findings from Panorama Consulting’s 2025 ERP Report show that nearly 80% of organisations realised IT maintenance cost reductions to the extent they expected after ERP implementation, reinforcing cost predictability as a key driver of value in SaaS-based ERP models.

Continuous updates and access to innovation

SaaS ERP providers deliver frequent updates that include performance improvements, security enhancements, and new capabilities. This ensures organisations remain aligned with evolving technologies such as automation, analytics, and artificial intelligence, without disruptive upgrade cycles.

Top 3 SaaS ERP Systems on the Market

SaaS ERP platforms vary in architecture, ecosystem, and target market, but all share a subscription-based delivery model designed to centralise operations and reduce infrastructure complexity.

Rather than providing an exhaustive market comparison, the platforms below are presented as representative SaaS ERP examples, each reflecting a distinct operational model commonly adopted by organisations of different sizes and complexity.

1. Microsoft Dynamics 365

Microsoft Dynamics 365 is a cloud-based business application ecosystem that includes ERP, CRM, and analytics solutions, designed for organisations seeking deep integration with the Microsoft stack. Its ERP capabilities are delivered through products such as Dynamics 365 Business Central and Dynamics 365 Finance & Supply Chain Management, depending on business size and complexity.

The platform integrates tightly with Microsoft 365, Power BI, and Azure services, allowing finance, operations, reporting, and collaboration to operate within a familiar enterprise environment.

Dynamics 365 is commonly adopted by organisations that prioritise productivity, advanced analytics, and seamless alignment with existing Microsoft tools, particularly where Microsoft 365 is already embedded across the business.

2. Odoo

Odoo (formerly OpenERP) is a modular, open-source ERP platform suited to organisations requiring flexible configuration and cost-efficient scalability. Its SaaS offering, Odoo Online, provides a fully managed cloud environment where hosting, upgrades, and system availability are handled entirely by Odoo.

For organisations requiring custom modules or greater technical control, Odoo.sh is available as a platform-as-a-service (PaaS) option, enabling custom development and controlled upgrades while remaining cloud-hosted. Together, these options allow businesses to adopt Odoo across finance, manufacturing, inventory, sales, and operations based on their operational and technical requirements.

Odoo is commonly chosen by growing businesses that value modular expansion and adaptability without enterprise-level licensing overhead.

3. Oracle NetSuite

Oracle NetSuite is a comprehensive SaaS ERP solution designed for organisations with complex, multi-entity, or international operations. It offers strong financial consolidation, real-time visibility, and integrated CRM and supply chain capabilities within a single cloud-native platform.

NetSuite is frequently adopted by organisations operating across multiple regions that require standardisation, governance, and global reporting.

Key Considerations Before Implementing a SaaS ERP

Successful SaaS ERP adoption depends less on selecting features and more on aligning business requirements, vendor capability, cost structure, and implementation readiness across the full ERP lifecycle. The following considerations outline the core decision and execution factors organisations should evaluate before committing to a SaaS ERP platform.

1. Assess business requirements and operational complexity

A SaaS ERP should be selected based on how well it supports real operational needs rather than generic feature lists. Organisations must first understand their current process complexity, industry-specific workflows, and future operating model.

• Identify operational pain points: Determine where existing systems limit efficiency or growth, such as manual workflows, fragmented data, or a lack of real-time visibility across departments.
• Assess data and process complexity: Evaluate how information flows between finance, operations, sales, and inventory, and where data silos or duplicated effort slow decision-making.
• Define short- and long-term business goals: Consider growth plans over the next three to five years, including new channels, locations, or transaction volumes, and ensure the ERP can scale accordingly.
• Prioritise capabilities by business impact: Use identified pain points and objectives to define which ERP capabilities are critical versus optional, reducing the risk of over-customisation.

2. Evaluate vendor capabilities and ecosystem maturity

Beyond product functionality, the long-term success of a SaaS ERP depends heavily on the vendor’s stability, ecosystem, and support model.

• Functional coverage and integrations: Confirm the platform supports core requirements and integrates cleanly with existing systems such as accounting, CRM, eCommerce, payroll, or analytics tools.
• Security and scalability foundations: Review the vendor’s approach to data protection, encryption, compliance, and performance scalability as user numbers and data volumes increase.
• Vendor reputation and support maturity: Assess customer references, case studies, implementation track record, and the availability of long-term support and advisory services.

3. Assess total cost of ownership across the ERP lifecycle

Subscription pricing alone does not reflect the true cost of a SaaS ERP. A realistic total cost of ownership (TCO) assessment must account for all costs incurred from implementation through long-term operation.

• Subscription pricing transparency: Review per-user pricing, module costs, data limits, and any charges for additional environments or functionality.
• Implementation and training costs: Factor in configuration, data migration, user onboarding, external consulting, and internal resourcing requirements.
• Ongoing support and optimisation: Evaluate support tiers, premium services, upgrade inclusions, and the cost of future enhancements to ensure long-term affordability.

4. Key stages of a SaaS ERP implementation

While timelines vary, most SaaS ERP implementations follow a consistent set of execution stages that structure delivery and reduce risk.

• Planning and discovery: Requirements definition, process mapping, and data strategy
• Setup and migration: System configuration, integrations, and data migration
• Training and adoption: User enablement, testing, and validation
• Go-live and optimisation: System launch, performance monitoring, and continuous improvement

Clear ownership and stage-gating at each phase help maintain scope control and user adoption.

5. Factors that influence implementation timelines

Implementation duration varies significantly depending on the organisational context rather than the software itself.

Key influencing factors include:

• Overall business and process complexity
• Degree of customisation or configuration required
• Data migration scope and data quality
• Number of integrations and entities involved

Simpler environments typically deploy faster, while complex or multi-entity organisations require longer planning and rollout phases to manage governance and integration risk.

6. Roles involved in successful SaaS ERP implementation

SaaS ERP implementation is a cross-functional effort that requires coordination between internal teams and external specialists.

• Internal project team: Business representatives from finance, operations, sales, and IT who define requirements and validate workflows.
• SaaS ERP vendor: Provides the platform, product guidance, and standard best practices.
• Implementation partner: Specialises in configuration, project delivery, and aligning the system with real business processes.
• Consulting firms: Support strategic planning, process optimisation, and solution evaluation where required.
• Internal IT team: Oversees integrations, data migration, and post-go-live technical support.

Clear role definition and accountability across these parties significantly improve adoption outcomes.

Why SaaS ERP Supports Long-Term Business Growth

Adopting a SaaS ERP system is not simply a technology upgrade but a strategic investment in operational resilience and long-term growth. By centralising data, automating workflows, and enabling real-time visibility, SaaS ERP provides a scalable foundation for modern business operations.

With clear requirements, the right implementation partners, and structured change management, organisations can fully realise the value of SaaS ERP and support sustainable growth in a digital-first environment. Experienced implementation partners such as Havi Technology, an ERP consulting and implementation partner supporting Australian and regional businesses, help organisations navigate system selection, implementation, and optimisation to ensure SaaS ERP delivers measurable long-term outcomes.