Microsoft Dynamics ERP Customers See Advantages in Shift to SaaS, Echoing Industry Trend

As small and mid-market companies continue to re-evaluate the ERP landscape, the trend toward more SaaS (software as a service) implementations continues. And companies that choose Microsoft Dynamics ERP are also giving SaaS a serious look.

In a recent study of ERP implementations across the globe, Panorama Consulting found that the percentage of organizations deploying SaaS (software as a service) solutions increased from 6% in 2009 to 17% in 2010.

Companies finding their way to Microsoft Dynamics-based SaaS ERP solutions seem to share many of the common needs that the SaaS ERP market aims to provide like lower upfront cost, lower in-house IT demands, and lower complexity. 

Most of the companies that decide on a SaaS model don't have an ERP system in place, according to Eric Kimberling, president of Panorama Consulting Group. "Maybe they have QuickBooks or a CRM system but not a full-blown ERP system," Kimberling said.

That was exactly the case for Syndiant, a manufacturer of small and high-resolution light modulating chips used in ultra-portable projectors.

"We're an early-stage company that started in 2004 and we didn't do product manufacturing until late October 2009," said Syndiant Controller Cory Johnson. "In December 2009 the executives of the corporation made a decision that it would be wise to go from QuickBooks to an ERP system. And they decided since we didn't have an onsite IT staff it would be better and more cost efficient to run it as a SaaS hosted model."

After looking at a number of vendors, the company chose Tensoft Inc.'s Fabless Semiconductor Management solution (FSM) and Microsoft Dynamics GP using ...