The world is changing…companies are looking more and more towards “the cloud” for their computing needs. It started with CRM systems, which some organizations consider “not business critical”, but now the cloud has encompassed full-blown Enterprise software and Microsoft Dynamics GP is no different.

So what is driving this trend towards Hosted solutions? Is it cost? Is it efficiency, or is it just a passing fad?

Aberdeen (c) reports recently released a study that highlighted the fact that the number of small to medium companies looking towards hosted solutions has increased substantially since 2009.

What’s driving organizations into the Cloud?

What I’ve found with my Clients and interactions with “soon to be” Clients is that cost is not the biggest driver pushing people into the Cloud. It’s strategy and focus. In other words, some organizations realize that their expertise does not lie with maintaining servers and upgrading system patches. They reserve those efforts for others while they remain laser-focused on growing their business effectively and efficiently. They let others worry about keeping their systems up to date and working properly…as they should.

When a company can find a “best of breed” accounting system like MS Dynamics GP available in the Cloud as a Hosted solution, then the decision is relatively simple. Microsoft has ingeniously developed a business model whereby their VARs (Value Added Resellers) can now offer Dynamics GP as a Hosted system. It’s quite competitively priced against other Cloud ERP systems (eg: NetSuite). Since Microsoft is still heavily investing R&D $’s in the future of MS Dynamics GP, the competition is going to struggle to keep up.

I’ve heard people say that Software as a service (SaaS) is the “best thing since life’s bread” and I’ve also heard others claim that it’s just the newest thing and it will pass.

The best analysis I’ve seen on the subject came from an associate of mine, Pat Gray, in his blog on “Cloud Computing for Mere Mortals”.

His analogy was that determining whether SaaS is right for your company is the same as making a “make/buy” decision when procuring product for a company. You have to take a look at the ENTIRE picture (cost, strategy, capabilities…) to determine the right course of action.

For instance, if I’m selling coffee, then I need to look at the costs of procuring it from the various sources out there, or is it more economical for me to purchase a coffee plantation in South America and make my own beans? If I’m not really in the business of managing coffee growers directly, then why don’t I focus on what I’m good at, the marketing and sale of coffee, rather than the actual manufacturing of it?

Dynamics GP vs. Hosted Dynamics GP

This is the same analysis I need to do when evaluating whether to purchase Dynamics GP or subscribe to Hosted (SaaS) Dynamics GP:

These days, everyone is throwing around buzz words like “Software as a Service” or “Hosted” or “Cloud”, but how do I really go about calculating the total cost of the solution and whether to choose “the Cloud” or on-premise (traditional) solutions?

There are a number of cost figures to include :

1.       License fee

2.       License fee for upgrades

3.       Maintenance costs

I encounter prospective Clients every day who ask me: why?

• Why do I need a new system?
• Why do I need to invest in new software?
• Why WebSan?

I cannot come up with "one-size-fits all" answer for everyone, but what I can tell you is the following:

• Companies that leverage Enterprise software to run their business see a significant improvement in their financial performance. This can manifest itself operationally in many ways, but typically it's a reduction in outstanding Receivables, growth in operating margin and lower overhead resources in the Finance and administration departments.
• According to a recent Aberdeen© report, best in class companies saw:
  • 22% reduction in operating costs
  • 20% reduction in administrative costs
  • 17% reduction in inventory
  • 19% improvement in complete and on-time delivery

Organizations are always looking to be more competitive and reduce costs. A solid investment in technology with the right Partner can make all the difference in the world.

WebSan Solutions Inc. is a Microsoft Dynamics Certified Partner specializing in MS Dynamics GP and Hosted MS Dynamics GP. Dynamics is a top-rated Enterprise software system that has over 40,000 installs in North America.

Contact us for inquiries.

I see a lot of Clients attempting various methodologies to research and find new software.

One of the great resources that I've recommended is : FindAccountingSoftware.com

This is a website whereby you can find objective, 3rd party information on many systems offered (there are many, believe me!). We've had numerous Clients find us through that website and they're quite happy with their selection of MS Dynamics GP and WebSan Solutions Inc.

Have you seen us on the Microsoft Solution Profiler?

Click here.

WebSan is one of the few companies in North America that offers a hosted Dynamics GP solution. It reduces your total cost of ownership vs. an on-premise solution.

Check out our web page regarding hosted Dynamics GP for more information.