ERP is the big daddy of all IT applications. And why shouldn’t be? It manages and tracks all the financial transactions within the organization. There are many enterprise level ERP solutions in the market. The most reputed amongst them is probably SAP. Now, managing this application is not a very easy task.
ERPs are robust applications with high end requirements in the back end. The hardware required to house them is quite extensive. If you are operating on a Capex model, then you stand to burn a huge hole in your pocket and your CFO will probably be after your life, thereafter. Not only do you have to buy the expensive hardware upfront, you will have to have a plethora of highly trained ERP engineers at your disposal to effectively manage the application.
Now, consider the scenario where you have outsourced your entire requirement to a third party organization. You rent the required hardware and use it on a IaaS Model and you take managed services from them too! Managed Services implies that the 3rd party will provide you with trained engineers who in turn will manage your ERP application, and assure you of a specific uptime, something which you can’t ensure in your organization.