Enterprise resource planning (ERP) has traditionally represented a significant capital investment in hardware, software and infrastructure for the large corporation to be able to drive effective operations. Now, with the proliferation of cloud computing and SaaS (News - Alert) applications, IT leaders are increasingly turning to ERP software delivered through hosted platforms.

This recent CIO report focused on the shift taking place in the IT space as leaders have discovered ERP software delivered as a SaaS solution, trusting that this cloud-based delivery platform can support secure and mission-critical data. Many of the fears that had kept IT leaders and CIOs at bay when it came to SaaS ERP products are being steadily eliminated.

Even with this push for SaaS ERP software, the market is still overwhelmingly dominated by on-premise ERP systems. At this current time, SaaS solutions account for only 2 percent of the global ERP revenue, according to data captured by Forrester Research (News - Alert). Worldwide spending on ERP software in the cloud is expected to rise roughly 21 percent annually through 2015.

With this anticipated demand, enterprise ERP providers such as SAP, Epicor, Oracle and NetSuite (News - Alert) have launched their own on-demand ERP software products.

The benefits of SaaS ERP software are driving the momentum in this space. IT leaders are finding they can turn software acquisition from a cash-intensive capital expenditure into a more manageable operating expense. Leaders also tend to appreciate the way ERP software applications delivered through the cloud enable them to get rid of hardware procurement and support costs.

By eliminating the need to install hardware, implementations can be easier and faster to complete. Companies that operate globally also find that SaaS ERP software is a cost-effective option for branch sites and facilities that may have limited IT staff. The on-demand delivery model makes sense when a company does not want the expense of a support presence in remote locations.

The key to this trend among IT leaders is that they have been familiar with the benefits for SaaS ERP software for years, yet the common arguments against using such a platform tended to outweigh them. Now, these arguments are losing their potency as other on-demand software solutions rapidly enter the market and demonstrate much success. The more companies use SaaS ERP without problem, the more confident CIOs become about making the change.

One of the key challenges, of course, has been in the presumed insecurity of the cloud-based solution. Companies were afraid to move their sensitive data. Industry experts suggest that the security issue is more a perception problem than it is a real problem and on-demand ERP solutions are actually less of a risk than on-premise implementations.

With this promise, what are you waiting for?

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.