Software as a Service-based enterprise resource planning appears to be gaining acceptance as a viable option, as a recent Aberdeen Group survey found that 39 percent of respondents indicated they would consider this form of implementation, up 61 percent from those surveyed a year ago.

In the newly released report, “SaaS ERP: Trends & Observations 2010,” participants noted that willingness to consider traditional licensed on-premise software dropped by 18 percent from the prior year.

“Since 2007 Aberdeen has been keeping watch on deployment models of ERP,” said Aberdeen vice president research fellow and group director Cindy Jutras. “Finally in mid-2010 we are seeing an overall 61 percent jump in willingness to consider SaaS ERP. Will 2010 finally be the year when those walls of resistance come tumbling down, or will they just fade away and leave us at the dawn of 2011 wondering what the fuss was all about?”

In addition, 79 percent of respondents indicated they were considering SaaS because of the perceived lower total cost of ownership. They are also considering it because it reduces the cost of upgrades and because they have limited IT resources and no interest in building IT staff.

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