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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Enterprise Resource Management

A mid-sized Indian retailer chooses a cloud-based (SaaS) ERP hosted by a vendor instead of an on-premise installation. Which statement is correct about this deployment choice?

With SaaS ERP the retailer pays a subscription while the vendor manages servers, hosting and upgrades. The retailer still stays accountable for legal compliance and data protection of its own data. Responsibility cannot be wholly outsourced to the vendor, and the system can still be configured and integrated.

  1. AThe retailer must buy and maintain its own servers and data centre
  2. BThe retailer pays a subscription, the vendor manages infrastructure and upgrades, and the retailer still remains responsible for compliance as the data ownerCorrect
  3. CThe vendor becomes solely liable for all data protection obligations, so the retailer has none
  4. DThe ERP can no longer be configured or integrated with other applications

Explanation

SaaS ERP shifts infrastructure, hosting and upgrades to the vendor on a subscription basis. However, the business using the system continues to be accountable for lawful handling of its data, including personal data, so it cannot transfer all obligations to the vendor. Option four is wrong because SaaS ERP is configurable and offers APIs.

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