Alliance Partner
28 Apr, 2022

Benefits of Moving to a Cloud ERP Solution

Cloud Enterprise Resource Planning (ERP) solution permits the users access their ERP software over the internet. The ERP software and tools control the cloud, rather than being introduced on your system on premises. It is expanding tremendously. According to Gartner Inc report (United States of America), there is a 17% rise in cloud services globally in 2020, as it becomes the mainstream. It is estimated that before 2025, the majority of ERP spending will be on cloud ERP deployments. There are numerous types of cloud ERPs. One is Hosting and the other is Software-as- a Service (SaaS). SaaS operates with a multi-tenant architecture. It is an example of a software application, which benefits multiple customers and each customer is called a Tenant. 

Cloud ERP solutions allow companies to take control of immense computing power. Moving from on-premises to cloud ERP provides low cost, faster performance, lower manual efforts and staff resource usage. Companies become more flexible and accessible with cloud-based systems. In ERP, the seller is in charge of all functions including establishing, supporting, improving, and fixing the customer’s data. The users and organizations obtain the ERP application through the internet.  The only requirement is an internet connection and a browser. The remarkable feature of ERP is that no software is to be inserted on the user machine to obtain the ERP system.  

 ERP software is designed to meet the needs of an individual and thus implement it for companies across industries. Many prominent companies all over the world has depended on ERP for the last Century. Presently, ERP is able to meet the needs of large businesses. An ERP system helps in the unification of people, businesses and technology across an organization. 

Advantages of moving On- Premises ERP to the Cloud 

The following are the reasons why a company shifts from On- premises to cloud ERP: 

• Quick updates and upgrades 

Periodic updates are necessary for all ERP software to improve performance and fix security issues. Using an On- Premise ERP system consumes extra time, and much internal IT resources. An outdated ERP is challenging as it ignores vital business processes affecting profitability, business development and innovation. 

With cloud-based ERP the trouble of updates and upgrades is upon the provider. Minor updates are automatically installed without disturbing the users while major updates are declared before. This is how the latest technology helps your business. 

• Lower working and scaling costs

Cloud based ERP system has no hardware setup results in lower implementation cost compared to on-premise ERP. Mostly, cloud-based ERP systems are available in a subscription price model which makes it applicable for small and medium sized businesses. Cloud based ERPs are more adaptable and creative. Unlike the on- premise systems, cloud-based ERP have more scalability and it helps the business effectively. 

• Cloud ERP provides security and prevents data loss 

Cloud based ERP has built-in security protections to safeguard your data. It provides strong backup and recovery plans. Whereas on-premise backups are not tested regularly. On- premise ERP systems are often prone to risk due to issues with hardware or the network. Whereas cloud ERP has energy backups and fails safely. 

•  Better availability, cooperation, and agility 

Compared to on-premise ERP, a cloud ERP provides better access, utility, and flexibility. When your ERP is managed in the cloud, it allows for more business agility. This permits the employees to access cloud ERP from anywhere, any moment, using any device with an internet connection. Even companies with multiple locations do not face any problems while accessing a cloud system.  

• Reduce dependency and clear internal IT teams

Moving to a cloud-based ERP highly benefits the company’s internal IT team. On- premise ERPs are unmanageable and it leaves short time for IT infrastructure planning and governance. At the same time using a cloud-based ERP takes less time and effort. The technical responsibilities are upon the software vendor therefore internal IT team have less maintenance task; they worry less about: 

1. Hardware maintenance 

2. Product upholds 

3. Updates and upgrades 

Internal IT team can save their valuable time for business profitability rather than spending much time maintaining ERP. This aids small and medium-sized businesses maximum utilize their internal IT teams.  Businesses that do not have a full-fledged IT department can also function properly without extra investment. 

• Access to more business intelligence capabilities

Cloud ERPs easily gather and keep data in a single system enabling successful data analysis. Most cloud- based ERPs provide built-in analytic features, offering real-time data. This lets your team recognize changes in business conditions, evaluate possible strategies, and make better business performance.  

On the other hand, traditional on- premise ERP software comes across compatibility issues and is likely to have overloaded data. 

• Implementation

The major concern in a business is cost. The cloud-based ERP has quick implementation and lower cost at primary stage when compared to on-premise ERP. The repeating monthly charge of cloud ERP varies depending on the users, though they are constant and simple to plan. A cloud ERP system saves time and money for small businesses that do not have an IT department. 

• Real -Time Analytics 

Real time analytics helps to make crucial business decisions and make sure of process optimization. Access to real- time analytics is one of the benefits of cloud ERP software. This enables the company to view major details as they become available.

• Security

Cloud ERP software provides security to all types of businesses and follows all activity and encodes data stored within the ERP.

• Rescue from disaster 

Cloud ERP system is made with disaster recovery solutions. At the time of fire, flood, hardware failure or theft cloud ERP system helps to recover lost data and automatically backup data when a failure is found out. 

• Flexibility

Employees across the globe can have access to cloud ERP from laptop, tablet and smartphone, as it deposits and manages everything remotely. 

On a concluding note, users can easily access cloud ERP through their mobile devices and computers 24/7. This helps you run the business smoothly focusing on positive customer experience and client retention. It virtually connects many devices required for the company. It has the ability to access details of the customer, sales histories, financial data, and supply chain status. Cloud ERP is safe, well organized and can access important company data and systems to finish their work properly. It can be accessed online from anywhere. Cloud ERP software provides basic financial and accounting services. 

Earlier ERP software is located at a company’s building on its own servers and the company’s IT staff maintains it. With the improvement in technology, and development of the concept of ERP give rise to cloud ERP. It enables businesses to arrange software on a cloud platform without funding in any hardware or data center. Moving to the cloud brings better practice of data, creative technological ability and a safer ERP system. 

Business can grow faster with cloud-based systems because they are highly flexible and innovative. It allows leaders to grow their business and achieve great heights since it discharges all work related to fixing the bugs, patches and raise higher standards to the vendor.  

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