Do you want to upgrade your on premise ERP?
The global enterprise resource planning (ERP) market is currently at $42.1 billion. The industry is thriving, thus encouraging the technology to evolve. If you want to gain an edge over competitors, you must be on top of updates.
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In this guide, we will discuss everything to know about ERP cloud based systems. Read on and learn what it can do for your business:
What Is Cloud Based ERP?
Cloud ERP automates connecting and collaborating between teams across your company. It bridges the gaps and improves the efficiency of communication. After all, the system streamlines your business processes for easier access.
Allowing your ERP software to reside in the cloud frees more space in your local data servers. You can better store vital and sensitive information within. When your data isn’t accessible through the internet, hackers have a more difficult time stealing them.
Using the cloud also allows employees to access your systems from anywhere, even at home. Your business better adapts to the rise of home-based employees. It gives your employees the advantage of making informed decisions immediately.
Types of ERP Cloud Based Software
Businesses have varying needs when using ERP software. When the systems are within the cloud, they are simpler to upgrade. The cloud also has a massive pool of resources, allowing it to support any application.
Here are some types of cloud ERP software for your company:
In this setup, multiple organizations use a single ERP software version as well as its infrastructure. The caveat is each company can only access its information. It is the most common ERP software around.
This type is the opposite of the multi-tenant SaaS. The ERP software version and its infrastructure are exclusive to one company. Using it means hosting your organizational data on private servers running a unique instance of the software.
Public and Private Cloud
Service providers own the public cloud. They allow various organizations to share cloud computing services. However, these companies can never access another’s data and applications.
Examples of public cloud services include:
- Amazon Web Services (AWS)
- Google Cloud
- Microsoft Azure
- Oracle Cloud
Meanwhile, private clouds are similar to single-tenant SaaS. They are services exclusive to the client organization.
As its name suggests, this ERP type is a combination of on-premises software and private cloud services. It includes computing and storage.
Benefits of Cloud ERP Software
Now you are more knowledgeable of cloud based ERP, learn about its advantages. Here are the most valuable ones:
Upfront Infrastructure and Operating Prices
An ERP solution within the cloud has reduced costs, beginning with its implementation. Its on-premises counterpart has higher upfront costs with the following:
- Initial implementations
- IT staffing
- Security and backup
Companies maintaining these ERP systems have additional maintenance costs. They will also need specialized in-house or on-call resources. As time passes, these businesses pay for upgrades and more servers.
Meanwhile, cloud ERP will cost around 30% less. The vendor will host and manage the software within their servers. You avoid infrastructure and IT staffing costs.
Look into this Acumatica pricing guide to have a better idea.
Faster Implementation Speed
One of the hardest obstacles of new ERP solutions is implementation. The time it takes to make your ERP system affects your business productivity. The longer the duration, the more downtime and less value you get.
When you invest in a cloud ERP system, the implementation is quicker. After all, you need not pick and set up hardware or hire and train IT staff. The best part is your vendor will take care of the ongoing IT support.
ERP users can access various business information in real-time. As said before, these systems are accessible anywhere, regardless of your device.
It ensures your employees are using the same data. Their business unit or location won’t matter. The consistency of the data makes them more confident with their decisions.
Your ERP solution is easier to scale when using the cloud since you need not add more physical servers. Your company can start with the basic functionalities and add more whenever necessary. The ERP vendor can do it without using additional hardware.
You can access your business information through the internet. As your company grows, you can buy new units online. Cloud vendors have data centers across the globe and will keep your data in various locations.
This feature gives better and more reliable services than what you could manage. Vendors strive to maintain a 99.999% availability. With this service level, expect less than eight minutes of unscheduled downtime every year.
Customizations and Agility
Cloud ERP is easy to customize and fit your business needs. It applies whether it’s from the start or during your business growth and evolution.
On-premises ERP software is also customizable. However, your current software limits the options. If you developed in-house integrations, reimplementing is more difficult with future versions.
Security, Compliance, and Disaster Recovery
Most organizations feel concerned when entrusting their company data. However, cloud ERP has better security and compliance than what you can afford. The vendor has disaster recovery plans, practicing them to perfection.
Meanwhile, on-premises ERP software is at risk of data loss during natural disasters, fires, or break-ins. In some cases, disaster recovery and business continuity plans are too expensive to maintain.
Cloud vendors have enterprise-grade security alongside end-to-end data encryption. They take your safety seriously when handling the identity and access management of your users. These providers also secure devices, whether it’s smartphones or PCs.
Upgrade to Cloud ERP Solutions Now
This is everything you have to know about ERP cloud based solutions. If your business uses outdated, on-premise ERP software, consider switching now. Otherwise, your competitors will reap its benefits and surpass you.
Learning what cloud ERP does is only half the battle. Look for the best vendor to protect your long-term investments.
Did you find this guide helpful? If so, please consider reading our other articles for more valuable tips today.