Why is Cloud ERP So Popular?
There’s been quite a bit of buzz about Cloud ERP recently. Many traditional ERP systems are aging and more and more businesses have been successfully working with other cloud solutions, allowing them to experience first-hand the many benefits of cloud-based systems.
What is Cloud ERP? Most companies are familiar with ERP (Enterprise Resource Planning) software. Businesses rely on it to help aggregate and organize data that is spread across independent departments. Traditional ERP solutions are often housed within a company’s own server infrastructure and require updating and servicing to stay current. Unlike traditional ERP software, Cloud ERP relies on the cloud rather than a proprietary server.
Benefits of ERP in the Cloud
Accessibility – Most cloud systems enable easy mobile accessibility, and many even offer native mobile apps. The very nature of SaaS (Software-as-a-Service) offerings is that you can access the application from anywhere. Companies and employees can upload and access data in real-time via the cloud, from any device with an Internet connection, allowing for greater collaboration among departments.
Support – Like other cloud solutions, cloud-based ERP solutions often offer 24/7 support. Should there be an issue, it can usually be solved quickly. Unlike on-premise hosting, which sometimes requires customers to purchase support packages, cloud vendors generally offer this as part of their service; and that includes software upgrades.
Cost Savings/Fewer Required Resources – The low entry cost of cloud-based software—compared with hefty, upfront perpetual license fees and additional capital outlay for networking hardware of traditional on-premise software – can be a major advantage for many small to mid-size businesses. Since you are buying a subscription from your provider, you don’t have to buy new servers to house the application or databases, nor do you have to hire people to install, troubleshoot and manage hardware and software associated with your ERP solution. That is all covered in your licensing costs. Cloud-based solutions have been found to reduce infrastructure, maintenance and lifecycle costs by as much 54 percent according to industry analysts.
Increased Collaboration and Efficiency – Your Cloud ERP can be hosted on one platform, along with other business applications, such as your CRM and accounting system, for example. This provides an opportunity to unify all systems, offering easier collaboration. Using one cloud platform allows apps to talk to each other, share a central database, get on-demand real-time reporting and provides a single user interface.
Security – Though buyers were once wary of the security of cloud-based software, many today are becoming less skeptical. Reputable cloud vendors have strict standards in place to keep data safe. To further ease concerns, prospective buyers can seek a third-party security audit of a vendor they’re considering.
Scalability – One of the benefits that early cloud adopters quickly realized is that with a cloud subscription, it is easy to scale services to meet your needs. If your business experiences tremendous growth, you can easily increase your license size. The reverse is true as well – you can easily scale down storage and power to accommodate reduced workloads.
Today’s organizations want solutions that provide simplicity. Traditional ERP has a reputation as difficult to implement, hard to integrate and maintain, and has been associated with cost overruns leaving organizations hesitant to adopt. The move to the cloud has made ERP adoption much more accessible for smaller and mid-size businesses, and larger businesses have found that it provides a much more agile ERP environment across all lines of business.
ERP in the cloud can streamline your business processes from financials, procurement, portfolio management, accounting, revenue and risk management and others, so that you can increase productivity, lower costs and improve controls.
Still not sure if Cloud ERP is right for your organization? Contact us. A free assessment can help determine your needs.
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