7 Cloud ERP Benefits You Can’t Miss Out On
Adoption of cloud ERP has been picking up considerable steam in recent years. The technology has matured to the point at which the benefits of cloud ERP software far outweigh any doubts as to its viability.
Enterprise resource planning software, or ERP for short, has long been a mainstay of corporate information systems. Until just a few years ago, on-premise ERP systems were the norm. Today, however, more and more business leaders are seeing the benefits of cloud ERP systems.
In this article, we will examine some of the key trends driving the transition to cloud-based ERP solutions, and why cloud ERP software might be the best fit for your business.
What is cloud ERP?
ERP software provides a backbone for all of your business processes, managing information and workflows for everything from core financial accounting to supply chain management, manufacturing operations, and human resources. Traditional on-premise ERP systems generally require fairly complex computing infrastructures. Those must typically be managed by internal staff, who expend considerable time and effort looking after data security and other critical concerns. The total cost of ownership for on-premise systems is fairly high because of the staff time, operating costs, and capital expenditures required.
Cloud-based ERP systems, in contrast, are hosted and managed in secure data centers, accessed from virtually anywhere using just an internet connection and web browser. Data security is managed by a 24×7 team of experts, and most ERP vendors offer automatic feature enhancements several times a year. Briefly stated, there are many benefits of cloud ERP systems.
Why do companies adopt a cloud-based ERP solution?
Most companies focus on the most commonly touted benefits of cloud ERP, such as lower cost of ownership, better data security, the ease with which employees can work from home, and powerful business intelligence capabilities that take advantage of cloud computing.
Other benefits of cloud ERP software include greater flexibility, automatic feature enhancements, and a more predictable total cost of ownership.
What are the primary cloud ERP benefits?
There are many advantages to cloud-based ERP solutions, but here are the top cloud ERP benefits:
Better data security: In the past, many companies were concerned about data security in the cloud. Today, many have realized that on-premise systems are actually less secure than the cloud. Cloud ERP systems are hosted at secure data centers with 24×7 monitoring. Experts ensure that software patches and security updates are applied promptly and that industry-standard data security protocols are strictly followed at all times.
Flexible work from home options: If you’re operating a virtual organization, or even if some of your employees work from home, cloud ERP benefits those employees by offering ease of access. This applies to geographically dispersed organizations as well. Cloud ERP makes it possible to collaborate easily across an extended enterprise, saving time and effort for everyone involved.
Lower internal IT costs: One of the big benefits of cloud ERP systems is that it frees up your IT staff to focus on other important issues. They no longer need to manage dedicated servers, database backups, and other infrastructure related to your ERP system. With on-premise ERP systems, hardware can become outdated and require replacement. Cloud ERP eliminates that need altogether.
Simple upgrades & enhancements: Cloud ERP offers vastly simplified upgrades. On-premise ERP software has historically required periodic upgrade projects, which could be disruptive to the entire organization. Cloud-based ERP solutions, in contrast, are updated with new functionality frequently, without the need to install upgraded software. That means a lot less time spent waiting for an important new feature, and no need to allocate valuable staff time and effort to a large-scale upgrade project.
Scale up quickly and effortlessly: With a traditional on-premise ERP system, it could be difficult to add capacity. The process could take days or even weeks. A key benefit of cloud ERP software is its ability to scale up effortlessly. Typically, that means making a phone call or logging a request to increase capacity. No new hardware is required; your cloud ERP vendor can simply turn on the additional capacity, making it available right away. That means you spend less time worrying about your IT systems and more time focusing on critical business matters.
More predictable expenses: On-premise ERP software usually involves a substantial up-front license cost, plus annual payments for support and maintenance. Most companies capitalize on those expenses, which means they require substantial advance planning and approval. Cloud-based ERP software is usually available on a subscription basis, which means you pay as you go. When you factor in the staff time and effort you’ll save with cloud-based ERP software, it adds up to a much lower total cost of ownership when compared to traditional on-premise ERP.
Powerful business intelligence: Reporting and business intelligence tend to be very computationally intensive. On-premise ERP systems offer some business intelligence capabilities, but they lack the power and flexibility of cloud-based ERP software, which benefits from the scalability and elasticity of cloud computing platforms. With cloud-based ERP, you get the benefit of very powerful business intelligence, whenever you need it.
How do you know if a cloud ERP system is right for your business?
If you’re interested in improving the agility and efficiency of your business, driving rapid innovation, and creating a solid foundation for growth, you’ll find that the benefits of cloud ERP may be a perfect fit for your organization. To find out if a cloud-based ERP system is right for your business, it’s best to sit down with the experts and discuss your unique goals and requirements. An ERP expert can review critical business requirements like data security, operating costs, and other factors that will weigh into your decision.
How to get started
To get started with cloud ERP, contact the experts at Synergy Resources to discuss your needs. To learn more about the benefits of cloud ERP systems, check out these additional resources available for free from Synergy Resources: