Enterprise Resource Planning (ERP) software is necessary to process automation and optimization tools for organizations of all sizes and scopes. It helps businesses to automate multiple processes and maximize their productivity and efficiency while helping them to streamline their operations, and generate real-time insights to grow their business, and their revenues.
Although ERP was initially deployed on-premise running on a company’s in-house infrastructure, in recent years, cloud-based delivery models have become exceedingly popular. Cloud ERP can be accessed from any device anywhere, at any time. It supports access management and provides a high level of security, making it the preferred choice for a wide range of companies across all industry sectors.
But is there a ‘right’ sized company that should consider cloud-based ERP? Are companies too small, or alternatively, too large to manage their operations in the cloud? Or do all-sized companies fit the cloud ERP bill?
What is cloud ERP?
Cloud ERP is delivered online by the ERP vendor as a Software as a Service (SaaS) model. It usually runs on shared infrastructure and is typically managed by the vendor. The end result is, ERP users do not have to implement ERP locally, saving valuable storage space and computing resources.
Cloud ERP is also regularly updated and managed by the vendor, eliminating the need for often costly in-house IT teams.
It reduces IT expenses, automates and optimizes operational processes, and enables organizations to focus on more important strategic initiatives, and grow their business. These reasons make cloud ERP very popular among small and medium-sized businesses.
Quick comparison chart of cloud ERP benefits based on company size
Benefits of Cloud ERP
|Small and medium-sized businesses||· No need to hire full-time IT professionals
· Eliminate upfront expenditure on IT infrastructure
· Access to vendor-based IT support and training
· Monthly fees remove the need for investing in a one-time purchase of costly software licenses
· Scale as needed; no need to purchase all the ERP modules at once
· Innovative mobile apps, allowing users to access ERP anywhere, any time
· High-level security to ensure data privacy and protection from threats
|Large enterprises and corporations||· Consistently proven to be more secure than average corporate data centers
· Less prone to phishing attacks and internal threats
· Gain a competitive edge by eliminating legacy software tools
· Eliminate unnecessary software customizations
· Reap the benefits of AI-enabled innovations to meet core corporate and enterprise-level requirements
· Downsize manpower and enable lean infrastructure
· Integrate third-party products and applications
|Micro-businesses and startups||· Enables micro-businesses and startups to scale quickly, with more ammunition than necessary for the smallest of businesses to succeed
· Provide enterprise-grade customer service and after-sales support
· Automate backend operations without the need for hiring temporary employees or third-party vendors
· Ideal for budding startups, one-person companies, and freelancers considering digital transformation
· More time and resources to channelize business innovation and growth
Cloud ERP benefits not only small and medium-sized businesses but also enterprise organizations. It gives micro-businesses an advantage that they otherwise cannot access without external support. Most cloud ERP products support customizations and integrations, making them suitable for niche businesses, regardless of their size or requirements. In a word, whether your company produces cheese or automotive parts, distributes newspapers, or manages a retail chain, cloud ERP serves the needs of all businesses.
Cloud ERP is the right choice for businesses of all sizes
Although many businesses believe that cloud ERP is ideal for small and medium-sized businesses, they enhance the operations of micro-businesses and large enterprises as well. Businesses of every size and type can use cloud ERP to their advantage. Plans and subscriptions can be tailor-made for specific requirements, and additional features and modules can be purchased as and when necessary. Unless an organization is specifically keen on or must store all of their data on locally-managed servers, as are, for example, regulated government offices and organizations with highly sensitive data, cloud ERP is the definitive solution for all.