Cloud ERP adoption has exponentially risen in recent years, and the Cloud ERP Market is To Surpass USD 178 Billion by 2030, at a 12.1% CAGR.
So it is no surprise that many small and large companies have begun to move away from on-premise ERP systems and towards cloud-based ERP solutions to reduce costs and boost productivity.
Now, it's becoming increasingly clear that businesses choose to automate as many tasks as possible and retain human intervention solely for procedures that require critical thinking.
Cloud-based ERP systems have multiple advantages over on-premise systems, like lower total cost of ownership, as there is no necessity to buy hardware equipment.
Here are 6 key reasons why you should opt for a cloud-based ERP in 2024:
6 reasons why you should adopt cloud-based ERP
1. Enhanced security
Although Some businesses believe cloud-based ERP solutions are not as secure as on-premise systems and are still wary of placing their sensitive data in the cloud, it couldn't be further from the truth.
Cloud-based software generally offers data protection features far superior to the ones implemented by in-house resources. From cutting-edge data encryption, multi-factor authentication, and ongoing 7/24 monitoring of all system elements (OS, DB, network, etc.) to Built-in, proactive threat detection mechanisms and severity-based SLA, cloud-based solutions offer comprehensive security elements that are not usually embraced by on-premises ERP systems
2. Effortless regulatory compliance
Keeping pace with government regulations, the constantly changing electronic data handling laws, industry standards, and corporate quality initiatives may prove challenging for small and medium-sized businesses.
Cloud ERP systems ensure that the proper tools, security, and agreements are natively in place to support compliance with local statutory and regulatory requirements.
Through automated workflows and audit trails, a cloud business management system provides the means to meet regulations like HIPAA and GDPR and the documentation required to reduce the risks and costs of compliance.
3. Disaster management and recovery
Cloud ERP solutions ensure a stable working environment and maintain business continuity in case of technical issues and unexpected downtime.
Cloud-based ERP systems are often backed by solid disaster recovery policies and procedures, such as Automatic data replication in separate availability zones, implemented by the infrastructure providers,
ensuring comprehensive protection against catastrophic data loss scenarios, such as security breaches, theft, natural disasters, etc.
4. Ability to scale
Today's complex industrial ecosystem is characterized by constant disruption, innovation, and continual process refinement.
In response to market changes, a business may expand from a start-up to a multi-national organization or transition from one industry to another.
While on-premise system scaling can be complicated, often costly, and require the utilization of various in-house resources, the seemingly "virtual" infrastructure of a cloud ERP system allows organizations to dynamically scale up/down and easily optimize computing resource allocation according to the business needs.
5. Improved organizational communication
One of the primary uses of an ERP system is intradepartmental communication.
A cloud-based ERP system takes communication a step further, allowing your teams to access the tools they need from anywhere, and at any time, via any mobile device or tablet.
The cloud ERP synchronizes all the data simultaneously at a centralized database, ensuring everyone has access to the same data version without errors or duplications.
6. Reduced operating costs
Cloud-based ERP systems have low implementation costs Compared to an on-premise ERP, as no hardware setup is required.
Traditional onsite ERP necessitates manual upkeep and periodic hardware updates. Most cloud-based ERP systems, however, are offered in a subscription-pricing (SaaS) model and require minimal to no maintenance.
Get a cloud-based ERP solution today
The response to the global surge in remote working reduced IT budgets, and the critical need to secure sensitive business data has led ERP vendors to look for ways to disrupt the market and accelerate cloud ERP adoption.
If you're considering the proverbial move as part of your ERP migration strategy and transferring your data to the cloud, it's important to select a vendor who promises a short, seamless migration process, but that's not all.
You'll also want your new cloud ERP solution to give you the same 100% functionality as an on-premise system. With ready access to more innovative business software, you can build a competitive advantage that grows and evolves with the market.
And last but not least, you'll want guaranteed data security to protect your most valuable asset – your organization's information.