What is Cloud based ERP?

An Enterprise Resource Planning (ERP) software helps organizations manage their day-to-day business activities, such as accounting, procurement, project management, risk management and compliance, supply chain operations, and more. ERP systems effectively streamline and automate business processes across teams, departments, and companies, powered by a centralized database, all on a single integrated platform.

While traditional ERP is an on-premise system, a system that runs on in-house servers at a company's location, in recent years, numerous companies around the globe have opted for cloud-based (or simply, "cloud") ERP. Gaining popularity, particularly with small to mid-sized organizations, but no less for enterprise corporations, cloud ERP systems eliminate the need for on-premise installations. They offer a wide range of time, resource, and cost-saving benefits.

Cloud-based ERP systems help increase the efficiency and connectivity of an organization by managing and improving how company resources are utilized without the maintenance and resource requirements of an on-premise solution.



Why Choose Cloud over On-Premise ERP?

Cloud ERP Software is the ideal solution for companies that don't have an in-house IT department or those who may be intimidated by the challenges of on-premise ERP. It's more affordable, it's more accessible, and it's also faster in terms of implementation. Vendors usually offer cloud ERP based on an annual or monthly subscription fee. The fee often covers software updates, security, installation, customer service, and tech support. As a result, organizations worry less about their operational processes and have more time to focus on their actual business strategy.

Cloud ERP is a particularly attractive option for businesses looking to scale up and grow their operations. Because cloud ERP is often offered as a solutions suite or package consisting of several basic modules, each module targets a specific business area. If, for example, a customer doesn't require a full cloud ERP, it's possible to choose the necessary modules only and scale as and when needed.

Ideally, because cloud ERP runs on a vendor-managed public or private cloud, it's exceedingly more cost-effective. In addition, cloud-based solutions provide the flexibility and mobility to access an ERP system and its connected solutions through the vendor's cloud platform. They are more convenient, as the system can be accessed from any location and at any time.


How Does Cloud ERP Work?

Cloud ERP systems work with a unique combination of advanced technologies connected via the Internet. Cloud ERP systems are always available and accessible, anywhere and anytime. Software and security updates are managed and controlled by the ERP software vendor so that all users need to do is log in and access the system. Cloud ERP offers the same features and functionality as on-premise ERP, with an extensive range of operational processes and applications to streamline business efficiency, productivity, and ultimately, business profitability and growth. Cloud ERP systems are available to users, not only from desktop and laptop computers but also on mobile devices and tablets.

With the surge in remote working, with more employees working from home now, more than ever before, cloud ERP enables fast and seamless access to business data, sales, financials, human resources, forecasting and planning, customer service and support, production workflows, and status, and a wealth of other critical operational business information.  


Different Types of Cloud ERP Deployment

A cloud ERP system is delivered over the cloud in various formats or deployments to suit individual organizations' needs and requirements.

Multi-Tenant SaaS

Single-Tenant SaaS

Public & Private Cloud

Hybrid Cloud

Benefits of Cloud ERP

In today's fast-paced business world, more and more companies are turning their attention to cloud ERP to maintain business continuity, keep up with the surge in digital transformation, and stay ahead of the competition. Cloud ERP offers businesses a wide range of value-added benefits. Here are the "Top Five."


  • Increased performance. On-premise ERP needs to reply on 'big' computer power, including extensive hardware, servers, and costly IT resources to carry the load. Cloud ERP just needs a reliable Internet connection, and it's your provider who manages the rest. As a result, your cloud ERP will perform faster and better, with little or no downtime, as would an on-premise system.
  • Reduced operating costs. An on-premise ERP solution needs hardware and an IT team to maintain it. You'll then have to purchase the system, licenses, renewals, and updates. With cloud ERP, pricing is based on a flat-rate fee, reducing your implementation costs and overall expenses, especially since your provider can manage your maintenance.
  • Easier data access. With cloud ERP, you can access your information from anywhere, anytime, with an Internet connection. This enables your workforce to work outside the office, at customer sites, and on the go, with fast, easy, and real-time data access.
  • Enhanced security. You want to keep your data safe inside and outside of your organization. Cloud ERP ensures that your company data moves securely from your systems to the host servers. In addition, cloud ERP offers strict user-level access to safeguard internal data provided and secured by the system itself.
  • Innovation. Cloud ERP fuels innovation to adapt and stay on top of today's business challenges. With cloud ERP, you get real-time visibility into your business when you need it, where your organization's data, including the latest software versions and updates, are updated in real-time on the cloud. You can drill down by using reporting apps and analytics, monitor workflows and processes in your organization, and react quickly to changes in your supply chain.

Is Cloud ERP "Right" for My Business?

When considering the five key benefits listed above, there are "tried and true" reasons why most companies would yield positive results, increase efficiency and productivity, and reduce costs by onboarding a cloud ERP system. Therefore, if your organization is thinking about implementing an ERP system, or upgrading your current ERP, cloud ERP is a strong and viable option.

If your organization is global, with offices dispersed throughout various locations, if you work closely with colleagues, vendors, and/or partners worldwide, then cloud ERP is a good fit. Similarly, suppose your business is primed and ready to grow, and implementing an ERP is on the table, but an on-premise system is not within your budget. In that case, cloud ERP delivers the accessibility and functionality you need to manage and control your business on a global scale.