What is Cloud based ERP?
Cloud-based ERP is an Enterprise Resource Planning (ERP) software that helps organizations manage their day-to-day business activities, such as accounting, procurement, project management, risk management and compliance, supply chain operations, and more.
While traditional ERP is an on-premise system that runs on in-house servers at a company’s location, Cloud ERP systems run on a vendor-managed public or private cloud, eliminating the need for on-premise installations and offer a wide range of time, resource, and cost-saving benefits.
Why choose Cloud ERP over on-premise ERP?
Cloud ERP offers several advantages over on-premise ERP. For one, it provides greater flexibility and scalability, allowing companies to easily adjust their computing resources according to their changing needs. It also offers greater accessibility, as users can access their data from anywhere with an internet connection. Additionally, cloud ERP eliminates the need for large upfront capital expenditures and the ongoing maintenance and upgrade costs associated with on-premise ERP.
How does cloud ERP work?
Cloud ERP works by storing and managing all of an organization’s business data and applications on a remote server, accessible through the internet. This means that users can access the system from anywhere, anytime, using any device with an internet connection. The cloud-based platform allows for automatic updates and maintenance, reducing the need for manual IT support. Data security is also enhanced through advanced encryption and regular backups, reducing the risk of data loss or cyber attacks.
Benefits of Cloud ERP
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.
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.
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 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.