Benefits Of Cloud ERP
Cloud ERP brings a new way for organizations to manage their operations better, streamline their processes and take care of their accounting. Cloud based ERP promises SMEs to transform the way they work. For SMEs, ERP takes off the challenge of server and storage space while buying traditional ERP software, thus reducing cost and at the same time the concerns related to integration.
A renowned research firm predicts an increasing adoption of ERP public cloud applications in the next five to ten years. It forecasts that this will lead to the disruption of the traditional ERP deployments.
The most interesting benefit of cloud-based ERP software is that it makes it easy for companies to share unified information across multiple departments. A cloud based ERP integrates multiple business functions to one system, leading to a better enterprise with the consistency in the information shared across all departments.
Benefits of Cloud ERP
There are many features of a cloud-based ERP which leads to a host of benefits for end-users. Businesses do not need to set up a dedicated infrastructure; these results in significant IT cost savings that would be otherwise spent servicing and maintaining the infrastructure. In addition, a cloud-based ERP model provides high scalability for businesses, especially the SMBs who are often cash-strapped. Companies using the on-premise spend a considerable amount on acquiring the equipment and the expertise needed by their IT team to understand the sophistication of an ERP software when it is upgraded.
Businesses which make transition from legacy ERP systems to cloud-based systems gain benefits of a larger number of functionalities and personalization features, without sacrificing on cost. The advantage of universal accessibility of data—anytime and anywhere, irrespective of the device used—makes cloud deployment of ERP vastly popular with enterprises. This lends enhanced visibility of crucial business functions. Small businesses looking for agility find the cloud deployment of ERP very helpful since they do not need to spend on costly on-premise software. In essence, the end-customers move from maintenance mode to innovation mode. To corroborate the trend, companies in many global markets currently witness a major cycle of legacy ERP replacement with that of cloud-based ERP.
Here is a list of few more benefits that Cloud ERP provides –
- Quick Implementations – Through Cloud ERP the biggest benefit SMEs get is faster implementation and zero downtime for upgrades. An on-premise implementation takes more time, more IT effort, and more management of the entire process. The challenges related to on-premise ERP deployments at times prevent business from upgrading to new features to avoid downtime, etc. With cloud ERP this is a piece of cake as a quick deployment can be done with zero downtime.
- Better ERP Performance – With cloud-based ERP solutions accessing ERP is easier and quicker. All business need is a steady internet connection which helps them access the cloud ERP from anywhere, at anytime. The performance that the SMBs get throughout is far better than the traditional ERP software.
- Increased Security – Cloud ERP solutions offer enhanced security to make sure your important data is secure with multiple layers of encryption. There are still organizations who believe cloud isn’t secure which complete is a myth.
- Continued Support – Mostly cloud ERP providers offer a round the clock support and hence issues get fixed quickly, if any. Apart from this regular updates as per the industry is part of the benefits, so that you don’t have to worry about meeting any new tax norms, etc.
Pitfalls in implementing a cloud-based ERP
With myriad benefits of automation, standardization, and autonomy that businesses gain by implementing cloud-based ERP, the rate of its implementation should be expectedly high. However, the rate of its adoption has not caught up with enterprises with the same pace as that of on-premise.
The way forward…
In spite of these constraints, the scenario is encouraging for ERP cloud providers. Over time, cloud deployment models for ERP will matured to a level that will enable them to overcome these challenges. Companies prefer a hybrid cloud strategy in which they combine private, public, and even on-premise ERP to find best-fit solution; the best fit cloud ERP solution is one which takes technology out of decision making.