9 Reasons to Switch to a Cloud-Based ERP System for Your Company

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Rapidly maturing technologies such as Software-as-a-service (SaaS) and Cloud computing can handle even the most pressing requirements. Enterprise resource planning (ERP) software is one of them, and cloud-based ERP solutions now provide a vast array of options and benefits to both large and small enterprises.

 

Using a Cloud-Based ERP System Has Various Advantages

The superiority of cloud-based ERP can be observed or identified beyond the supply chain and manufacturing process. Many companies have already embraced cloud-based ERP solutions, and the results have been excellent. The nine features that make up a cloud-based ERP solution's basic value proposition have opened new opportunities for these businesses, outlined below.

 

1. Cloud Systems Typically Demand Less Upfront Investment

As proven by Nestle's ERP disaster in the early 2000s, on-premises ERP systems have a history of cost overruns and challenging implementations. On the other front, businesses and ERP suppliers have learned from their failures. The new generation of cloud-based ERP systems employs the SaaS model to deliver software that avoids many common financial issues.

This strategy provides several financial benefits since it converts ERP systems from a one-time capital expense to a continuous operating expense, eliminating the requirement for large-scale investments upfront. Businesses that use SaaS ERP systems can save a lot of money on hardware and infrastructure, labor expenses to deploy the hardware and systems, and training expenses. Because of these cost-cutting features, the overall upfront cost of implementing a cloud ERP system is generally much lower than the cost of implementing an on-premises system. Small firms that need to grow fast but don't yet have the capital to spend on their server rooms and hardware infrastructure may find this cheaper initial investment cost a lifeline.

The on-premises model might seem to be a better long-term commitment after it has compensated for itself throughout the system's lifetime. Still, that reasoning is no longer valid now that the ERP industry is firmly moving toward SaaS as the new standard. Even if SaaS ERP and on-premises ERP prices eventually equalize, the chance of on-premises ERP being phased out makes a cloud solution more appealing.

 

2. Cloud Systems Can Simplify Deployment Tactics and Help You Avoid ERP Setup Difficulties

Those high-profile ERP disasters usually arise during the deployment stage due to challenges in planning and managing the rollout across systems and departments. An on-premises ERP implementation is sometimes a lengthy and unpleasant process that leaves each department dealing with its problems while the IT department tries to stay up. Costs rise, implementation issues because production halts or slowdowns, and innovation come to a halt.

These concerns are dealt with head-on by cloud ERP software. These systems are designed to create solutions that are more responsive, adaptive, and simple to deploy. On-premises ERP implementations can take up to a year, but cloud ERP implementations typically take three to six months. This benefit is especially essential for small firms, which typically lack the time and resources needed to implement an effective on-premises ERP system — and, as most firms know, even having the necessary resources won't always save software that isn't user-friendly.

 

3. Cloud ERP Platforms Improve Visibility and Collaboration across Departments and Levels

ERP software provides businesses with the tools they need to better interdepartmental collaboration — the cloud makes it easier and faster than ever. Cloud ERP promotes organization-wide openness, collaboration, and accountability by providing:

• Interpersonal and leadership techniques are made easier with project management solutions.

• Real-time financial and operational data that gives decision-makers at all levels a clear picture of the situation.

• Resource management alternatives that assist in identifying opportunities to optimize operations and minimize waste throughout the organization, from procurement to accounting to the production floor.

• Increase security by displaying user footprints throughout the system and allowing easy inventory tracking.

• System of interconnection with third parties, such as consultants and vendors, by making it simple to provide critical information.

These qualities of cloud-based ERP help it become more than just a functional upgrade, but a real capability update that vastly increases a company's ability to respond to crises quickly and decisively.

 

4. A Cloud ERP Solution Keeps Corporate Data Healthier and More Private

Security is a key issue with cloud-based apps, which is one of the main reasons why some businesses still use on-premises ERP systems. There's a common misconception that the cloud can't match the reliability and security of an on-premises ERP system, but this is becoming increasingly untrue.

Current popular cloud ERP systems come with a security suite that rivals that of any on-premises system, and many even give some benefits that on-premise systems however do not:

• System-wide, synchronous, scheduled upgrades that patch security holes without requiring users to do any further actions

• Multiple layers of failsafe and backups that are redundant.

• Systems are safeguarded by a team of cloud security experts.

Furthermore, keeping up with the latest technological advancements is a crucial part of maintaining a safe system. While some firms continue to use on-premises legacy ERP systems, these systems are rapidly becoming obsolete.

The catch here is that cloud systems place additional security responsibilities on employees' shoulders. Because a cloud-based system offers numerous employees access to ERP data and from any location, it is up to them to minimize security concerns like exposing data on untrusted external Wi-Fi networks. Of course, good training can lessen these risks, but firms should be aware of them before switching to cloud-based ERP.

Engaging a third-party security consultant to review a cloud provider's security measures might be a beneficial investment for firms that want an extra degree of confidence. Businesses can benefit from security advice by learning how to incorporate best practices for data protection into their training programs.

 

5. Updating Cloud-Based Software Is a Much Faster and Easier Procedure

One area where cloud ERP systems outperform traditional on-premises ERP is the updating process. ERP software requires upgrades regularly to address security flaws, improve performance, and other issues. With on-premises ERP systems, this can be a lengthy and tedious process that consumes considerable IT resources and causes production delays. Thoroughly applied updates, in which different users and departments wind up with different software versions following an upgrade, can be the most difficult of all.

Software updates are supplied from the manufacturer or vendor's cloud servers in a SaaS ERP system, relieving overburdened IT teams of the aim of maintaining the system up-to-date. To ensure that system users are not affected, security fixes, software upgrades, new features, and other modifications are largely installed automatically – usually in the background.

Because the service provider's team can usually monitor and modify any user's account offsite, version discrepancies are far less common and simpler to resolve.

 

6. Cloud ERP Software Allows Businesses to Adapt, Grow More Rapidly, and Efficiently

Traditional on-premises ERP systems' scalability might be a serious drawback. A firm's organizational hardware limits an on-premises system, and the challenges of modernizing a massive legacy ERP system are notable when you factor in the fact that technology is evolving at a faster rate every day and the possibility of substantial expenditures in the Internet of Things devices, scalability becomes a critical factor.

Scalability is a key characteristic of successful ERP systems. Just about all cloud-based ERP software includes scalability features that are ideal for expanding enterprises, such as the flexibility to add more users and licenses as a company grows, expand storage, and highly beneficial for new facilities and manufacturing processes. Implementing a cloud-based ERP system has been shown in numerous case studies to boost a company's capacity to scale swiftly and add new staff and suppliers. While growing any ERP system will certainly offer issues, cloud ERP has demonstrated that its organizations’ performance is particularly well enough to manage those difficulties.

 

7. Cloud ERP Systems Make Mobile Devices More Powerful

Mobile devices have long been an important corporate tool, but cloud-based ERP enhances its capabilities by allowing advanced access and control via ERP-enabled mobile devices. The ability to provide centralized access to data from throughout a company is one characteristic of cloud ERP that makes it ideal for mobile systems and a secured environment that eliminates traditional efficiency limitations.

Regarding the complete implementation of vital mobile gadgets like phones and tablets, you'll need to use mobile-enabled cloud ERP software. This increasingly unrestricted flow of data, which is now available remotely and on-demand, has significant implications for every aspect of a business:

- Provides executives with data when and where they need to use it.

- Allows for more effective production processes by giving real-time updates from the shop floor. - Provides sales employees with the most up-to-date information, which is critical for creating the best deals.

These powerful tools enable cooperation and openness on never-before-seen scales and in novel locations — and they often fit in the palm of one's hand.

 

8. Moving to the Cloud Can Significantly Lower a Company's Environmental Impact

Many companies don't consider how much energy an on-premises server room consumes, but it's a significant amount. In 2016, data centers in the United States utilized roughly the same amount of energy as 6.4 million residences, accounting for 2% of the country's overall energy usage.

Energy efficiency is, of course, beneficial to the bottom line, and they offer yet another possible benefit of outsourcing server maintenance and power costs to a software solution provider. Multitenant servers, which combine multiple separate clients onto servers needed to handle storage space and bandwidth optimally, host many cloud ERP systems.

So, while one company moving from on-premises ERP to the cloud may seem insignificant, it's truly a major deal when so many companies are moving in the same direction.

 

9. Businesses of All Sizes and Industries can be catered to by Cloud-based ERP Systems

With so many cloud-based ERP options on the market, it's simpler than ever for a company to choose one that meets its requirements. The following are just a few of the various options for cloud-based ERP systems:

- Oracle NetSuite ERP, a widely used cloud ERP system with over 40,000 successful implementations worldwide. NetSuite is a pioneer in adaptable solutions due to its constant upgrades and flexible scalability, and it connects with a wide range of prominent platforms such as QuickBooks and Salesforce.

- Sage 300 Cloud and Sage Business Cloud Enterprise Management, two ERP packages that place a premium on providing the most beautifully powerful solutions through significant customization.

- Epicor ERP, a SaaS ERP software with advanced data and reporting capabilities. Epicor has over 45 years of extensive experience in the ERP software market, and they use that experience to deliver sophisticated data-driven ERP solutions.

 

Conclusion

Every cloud ERP software package has its own set of advantages, and each company must assess how each choice meets or fails to fulfill its requirements. But they all demonstrate a passion for using the potential of cloud-based solutions to propel the ERP software industry ahead.

Cloud-based ERP software was an interesting but completely untested innovation less than a decade ago. It's evident now that not only is technology ready for prime time, but it's also on its way towards becoming the gold standard. According to some estimates, cloud-based ERP software is now used by two-thirds of organizations. SaaS and cloud computing technologies, which provide adaptable solutions, are the trend of the future.

Organizations of all types will keep pushing forward, create, and optimize at every stage of their operations by utilizing the many new tools and opportunities provided by cloud-based ERP. The cloud ERP software system has effectively consolidated and managed data, allowing authorized users to view, check, and alters data from any location at any time. This clever technology has put all of the info at the tip of one's fingers or a few clicks away.

Remember these major benefits of changing to a Cloud ERP software solution for any organization that needs innovation in their work and growth because these elements may boost the overall growth of their business.

 

Author Bio

I’m Shalini Reddy, a freelance content writer from the city of Pearl, Hyderabad. After completing my Bachelor's in Technology in Biotechnology, I embarked on a journey to channelize my passion for writing! Starting as a medical writer to a technical IT writer at TechIntegra ERP and Brontobyte Technologies, the journey has been incredible in understanding various writing niches. My LinkedIn address is https://www.linkedin.com/in/shalini-reddy-12198318b, and that of Twitter is https://twitter.com/shalini46307221?s=09.

 

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