How Can Cloud ERP Software Benefit Your Business?
Cloud-based Enterprise Resource Planning (ERP) solutions have become a popular alternative to traditional or on-premises ERP. Not only have cloud ERP systems been a disruptive trend within the ERP market, but they have also caused the market’s remarkable growth in recent years. In fact, the cloud ERP market is expected to increase from $18.5 billion in 2016 to $29.8 billion in 2021.
What Is Cloud ERP Software?
Cloud ERP is a Software-as-a-Service (SaaS) – typed of cloud computing – that allows you to access ERP software over the internet. Unlike on-premise software, which is installed locally on your company’s computers or servers, cloud ERP software is hosted by your vendor’s servers and accessed using a web browser. Because cloud ERP software can be easily accessed online, you and your employees can use business-critical applications at any time and from any location.
The Benefits of Cloud ERP Software
Cloud Based ERP software comes with a lot of features that lead to a host of benefits for end users. Here’s a look at some of the benefits that cloud-based ERP software provides
1. Affordable Operational Cost
Because a cloud ERP solution doesn’t require a dedicated infrastructure and human resources, your company can save a lot of money that would be otherwise spent maintaining and servicing the infrastructure. Unlike traditional ERP, which is generally priced under a one-time perpetual license fee, cloud-based software is priced under a monthly or yearly subscription. This allows small and mid-sized businesses to leverage the power of an ERP system without the need to stretch their budgets.
A study commissioned by a cloud computing company revealed that over a four-year period, the total cost of ownership (TCO) of cloud-based ERP system is 55 percent lower than on-premise ERP for a 52-employee company, 50 percent lower for a 100-employee company, and 35 percent lower for a 200-employee company.
2. Easy and Faster Implementations
A cloud ERP system is easier and much faster to implement than an on-premise system because it’s hosted by another company and doesn’t require servers, IT staff, and other equipment that would be usually necessary to support it. Instead, your cloud ERP software provider manages these. All you have to do is simply implement the software to your company’s requirements and then access it through your computer’s network.
Because cloud-based ERP can be accessed from anywhere and at any time with any internet-enabled devices, such as tablets, laptops, and smartphones, you can share data more easily across locations and departments. And because everyone in your company can exchange data through a common interface, the opportunity for collaboration is increased, and the chances of interpreting the data differently between functions are reduced. The agile features of a cloud-based ERP system make it a scalable option for mid-sized companies.
4. Superior Data Security
Many companies today turn to cloud-based ERP systems because cloud vendors tend to have highly-secure environments. Cloud ERP vendors have very strict expectations for their security and ensure that your company’s data has been backed up and that there’s a disaster-recovery plan in place.
5. Increased Productivity
Moving your current ERP system to the cloud increases your company’s productivity. Cloud-based systems have minimal downtime and allow for a greater degree of automation. Because your company’s data is in the cloud, systems like online order-management are updated in real-time, which reduces the need to manually transfer data from one source to another. This allows your employees to focus on more strategic, business-building activities, such as improving customer-facing operations and enhancing vendor relationships.
6. Improved System Performance
Not only can cloud ERP provide greater flexibility and better data security but better performance as well. Cloud-based ERP usually delivers better performance than the traditional ERP solutions, as cloud software architecture is designed from the ground up for optimal network performance (which translates to better application availability than on-premise systems). Cloud ERP also delivers optimized performance that can adapt to your company’s needs. If there is a surge in your business, the cloud-based system automatically adjusts and delivers additional resources to handle the growth.
Taking Advantage of the Benefits
Whether your company is a nonprofit organization, a small business, or a multinational corporation, you can benefit from cloud-based ERP system and its ability to increase productivity and effectively handle growth while reducing costs. Contact us if you have any questions or would like more information.