A 2014 Gartner report found that 47% of organizations surveyed had plans to move to a cloud ERP system within 5 years. However, only 2% had done so already. And 30% said they had no plans to move to a cloud ERP system at all. Surprisingly, small and medium organizations are ahead of larger companies when it comes to adopting cloud ERP, many of whom still prefer to keep their ERP in-house, speaking to comfort levels.
Some benefits a cloud-based ERP system could bring you
- Implementation is faster and easier: The software provider entirely manages a cloud ERP system. Once the local data is uploaded to the cloud, the vendor takes the responsibility to customize the software to meet business requirements. This takes a huge load off your organization.
- 2. Saves you money: Since the vendor handles implementation, you’ll save money and other resources otherwise required for deployment, development, and testing. Post implementation, the vendor is once again responsible for the maintenance and update of the software as well as providing technical support.
Since the vendor hosts the ERP software, you will save on infrastructure upgrade and maintenance costs.
ERP vendors already have the comprehensive security infrastructure in place to keep your data safe. This means you won’t have to invest in additional resources to maintain security (firewalls, antiviruses, etc.)
- Software updates are streamlined: New features are rolled out by EPR vendors on a regular basis. With cloud ERP, you have the ability to choose new features. You may even have the flexibility to control how the roll out of updates within your organization. For example, you can release the latest updates to the CRM and sales sections of your organization and withhold it from other departments based on your requirements or release them after analyzing the updates.
- Scalability is simplified: With cloud ERP, when the time comes to scale up your operations, you’re faced with an easier task. The vendor will simply assign additional infrastructure to meet your new requirements.
Conversely, when you decide to downsize, you can easily switch to a lower license package to suit your reduced operational requirements, thereby lowering costs.
- Availability and accessibility are improved: With cloud-based ERP, you’re not tied down to your organization’s “locked-in” infrastructure. Instead, it can be accessed from different devices, from almost anywhere. If required, employees can simply enter login credentials on their phone or personal laptop to access your ERP ecosystem. Cloud ERP thus facilitates remote office, BYOD, and remote workforce cultures.
- Safety is improved: ERP vendors maintain security 24/7. Even in the case of contingencies, they have effective plans in place to ensure business continuity. While it’s not impossible for an organization to maintain the same level of security, it adds to the cost of maintaining an ERP system.
Adopting cloud-based ERP has several more advantages for your organization. However, there are also variables that you need to consider while choosing. It all depends on your organization’s needs. PSI can help you decide.
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