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Cloud or On Prem ERP - Making The Choice

 
2017-07-31 
Joy Attaway 
 
Cloud ERP is typically provided as a SaaS solution (software as a service) while a traditional ERP application has its own infrastructure for the company. There are numerous benefits that a company should know before they decide to implement a legacy ERP rather than Cloud ERP. In many ways, Cloud ERP is a smarter approach for a business than the traditional choice. This blog will dig into specific real world reasons for a company to choose the Cloud. The bottom line: Cloud ERP is a great way to reduce overhead expenses and increase a company's efficiency. How? Lets take a look.

Low Capital Expenditures

A huge advantage to setting up a Cloud ERP is the low cost of implementation. On-site ERP systems necessitate large investments to buy and run the software, as well as the servers, hardware, personnel, and server rooms. In contrast, with Cloud, a company simply tailors the software to their requirements, then access it with their internet connection. Instead of upfront costs, the Cloud is more like a subscription fee-based model. Instead of maintaining the system and personnel, the company pays the provider to manage it for them. They make sure your data stays secure, that the system is always up and running, and that updates are made when necessary.

Rapid Implementation

Rather than having to set up an entire infrastructure in order to operate, a company simply sets up the Cloud ERP system and works off the internet. Plus, the company does not need to hire personnel in the IT department solely to overlook the system. Setting up a simple internet connection is far quicker than setting up training programs, servers, and entire facilities in order to get the company in working order. This means that a company can start making money faster, along with saving money from the initial set-up (Fesak, 2015).

Universal Accessibility

Cloud ERPs offer real-time data that can be accessed remotely through the internet at any time. This means that employees and managers can see information on any of their electronics with internet capability, increasing productivity while away from the office location. This is accomplished without the extra fees of setting up remote usage that would accompany the use of a traditional ERP.

Speed of Deployment

Cloud ERPs are more flexible than their traditional counterparts. This includes considerations such as adding access to more employees immediately, which decreases the time it takes to get a product into the marketplace. In the end, how does Cloud ERP open new opportunities? It enables a company to spend less money starting up their ERP system and lets them invest that money into their actual money-making practices. In one study, they even found that enacting a Cloud ERP cost 50 percent less than a traditional ERP system over four years for a mid-sized company with 100 employees. Those numbers can mean life or death for a company, so the change is worth it! 


 
 

 

 

 

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