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Is Cloud ERP Right For My Business 

While shifting to a new ERP system may seem daunting and intimidating to businesses, it is becoming apparent that the old-fashion legacy ERP may no longer be the most efficient way to operate. 

Software as a Service (SAAS), the replacement for Land Area Networks (LAN) and Wide Area Networks (WAN) which run via a server, is the new buzzword. Research shows that the revenues and popularity of old ERP systems is steadily declining while the adoption of cloud-based and hybrid ERP systems continues to accelerate. 

Thus the question of why to adopt a cloud ERP has arisen. 

The answer to this lies in the various benefits provided by the cloud as well as the inevitability that modern technology is veering toward a cloud based system.

Cloud ERP Benefits

As will be discussed below, there are several apparent benefits to using the cloud.

1) Financial Benefits: 

Every company wants to minimize costs while maximizes profits. Switching to a cloud system will significantly cut annual costs. One major cost cut is IT Expenditures; companies will not be required to hire as many IT specialists. Likewise, since the cloud relies on the internet and not physical servers, there will be lower electricity/energy use, saving a company money on its monthly bills. 

Yet another major cost saving benefit of the cloud is the elimination of capital cost to install and continuously run your servers. This will also get rid of the need to spend money on replacement parts or hardware for your network. Thus it is apparent that switching to the cloud provides significant financial savings.

2) Growth Opportunities: 

Experts predict that by the end of 2016 investments in the cloud will double and the use of traditional ERP systems will decline 30%. With the increase in both use and research, the quality of the cloud will increase. When a company adopts the cloud it is able to have global communication; employees are able to work independently, which can yield higher productivity and growth via more resources at the company's disposal. 

Furthermore, this will have the potential to increase revenue, something every company strive for. By and large, new technologies, in this case the cloud, generate growth as they are continually innovated and transform the way business is done.

3) Universality: 

With the establishment of a single, universal cloud system there will be more globalization. Companies and individuals will be able to have multiple devices from multiple locations working simultaneously via the cloud. This is another way to boost efficiency. Similarly, there is the ability to have more customer engagement, strong customer satisfaction is always a benefit.

4) Strong Communication: 

Having a universal system via the cloud will enhance communication; all members will be on the same page. There will be an open system so as to reduce confusion and encourage constant communication. Without effective communication a business is not able to function properly, much less survive long-term. The new technology that is the cloud provides a solution to this potential problem.

Will you switch?

Based on both the above mentioned benefits as well as the abundant research and publications regarding the cloud, businesses need to adopt the cloud. While this may appear to be a major change, in the long run businesses will be stronger and more financially sound. 

The future of business lies in the cloud, it is only a matter of time before nearly everyone will be using the cloud. The only question that remains is what is holding businesses back? 

By: Ryan Brubaker 

TEKOA ERP Software 

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