By Apoorva Kasam - December 06, 2022 4 Mins Read
A growing number of businesses rely on the increased use of analytics and BI solutions for greater efficiency within the organization. Cloud-based Enterprise Resource Planning (ERP) can be crucial for a streamlined business infrastructure.
ERP systems are invaluable in many ways- they tie many business processes and manage the flow, while eliminating data duplication and provide data integrity on a singular platform. These solutions are critical for managing all aspects of financial management, human resources, supply chain management, and manufacturing by transparently tracking all the production, logistics, and financial aspects.
While on-prem ERP is also very efficient, as enterprises go through a digital transformation, having their critical ERP platform on the cloud makes much more sense. Here are a few reasons businesses should move ERP solutions to cloud.
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The primary cost of implementing on-premises software is significantly higher as compared to cloud ERP software. The subscription cost and support are typically 20% of the initial license costs including the costs to maintain and upgrade hardware and the IT staff. Elimination of these costs can be important to smaller organizations that cannot account for the high upfront costs of on-premises ERP.
With today’s technology, companies not only need to be efficient but also surpass their competitors. AI, machine learning, and other technical innovations offer the ability to harness immense and ground-breaking amounts of data. However, cloud ERP paves a more cost effective way to leverage resource-related obstacles with AI, machine learning, and other BI tools. The companies can take advantage of an array of benefits that cloud ERP provides in absence of physical infrastructure, costs, or tech talent for on-premises systems.
The cloud ERP hosts the applications and information in a central cloud location which makes the data safer and more structured as compared to the data secured from legacy systems. This reduces the bottlenecks of various software data integration points and diminishes the chances of data inaccuracy.
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On-premises system configuration requires the fulfillment of specific business objectives, higher investments, and personal IT resources. Cloud-based ERP configurations can be performed in-house by the company. For companies that lack an IT staff with expertise, cloud ERP can make full customizations without hindering business objectives. The companies can design the system as per the requirements with minimal investment.
Cloud ERP vendors are proactively driven and comply with state, federal, and international provisions. These regulations are incorporated beforehand into cloud ERP software which ensures that the updates are initiated automatically and meet the compliance criteria of the organization. Cloud ERP system enables localization functionality that allows companies to switch between various countries’ regulations.
The flexible design of the cloud ERP solutions makes it possible to increase or decrease usage without requiring the need to upgrade and rework multiple pieces of hardware or software to make the needs meet. ERP can easily accommodate the rush of new hires, the acquisition of another business, or the addition of new product lines.
Cloud ERP systems are accessible from any device with a minimum requirement of an internet connection and a browser which makes it easier to input, compile and collaborate data from anywhere. Cloud ERP diminishes the cost of a VPN and emulation software.
Continuation of operations amid downtime is crucial. Although disaster prevention and recovery are the anchors of a company’s technology infrastructure, most companies lack in this area and are at risk with their on-premises ERP. Cloud ERP solutions are designed for disaster recovery with built-in disaster solutions. These have the ability to store data in multiple geographic locations to avoid single points of failure and shifts to back up data when failure in being detected.
Switching to a cloud ERP system offers prime benefits by adding value to the company with its tangible quantitative or indirect qualitative benefits. Even when businesses choose to migrate to a cloud ERP system, the upgrade is essentially a new implementation from the ground up, so it makes sense to shop around to ensure costs and functionalities rather than adhering to the same provider.
Apoorva Kasam is working with OnDot Media as a Global News Correspondent. She has done post-graduation in Bioinformatics and has worked in the healthcare industry. She is a technology content writing enthusiast and this is her first stint with a technology publication.
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