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ERP Systems

5 Reasons Why Businesses Should Consider Cloud ERP

September 22, 2020

ERP or Enterprise Resource Planning is a type of software that allows easier access, flow, and management of data between users and servers through the use of a shared database. It is popularly used by businesses and organizations to enable them to efficiently handle daily administrative and transactional operations such as budgeting, accounting, procurement, and inventory. It’s also an efficient way to share information across the company.

 

There are two kinds of ERP hosting: on-premises and cloud, and while their biggest difference lies on where the database is located, there are many other key advantages to having cloud ERP. But before we run through what those are, let’s first define “cloud.”

 

Cloud or cloud technology is a method of data synchronization that allows users to upload, deliver, and manage data over a virtual space in the internet, or what we call the “cloud.” The cloud supports many different kinds of data, including software, databases, and applications, that enable a network of users to access these from a single cloud. When an ERP is available in a cloud rather than a local site in the computer, it is called a cloud ERP.

 

Now, let’s discuss why businesses should consider cloud ERP.

 

Lower upfront and maintenance costs

 

Like many subscriptions to application software, cloud ERPs are paid on a monthly basis, making the upfront costs much lower than on-premises ERPs. The money you save from this one-time payment can then be used for other business initiatives, like procurement of other software or expansion of your organization’s services. The monthly subscription also comes with the benefit of not having to manually update, upgrade, or maintain your ERP software as your cloud ERP vendor will take care of these things. This in turn reduces the need for additional tech support and shrinks the costs needed for it, helping you save a lot of money in the long run.

 

Off-site access

 

Cloud ERP allows you to store, access, and retrieve data over the internet, making remote access from all over the globe possible. This also enables a streamlined workflow between users and servers whenever, wherever. And since the internet is globally available, this feature also opens many opportunities for your company to expand in different parts of the world. Upscaling your business will be easier than ever.

 

Eliminates hardware restrictions

 

Because of the online capabilities of cloud ERP, hardware restrictions can be much less of a problem. This allows companies to save a lot of time, manpower, and computer storage as a result. In addition, cloud storage can easily be adjusted and expanded depending on your company’s needs. Upgrading your data storage will not be necessary even as your assets grow, because all the information you need will be stored online.

 

 

Helps provide business continuity support

 

Creating a business continuity plan is essential for many businesses to account for unforeseen circumstances that can halt operations. Whether it’s a technical issue like a data server crash or a natural disaster like an earthquake, proper cloud ERP integration can help mitigate events that can cause workflow interruptions and loss of revenue. At the most basic level, the cloud serves as a reliable way to backup important data for the business and easily recover any lost data. However, cloud ERP can do much more by ensuring minimal downtime and allow business processes to continue uninterrupted via remote access to the company’s resources.

 

Improved security and protection

 

All computer software are prone to security breach and other attacks on privacy, and you do not want this to happen to your data. By investing in a good cloud ERP, you are paying not only for the software, but also for the enhanced customer support and data protection for your organization. In cloud ERP, the vendors are responsible for ensuring that your data is safe, while making it accessible to all authorized members of your organization.

 

Lets you focus on your business

 

Maintaining an on-premises ERP can be really time-consuming, with all the upgrades and updates you regularly have to do to make sure your software keeps its optimal function. With cloud ERP, these tasks are shifted on the vendors, and you can use your time instead to focus on things that matter for your business. Cloud ERP gets the job done, so you can get your job done.

 

Cloud ERP is a safe, efficient, and cost-effective way of storing your organization’s data and sharing it across your company. Modernizing your current processes and systems with cloud ERP is a great way for your business to step up its game and improve productivity across the board.

 

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