- 6 April 2016
Cloud-based ERP software is quickly becoming the choice for a wide array of organizations because of the financial savings, increased flexibility, and more.
The basic difference between the two ERP solutions is that on-premise ERP requires on site, manual installation and maintenance, while cloud ERP (also called SaaS, Software as a Service) is a service provided in the “cloud”/internet. In this article we discuss the benefits of moving your company to a cloud-based ERP system.
On-premise ERP requires on-site IT technicians for installation and ongoing maintenance. This means that if you don’t have an IT team, you’ll certainly need to invest in one, or simply go with an authorized ERP installer. Over time, without the right partner, on-premise ERP can become costly to sustain since it requires additional labor to operate.
In contrast, your cloud ERP provider will most certainly have its own team of IT technicians to ensure the efficiency of your system and the security of your data. This deployment allows you to save up to 54% on IT expenditures.
Storage, Accessibility, and Security
Cloud-based storage is excellent for managing and accessing large amounts of data because the space online is limitless. This means that your organization can have constant access to all of your company’s data.
Accessibility is another great feature associated with cloud-based ERP. From anywhere in the world, your staff can access real-time data through smart phones, tablets, or computers without additional costs. With more data accessible to the majority of your employees, your business is assured to improve in efficiency, coordination, and much more.
Lastly, companies that provide cloud ERP typically have highly-secure networks in which they store your data. Often, they’ve set up quick conflict resolution processes and step-by-step procedures guarantying the safety and security of your data.
Though on-premise ERP systems are upgradable, there are a lot of factors that complicate the process. For example, before you upgrade a product, your previous customization must be wiped out. Once that’s completed, the upgraded version is then installed from scratch. This method takes more time, effort, labor, and therefore, money.
With cloud-based ERP, however, your provider automatically upgrades all features at no extra cost to you. This is a really quick, hassle-free process that’s regularly and efficiently completed through the cloud platform.
Speed of Deployment/Scalability
For the most part, ERP deployments require patience and careful planning. In comparison to on-premise ERP, though, cloud ERP deployments are a bit quicker. While on-premise ERP deployments take about 12 months to implement, cloud-based ERP deployments take approximately 3-12 months. This is due in part to the lack of IT infrastructure required to implement cloud-based ERP solutions.
With so many amazing features accompanying cloud-based ERP systems, it’s no wonder the solution is seeing rapid growth. In fact, Gartner – IT research and advisory company – projected an increase in SaaS-based manufacturing and distribution from 22% to 45% by 2023.
By investing in cloud-based ERP software, you can save up to 54% on IT infrastructure, upgrade your system more efficiently, and cut back on deployment time. There’s also the added benefit of larger storage space and the ability to access real-time data from anywhere in the world.