The Advantages of a Cloud-Based ERP System

Keep Pace with the Technology

Research suggests that “approximately half of ERP customers are on releases that are two versions behind the current release, which may be four years old or more.” Generally, companies find themselves version-locked with their legacy software because of the prohibitive costs associated with upkeep – which often range from half to 90% of a company’s I.T. budget. Having grown accustomed to an ERP that still works ‘just fine’, such companies prioritize other capital projects.

While ‘just fine’ might do for the here and now, an outdated ERP system will always stand in the way of your success. Sooner or later, it will deprive you of the technological means to seize new business opportunities and stunt your company’s potential for growth.

Cloud technology affords you a “version-less” system that makes it easy to benefit from the pace of innovation. Updates on the platform are automatically performed by the service provider. You thus consistently rely on the latest product improvements and an updated database without having to deploy an IT team on site, accrue additional fees, or risk the stability of your software architecture. That is how cloud technology gives you a dependable ERP that is always up to date and running at optimal efficiency.

Easily Access Your Data from Anywhere, at Anytime

With on-premise ERP systems, remote access to the system is achieved via a Virtual Private Network (VPN). The implementation of a VPN can be costly and its integration with your system difficult to achieve. Cloud-based technology, on the other hand, spares you the costs and troubles of integrating a VPN to your software architecture. Cloud-based ERPs are accessed on most web browsers and mobile devices; as there is nothing to install, they will run on any operating system.

Cloud technology is also better suited to the reality of decentralized modern companies. It is not uncommon, nowadays, for an organization’s management to operate from more than one location. With a cloud-based ERP, your management can operate from various offices all over the world while referring to the same data and information – updated in real-time on the platform. This helps decentralized companies avoid operational delays and the risks of managerial confusion.

Rapidly Scale to Growth

Commercial success importantly hinges on a company’s ability to be responsive to market dynamics, opportunities, and new consumer trends. With cloud technology, you can efficiently scale up to growth to seize new opportunities or scale down to adapt your operation to business cycles. The system’s various modules and capabilities can rapidly be enabled or disabled to create an ERP that is continuously fitted to your requirements as they evolve.

Cloud-based technology also makes it simpler to implement and integrate other business solutions to your software architecture, such as Warehouse Management Systems, Material Handling Equipment systems, eCommerce platforms, etc. With the right implementation partner and the proper middleware, implementing Magento or Shopify to enable your operation with eCommerce capability is done rapidly without compromising the stability of your system.

Yet another significant advantage of a cloud-based ERP is that it simplifies the acquisition and integration of new facilities to the company’s global system. It affords your company’s network more flexibility by doing away with a centralized system, sparing you the costly and time-consuming implementation of on-premise solutions in new facilities, as well as the need for dedicated I.T. teams to support the solution at each location.