Enterprise resource planning (ERP) systems are frequently used by businesses to consolidate and organize data across the organization. Over the past few decades, there has been a progressive change in perception through ERP and cloud computing. A few years back, the majority of IT managers were hesitant to use cloud solutions, but today they are fully operational on the new cloud-based systems managing their entire enterprises.
In today’s scenario, the focus has shifted to cloud-based ERP software solutions due to a holistic approach, which encompasses nearly everything a business needs and ease to keep pace with the ever-changing need of their customer which traditional ERP solutions fall short of a significant extent.
But first what is cloud-based ERP, and why does an organization want to move this crucial business system to the cloud?
What Is Cloud ERP?
Generally speaking, Cloud ERP is an enterprise resource planning (ERP) system that runs on a vendor’s cloud platform in contrast to an on-premises network and enables organizations to access the internet. ERP software helps with procurement, production, distribution, and fulfilment by integrating and automating key financial and operational company processes. Additionally, it oversees the supply chain, orders, and inventory.
Organizations access the software over the internet, so all that’s needed is a connection and a browser. ERP software helps with procurement, production, distribution, and fulfillment by integrating and automating key financial and operational business processes. Organizations use the online software, so all they need is an internet connection and a browser. The ERP software and tools are provided and managed in the cloud, rather than being hosted on your system on-premises.
Benefits of Moving On-Premises ERP to the Cloud
1. Lower Operating and Scaling costs
Compared to on-premise ERP, cloud-based ERP systems need less setup of hardware and have lower operating costs. The majority of cloud-based ERP software company have subscription pricing plans, making them suitable for small and medium-sized businesses. ERPs that are cloud-based are more versatile and innovative. Cloud-based ERP is more scalable and beneficial to the business than on-premise systems.
2. Cloud ERPs provide more security and prevent data loss
Nowadays, data security is a top concern, and cloud-based ERP providers, like GoodBooks ERP, the top ERP software in India have built-in security safeguards to protect your data. It offers reliable backup and recovery plans. However on-premise backups are not frequently tested. Due to network or hardware problems, on-premise ERP systems are frequently at risk. Cloud ERP has robust power backups and fail-safes in place.
3. Good accessibility, collaboration, and agility
Compared to on-premise ERP, a cloud ERP provides good access, utility, and flexibility. Your ERP can be handled in the cloud, which increases business agility and ultimately enables the staff to use any internet-connected device and access cloud ERP at any time, from anywhere. There are no issues with accessing a cloud system for businesses with multiple locations.
4. Updates and upgrades are quick and simple
All ERP software requires periodic updates to improve performance and fix security issues. All ERP software company requires regular updates to enhance functionality and address security concerns. Implementing an On-Premise ERP system requires a lot of internal IT resources and extra time.
With cloud-based ERP the responsibility for updates and upgrades is upon the provider. Minor updates are automatically installed without disrupting the users while major updates are announced in advance. In this way, the latest technology helps your business.
Cloud migration brings a more secure ERP system, greater best-practice data, and cutting-edge technological capabilities are all benefits of cloud migration. On-premises ERP is frequently simply unable to keep up with the speed of a data-driven, digital market.