What are the Advantages of using a cloud ERP solution?

A cloud ERP is enterprise resource planning software hosted in the cloud and managed by a vendor. This vendor takes care of the application, data storage and underlying operating systems.

They also manage servers, physical data centres infrastructure, security updates, feature upgrades, and other administrative tasks. It is a massive relief for businesses.

Cloud ERP solutions are less expensive than traditional ERP software systems, which require a similar level of time and financial investment. Additionally, cloud ERP solutions are available to small and medium-sized businesses. It allows smaller businesses to enjoy process automation, increased efficiency, better data accuracy, and improved business performance.

Enterprises have seen a significant shift from traditional ERP systems to cloud-based solutions. It was no longer necessary for businesses to buy a system and maintain it financially. Businesses no longer need to spend valuable IT staff time on software maintenance or suffer long implementation times and complex upgrades. The initial cloud ERP offerings in the mid-2000s were limited in their functionality, not without flaws, and they weren’t even designed for cloud computing.

Enterprises found it challenging to embrace them. Businesses could not fully embrace these early solutions because they were rigid and difficult to integrate. Many of these limitations have been overcome by cloud-based ERP solutions that offer substantial benefits.

Advantages of using a cloud ERP solution?

Cloud-based ERP systems offer many benefits. Here are the top reasons why companies choose cloud ERP solutions to replace on premise.

  • Cost

Cloud ERP offers many benefits, including lower ongoing and upfront operating costs than on premise. On-premise ERP systems require paying for the software license and servers, energy costs, and consultants. Backup, security, database creation, management and maintenance are all part of the cost. Cloud ERP allows companies to pay only for their use and no additional expenses. Cloud ERP is less expensive and more transparent. It makes costs predictable and easier to manage. Cloud ERP users can choose to pay a monthly subscription or pay-per-use.

  • Upgrades

ERP systems on premise take a lot of time and require contractors to update and upgrade. Cloud ERP systems can be set up in as little as 30 minutes and are usually available within a few hours. The fact that vendors handle updates means little or no disruption to business operations. It ensures that systems always have the most current, most valuable technology.

  • Implementation Time

Businesses often face the most significant challenges when trying to implement new software. It can take longer and often extends past the target deployment date. Cloud ERP solutions significantly reduce the time it takes to implement. Cloud ERP solutions save time by not requiring IT staff to be trained, hired or purchased hardware, and creating data security protocols. Cloud solutions are much simpler and faster to implement for businesses.

  • Accessibility

ERP cloud services offer a significant advantage: you can access software and tools from any device with an internet connection. The cloud solution allows the business, its partners, customers and approved suppliers to access the information at any time. It allows business staff to communicate, collaborate and perform tasks like tracking expenses, inventory or event time easy – from anywhere without on-site.

  • Scalability

Cloud ERP systems are more flexible than traditional on premise solutions and grow with businesses. Cloud ERP systems can start small and add functionality as required without additional hardware. Cloud solutions don’t require local servers, and cloud vendors have data centres worldwide, so new units can quickly bring online. Businesses can also adapt faster.

  • Customizations

On-premise software allows customizations to be made, but these are only available for the current version and may not be implemented with older versions. It is why businesses often allow technology to become outdated. Cloud ERP can quickly adapt to the business’ requirements. New modules can also add to cloud systems without requiring downtime or purchasing new hardware.

  • Secu rity

There is a risk of data loss when using on premise solutions, mainly if there is a natural disaster, theft, or technology failure. Any business should be concerned about having an outside vendor host their company data. However, cloud-based ERP providers can offer a greater level of security and compliance than most businesses can afford. Cloud providers provide enterprise-grade security and data encryption. They offer disaster recovery and data backup services to ensure that your data is safe.

  • Integration

Cloud systems can also integrate with other solutions such as QMS and MRP. Many cloud ERPs have complete service enterprise platforms which seamlessly integrate with other solutions to streamline communication and management across many business functions. Integrated solutions have a tangible impact on your business’ success. For example, connecting your ERP and CRM systems can give you greater visibility into your entire supply chain. It allows employees, departments, and partners to collaborate and offer better customer service.

  • Business Productivity

One of the main reasons businesses prefer cloud-based ERP software over on premise is its efficiency. It promotes business productivity. A business can focus on the more essential business tasks that will help it grow rather than worrying about budget and time allocations.


Cloud ERP success starts with choosing a qualified vendor who can successfully implement the system and provide support throughout. A partnership between vendor and business is key to the success of cloud-based businesses. Successful implementation is a journey. Vendors and businesses need to be open and transparent with each other, communicating their needs and limitations effectively to achieve the desired outcome.

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