in: Company News
Cloud applications have taken the business world by storm. More than half of US companies now use some form of cloud software and many more plan to move additional systems to the web. Although initial cloud applications were often simple cloud-based reporting, more and more, companies are putting their core business software on the web including cloud ERP.
Companies that have installed enterprise resource planning (ERP) software have already realized the benefits of sharing data across functions, including standardizing processes, controlling costs, and providing more data visibility. Traditional ERP solutions are often housed on a company’s own server infrastructure. However, the ERP software market is going through a revolution driven by the accessibility and scalability of cloud applications. Cloud software enables the considerable agility that is needed in today’s fast-paced business environment.
Cloud applications lower costs, save time and enable greater agility
Lower Costs
With a cloud ERP, upfront costs and on-going maintenance costs are reduced, providing a faster Return on Investment (ROI). If you do not have an internal technology infrastructure or your own IT team to maintain your software, a cloud-based model offers a more cost-effective means to implementing an ERP. On-premises implementation projects are more likely to go over budget with unforeseen costs. When your ERP is hosted elsewhere, you greatly reduce the cost needed to keep your technology infrastructure current.
Faster Implementation and Upgrades
Because you do not need to purchase and install on-site technology, the cloud ERP installation can be executed more quickly with less disruption to your business. With the web-based model, you receive new features and functionality as they are available because you can automatically receive updates from your vendor. One study found that implementing cloud ERP, on average, took only seven months compared to eleven months for an on-premises solution.
More Flexibility, Scalability, and Accessibility
A cloud ERP provides access from any device on any platform without expensive software or customization. This model is especially valuable when you have multiple locations that need access to real-time updates and reports. Cloud applications increase the ability to collaborate among a global workforce, enable more agile decisions, and promote common organizational standards.
Enhanced Security and Backup
While security is a concern for any system connected to the Internet, your data can be even more secure when hosted by a provider who can provide the latest technology to secure facilities and networks. A capable hosting site will also include disaster recovery plans.
Cloud software concerns can be overcome
There are valid concerns that need to be addressed when considering a move to the cloud. These three concerns are the primary reasons companies choose to keep their ERP system on-site. A robust cloud ERP solution can mitigate and eliminate these concerns in most cases.
Security Concerns
The main concern most organizations cite as their reason for not moving to a cloud ERP is security. These companies are concerned with the safety of their sensitive data. This is a valid concern that should be addressed with your ERP vendor and hosting site. The key question to ask is whether your data will be more or less secure at the hosting location.
Lack of Control
Another reason companies may choose an on-premises model is that they wish to control their software and the upgrade process. This is often due to concerns about the need to highly customize their software to address unique process requirements. This is a concern that you should address with your vendor as cloud applications can be customized to meet specific needs.
Downtime Risk
Finally, companies are concerned about being reliant on a high-speed Internet and an external hosting site for system uptime. However, data show that externally-hosted sites are, on average, more reliable than internal systems.
Acumatica Cloud ERP is a robust cloud application that is flexible and cost-effective
Mindover Software offers Acumatica Cloud ERP which is a powerful cloud ERP solution available for small and mid-sized businesses. Acumatica Cloud ERP is easy to use, is customizable, and offers flexible deployment and payment plans. If you are ready to move to the cloud, contact us.
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