in: Company News
For the past 30 years, enterprise resource planning (ERP) systems have evolved into capable and stable business systems. Small and large companies alike are adopting ERP software systems at rapid rates due to their ability to improve business productivity, reduce costs, and increase efficiency. Whether they are used to supply the right information at the right time, improve inventory control, or manage employee time-sheets, ERP software has become quite useful to businesses all around the world.
However, the historically high costs of ERP software are beginning to weigh on businesses. As the economy continues to change, more and more companies are hesitant to invest in new ERP solutions. Due to necessary budget cuts and business expenses, ERP was predicted to be placed on the backburner until further notice.
That is, until the Cloud emerged.
Experts are predicting Cloud ERP to change the ERP market as we know it. The consumer world is increasingly moving to the Cloud so it only makes sense that the business world would soon follow. Over the next ten years, business technology experts predict that more and more businesses will move to Cloud business solutions, including ERP software solutions. This transition, however, is not expected to banish on-premise ERP solutions. These solutions are still viable to a large majority of businesses, particularly larger businesses. While the Cloud will certainly gain growth and momentum over the next few years, on-premise solutions are expected to stick around for the time being.
What are the benefits of moving to Cloud ERP?
Many companies are investing in Cloud ERP software solutions primarily for their low IT costs and simplicity. On-premise ERP software has a reputation for being expensive as far as IT is concerned and complex in nature. They are known for being difficult to implement and costly to maintain. Today’s budget-conscious companies need a solution that can be implemented quickly at a low-cost. Cloud ERP, in this instance, fits the bill.
But how do you know if it’s time for your business to move to the Cloud? First of all, you need to know your business and your market. If it does not make sense to move your software solution to the Cloud, don’t do it. It may not be the right time for your market, or it may be too high of a business risk at this moment. Do not jeopardize your business to simply follow the latest technology trend. Make sure that moving to the Cloud is the best answer to meet your business technology needs.
Many companies are understandably cautious when it comes to moving important data (such as the data stored in ERP systems) to the Cloud. Security concerns are high, and many businesses worry about downtime. Before you decided whether or not to move your ERP system to the Cloud, consider the following questions:
- Do you have the right skill sets within your company to deal with moving to (and maintain ERP in) the Cloud?
- Are you aware of the legal and financial responsibilities that come with moving to the Cloud?
- Is your company’s facilities set up for this kind of technology?
- What benefits will the Cloud bring to your business? What about the challenges?
By answering the above questions, you can begin to determine whether or not your business is ready to move to Cloud ERP. Keep in mind that this trend is expected to grow in the next ten years so you don’t need to make a decision today. If it doesn’t make sense to move to the Cloud now, wait another two years and reevaluate. If you are ready to move to a Cloud ERP solution, contact us today. We’d be more than happy to walk you through the selection process and help you determine if it makes sense to move your ERP solution to the Cloud.