Is Cloud ERP Really Taking Off in the Business World?

We think it’s safe to say that Cloud computing is here to stay. Wariness of the Cloud abounded when it first emerged onto the technology scene; however, as security measures have increased and businesses have grown more comfortable with the idea of Cloud computing, the adoption of Cloud-based business solutions and services has started to grow. As awareness and education about the Cloud has increased, companies around the world are realizing that Cloud business solutions (Cloud ERP in particular) are just as beneficial as their on premise counterparts.

In fact, according to a recent survey performed by Gartner, the Cloud is on everybody’s mind. Forty-seven percent of businesses surveyed by Gartner said they plan to move their core ERP systems to the Cloud within the next five years; only thirty percent plan to stick to their on premise solutions for the foreseeable future. This high interest in Cloud ERP can be attributed to the administrative feature of ERP software. Businesses who typically use ERP for financial and human capital management purposes have a wider range of Cloud options to choose from as opposed to businesses who use ERP for manufacturing purposes.

Cloud ERP Adoption Rates Grow Daily
The reality is that Cloud ERP is accelerating faster than even Gartner can predict. Many businesses – particularly larger businesses and manufacturers – are moving to (or planning on moving to) a hybrid ERP strategy to adopt the Cloud. Executives and manufacturers are citing many benefits to moving to a hybrid (also known as two-tier) approach, including faster time-to-market while reducing the cost of quality, an increase in compliance, and greater operational efficiency. In fact, experts predict that manufacturing and distribution will be some of the largest sectors to adopt Cloud ERP solutions in the next ten years. According to the research, the catalyst for this growth will be hybrid ERP adoption.

Hybrid ERP Systems Spur Business Benefits
It’s important to note that hybrid ERP is not replacing on premise ERP software; it’s complementing it with more flexible, agile, lower cost Cloud-based ERP. On premise ERP solutions still have value, providing businesses with the standardization and consistency they need in a back-office system. When businesses embrace Cloud ERP while continuing to maintain existing on premise ERP software, businesses can:

  • Increase their focus on core business processes by continuing to maintain them on premise while enabling market-facing processes in the Cloud
  • Infiltrate new markets and geographical regions while continuing to maintain business flexibility and agility
  • Achieve a lower total cost of ownership (TCO) and adopt more standard processes
  • Integrated newly acquired business into existing ERP systems
  • Migrate their spending over time from Capital Expenditure to Operational Expenditure

Overall, the Cloud is transforming business as we know it. It’s making us more productive, more effective, and more capable of solving business challenges, especially when paired with on premise solutions. Hybrid ERP solutions can help companies improve their bottom line and overcome key technology challenges, such as continuing to operate efficiently while adapting to rapid changing business needs. If your company is considering moving to a hybrid ERP solution, we suggest you begin by evaluating:

  • Where your current ERP implementations are succeeding and failing
  • Which departments require customizations that are too difficult or costly to achieve with an on premise ERP solution and could be better served through the Cloud
  • Whether or not Cloud ERP is a cost effective route or just a temporary solution during a crucial upgrade to your core ERP system
  • Whether Cloud ERP is the right fit for your off-site division or manufacturing operation without the budget to support traditional on premise ERP deployment

If you think your business could benefit from Cloud ERP, give us a call today. We offer a variety of Cloud ERP solutions designed to fit your enterprise resource planning needs, whether that be as a purely Cloud-based solution or a more hybrid model. Learn more about our Cloud offerings by going to our Acumatica Cloud ERP page. In addition to ERP software, we also offer Cloud services on all of our business software solutions, allowing you to gain the benefits of the Cloud through any (and all) of your business solutions.

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