Running a business can drain you of energy, that’s how much effort it takes. To expand your business, you need to be more productive and efficient. You can only get ahead of the competitors if you are more productive than them. Now, this is where Enterprise Resource Planning (ERP) comes into play. It connects all the systems and processes like supply chain, commerce, financials, manufacturing, reporting, and human resources to a central system. Most businesses have some form of system for this, but there are limitations to them as all they can do is perform daily business processes and do not really contribute to future growth. Cloud ERP system is a type of ERP that is managed and provided by vendor offsite. The most common model of this is “Software as a service” (SaaS).
Key differences between on-premise ERP and Cloud ERP
- Deployment
For an on-premise ERP system, the business has to buy the servers, software, and essential hardware. On the other hand, there is no such need for cloud ERP systems.
- Implementation
Local installation is required in hosted ERP. The business has to buy and go through the implementation process including customizations. It requires regular maintenance for which IT staff is hired.
In the case of cloud ERP, everything is done by the vendor and can be accessed whenever required via the internet. The time taken at implementation is lower and the upgrades are automatically provided by the vendors.
- Total cost involved
On-premise ERP has to bear the additional costs of training and support of the operation and also during the upgradation.
The cost is less as compared to the traditional ERP system in the case of cloud ERP.
Why Cloud ERP?
As the world is going through a digital transformation, it is only wise to step towards a cloud ERP system. It can benefit your business in the following ways:
- You can invest for smaller periods by subscribing to monthly, quarterly, semi-annual, or annual services.
- As everything is handled by the vendor, the IT staff can focus on other issues faced by the business, increasing productivity.
- The data insights are updated regularly. The accurate data visibility and analytics help the management to make better decisions.
- As the data is available on the cloud, you can access it from any gadget including, mobile phones, at anytime and anywhere.
If you want to enhance the overall productivity and growth of the business, you can opt for a cloud ERP system. As the economy kept changing continuously, a cloud ERP solution makes better sense as it has the right flexibility.
