Cloud ERP What are the Advantages of a Cloud ERP

What are the Advantages of a Cloud ERP

Enterprise Resource Planning (ERP) is popular term which involves diverse kinds of activities that helps management to streamline their business. Cloud ERP is simply an advanced aspect of ERP. It mainly uses cloud computing platforms in enhancing business management operations. It transforms businesses and also ensures flexible business operations on regular basis.

Cloud ERP has all required aspects of business management such as sales, CRM, inventory, purchasing, finance modules and human capital management. It simply takes your business to Cloud thereby making it more accessible and productive.

Advantages of using Cloud ERP:

Minimized initial investment:
Unlike conventional onsite ERP solutions, a Cloud ERP solution does not require a substantial upfront investment. A typical onsite ERP implementation involves purchasing and maintaining servers, housing them securely, then deploying, configuring, and maintaining the software. In addition to a sizeable upfront capital outlay, this also requires the time, effort, and associated costs of hiring and maintaining a staff of experienced IT personnel. By comparison, with a hosted ERP solution the burden of implementing, maintaining, and keeping the application up to date is shifted from the customer to the solution provider. As a result, a hosted ERP solution is particularly advantageous for small to midsize organizations with tight capital budgets and limited IT resources.

Increase Return on Investment:
In keeping with the business model of SaaS applications, Cloud ERP solutions can be implemented with relative ease and integrated faster into the organization’s day-to-day business than their onsite ERP counterparts. In fact, most typical Cloud ERP solutions can be up and running in mere weeks, rather than months or even years, as may be the case with traditional onsite ERP software. This enables organizations to begin realizing the business benefits earlier, which, in turn, results in a more rapid payback, a greater return on investment (ROI), and a reduced total cost of ownership over the course of the investment.

Seamless Upgrades and add on:
With traditional licensed ERP software, organizations typically must wait for the next release to benefit from the latest features, upgrades, or security patches. In addition, the cost, complexity, and potential disruption of moving to a new onsite software version often cause some organizations to defer upgrading to the newest release. This, in turn, prevents employees from taking advantage of the latest productivity enhancing tools consistently being added to the applications. Cloud ERP systems, however, eliminate this common problem. Under this delivery model, the provider continuously and unobtrusively adds the latest features and upgrades, which means that users can be assured that they’re actually using—rather than waiting for—the latest technology, without drawn-out upgrades, customization, and consulting costs.

Reduced dependence on Internal IT Resources:
Cloud ERP systems typically require significantly fewer technical resources to manage than onsite ERP solutions because the hosting provider manages the software, hardware, and network administration. This reduces the strain on the organization’s IT department, allowing it to redeploy IT resources to focus on other, business-building tasks.

Flexible to Demand.
Cloud ERP solutions are easily scalable and flexible to meet changing business requirements. Adding or removing users can be done on demand and will simply change the monthly subscription fee. This flexibility is particularly beneficial for growing, seasonal, or cyclical businesses that need to quickly change their user base to meet their unique business requirements.

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