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Benefits of having cloud-based ERP for your company

Posted On September Friday 24, 2021

Is your business growing? Are you trying to streamline your business operations figuratively and theoretically? From inventory to delivery, you are monitoring each step by keeping track of everything, but are unable to do it accurately, why? Well, let us tell you – the traditional on-site enterprise resource planning (ERP) systems often prove too rigid to keep in pace with emerging technology and business practices. That’s why the cloud-based ERP has become the preferred software deployment option for businesses of all sizes.

Today, customers expect businesses to meet them anywhere, anytime, on any device. Processes within the organization are changing and require real-time data to maximize results. In order to enable innovations and services at the speed dictated by the market, companies must adopt cloud-based systems. The cloud is the direction in which the digital age is heading. Some companies still see ERP cloud as the future, but that’s what businesses need now. The cloud-based ERP is not something that is yet to come – it is already here.

According to the latest forecast by Gartner, Inc, “Worldwide end-user spending on public cloud services is forecast to grow by 23.1% in 2021 to total $332.3 billion, up from $270 billion in 2020.” Companies that do not adopt these cloud-based services will not only find themselves disadvantaged: they will soon be outdated from the business industry.

About cloud-based ERP

Cloud ERP is an enterprise resource planning (ERP) system that runs on a vendor’s cloud platform enabling organizations to access data via the internet instead of local data servers. It serves as a centralized repository for all business data and automates essential business functions, including inventory, order, supply chain management, procurement, production, distribution, fulfillment, etc in a single platform.

In addition, the cloud-based ERP generally has much lower upfront costs as the resources are rented on a subscription basis rather than purchased directly and kept on-premises. Thus, it makes cloud ERP a more financially feasible option for organizations. In fact, 95% of businesses found their processes improved after implementing cloud ERP in their business.

While technically, the most obvious difference between cloud ERP and on-premises ERP is where the software is located and who manages it, but there are other significant differences as well. So, here in this article, we will discuss some of the other main benefits of cloud ERP software.

Benefits of cloud-based ERP

The benefits of integrating a cloud-based ERP in the daily operations of a business are innumerable. But, for you to see the potential of a cloud-based enterprise resource planning system, we have highlighted the following 3:

#1 Lower operational cost

Traditional ERP requires the purchase of the software, the associated licenses, and the hardware to support the solution. You also need to hire personnel for installation and maintenance. And all of this drives up the overall IT budget, which most SMBs cannot afford right away. Whereas, with a cloud-based ERP, you usually only have to pay a flat monthly fee subscription, so the total cost of implementation will likely be far less than traditional ERP.

Furthermore, the cloud ERP solutions are quick, easy to deploy, and modular enough to be customized at a low initial cost, which helps in reducing the overall business costs.

#2 Provides more mobility to the business

Nowadays, enterprises are expanding rapidly and are facing problems such as how to effectively manage personnel, costs, and other business functionalities while expanding overseas. The cloud-based ERP effectively solves this problem as all the data are available in the cloud. Also, the cloud deployment model does not require any additional infrastructure installation, which considerably reduces the time and cost of establishing new business outlets. Thus, by implementing cloud-based ERP, users are no longer limited to the four walls of the office. They can access the system and operate it from anywhere, anytime, and via any device!

In addition, under the cloud-based ERP model, companies do not have to constantly upgrade their systems to obtain new features and new updates because cloud-based ERP is easier to upgrade, and in most cases, vendors will automatically provide patches or updates.

#3 Enhanced Security

Storing data in the cloud is actually more secure than storing it in an internal system. With traditional data storage, an employee can accidentally make the system vulnerable or share sensitive data. Whereas, in cloud systems, managers can limit access to certain files and, as long as the passwords are secure, the data will also stay secure.

ERP Cloud solutions offer a high level of security and are often much more efficient than what a company can afford internally. This observation is not linked to a lack of competence of internal IT departments, but the simple fact that the cloud environment makes it possible to monitor access to the system while restricting any changes or removal of data. This way, errors or violations can be identified before something is exposed.

On the other hand, with the possibility of backup, encryption solutions, and disaster recovery, employees can also work calmly without any fear of cyber threats from their end.

Wrapping Up

The ability to start small and achieve rapid time-to-value is one of the reasons why intelligent NetSuite cloud-based ERP is becoming such a popular platform and brings real business value to adopters. All the benefits are available in single platform, and the cloud model is becoming more and more attractive every day.

If your organization is struggling with an on-premise solution or traditional software and is ready to implement cloud-based ERP, we would love to help you out. As an Oracle NetSuite Certified Partner, Techcloudpro can help you streamline your business process by recommending the right modules/solutions based on your specific business needs.

If you want to know more about our cloud system, do not hesitate to contact us at hello@techcloudpro.com, we will be happy to help you.