As cloud-based ERP solutions hit mainstream, companies are shifting their systems at a rapid rate.
According to a study in 2014 by Gartner, almost half of companies indicated that they plan to make the switch to cloud ERP within 5 years. If you are considering adopting cloud ERP for your business, understanding the benefits is a good place to start.
1. Lower capital expenditure and operating costs
Capital expenditures will be significantly lower because hardware to house your ERP system will not be needed. Operating costs will also be much lower because IT support and power to run servers are taken care of as part of the subscription. CFOs will have predictable monthly costs that they can rely on.
2. Workforce mobility
Business data can be accessed through any secure web browser. All you need is an internet connection and login credentials, and you will be able to work on critical business tasks from just about anywhere. Cloud ERP allows workers to work anytime, anywhere on almost any device.
3. Scale as your business grows
Cloud ERP allows your company to use the functionality that is needed and expand as you grow. You can adjust applications, functionalities and users to meet business demands. This makes cloud ERP a great option for organizations that are evolving to the demands of a changing competitive environment.
4. More secure and reliable data
Having your ERP stored with a secure provider is much safer than hosting with your in house IT team. A proper cloud ERP service agreement includes frequent data backups, redundancy, monitoring, physical security, EMP protection and fire safety. The high level of secure data hosting and delivery is the essence of software as a service (SaaS).
5. Faster to get up and running
Traditional ERP implementations involve cumbersome processes that can take months to implement. Cloud ERP is more flexible and allows for faster implementation of data. Training programs can be executed quicker and have your business running straight away. Integrations with other sub-systems can be carried out easily through APIs.