Cloud Computing: The Future of ERP Software

By Marc Talks Tech / December 14, 2017 / Next Wave
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ERP SoftwareAn enterprise resource planning (ERP) software is a very important tool in the success of any business, as it allows companies to integrate critical business functions and processes like marketing, product planning, sales, distribution, and even human resources into one consolidated and comprehensive structure. Cloud ERP, or online ERP, is a type of Software as a Service (SaaS) that makes it possible for users to access ERP software on the cloud.

Cloud-based ERP vs. on-premise ERP

There are two types of ERP systems: cloud-based ERP and on-premise ERP. The main difference between the two is where its infrastructure is physically located, but the differences do not end there. With an on-premise ERP, companies need to purchase a software licence, as well as set up the infrastructure of the data centre where it will be deployed.

Cloud-based ERP, on the other hand, uses the SaaS model, so it does not need to house any of the data centres needed for running the system. It allows an organisation to access the system over the Internet and outsource its operations. This means lower upfront and operational costs for the organisation. There is also no need to purchase any expensive software licences since it is an on-demand system where you only pay for what you need.

Choosing the right cloud ERP provider

Cloud-based ERP is a great option for businesses that do not want or need the extra cost of purchasing a software licence and equipment, but the truth remains that not all of them are created equal. When choosing a cloud ERP provider, you need to consider some factors to make sure that you are getting the best services for the specific needs of your business.

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The delivery model should be flexible enough that you will not need to make any major changes to the user interface and configuration. It should also be easy to scale up or down as needed. You should also carefully assess how secure the system is since it is in the cloud and a hacker can easily breach weak security details.