The Pros and Cons of a Cloud-Based ERP

So, are you thinking about implementing a cloud-based ERP system? Can this help your business to become more effective and successful? However, are you sure about the offers that you’re going to purchase?

If you are looking for a thorough breakdown of what a cloud-based ERP is, as well as its offers, then let this explain it to you.

Defining a Cloud-Based ERP 

Before making any decision, it is only vital for you to know the meaning of a cloud-based ERP. A cloud-based enterprise resource planning (ERP) software refers to the system that uses cloud computing services and platforms to help your business in completing tasks and storing data easily. This is available all over the internet.

Now, let’s move forward to examining certain characteristics of a cloud-based ERP to assess whether it is worthy or not.

Great Support 

Choosing the right and best ERP solution is crucial for any business. ERP vendors who are maintaining their ownership of hardware and software will provide your company often with extensive round-the-clock support.

In choosing where to implement an ERP solution that is on-premise, you will need to buy support packages wherein, when they are continuously released with cloud-based systems can offer an overall package.

Enhanced Security 

It may be a surprise that a cloud-based ERP provides multiple benefits, and one of that is enhanced security, but this is true. When a system depends on a cloud, it will become more secured compared to hosting data in-house.

Let put this as an example.

You are way too confident that housing the sensitive data of your business in a cloud was too risky. But what you didn’t notice is that it is becoming more apparent. A host of ERP cloud vendors are going to offer an enhanced and improved security of the environment wherein your information is stored.

It is a case of reputation to line up whenever something wrong happened. So, it is only essential that you adhere to the needs of your business first to let it grow and succeed.

Wendy Gorrie- Business Solutions Ltd.’s General Manager believes and knows that the security of a cloud-based ERP vendor provides major benefits. Locally devices are not used to store data that is accessed remotely. So, accessing the data will not need any downloading to laptops and other devices, and therefore, the data of a lost device will not be at risk as it isn’t left by the server. These are all possible but with a partnership with ERP vendors as it remains your responsibility to ensure the safety of your data.

Scalability

A business usually decides the time when an ERP solution will be implemented as it already outgrew the current system. By carefully choosing a cloud-based ERP system, your business can scale up or down quickly, depending on the needs that make it appealing to move forward together with this option.

Also, a cloud-based system offers changes that are immediate to work compatibly with your business, whereas labor and time are intensive in an on-premise ERP.

Cost Transparency 

Cloud-based ERP systems offer chances to a business for cost spreading. Using only a small implementation fee than an on-premise solution, this option can suit both small and mid-sized businesses.

After the successful implementation of the system, you can now choose a subscription model or pay-per-use to work with your business. In this way, you’ll be aware of the exact amount that your continuous expenditure will turn out. Here, your business will no longer pay for any unused service or need.

May become expensive in the long-term 

Though it offers transparency, the long-term cost should be considered prior choosing a cloud-based ERP system.

If moving to a cloud application is your final choice, you need to look in advance about the expectations of your business for the next 10 years. This is because of the periodic payments that can become costly over the next coming periods.

Lack of Customization 

An ERP solution implementation to the cloud will not enable you to do certain customization to your system depending on the specifications you want. Although it speeds up the process of implementation that is usually caused by a rigid template in place. If a personal approach benefits your business, a cloud-based ERP system may not work well with you as different third-party applications allow only for interface customizations. This may be compatible with small businesses, yet it can be large firms’ hindrance as lots are forcing to have total control over the productivity applications.

Products Suites are Limited 

Most of the businesses that offer an ERP solution focus more on particular applications having few providers that offer a single suite of products. An increase in costs is the potential result of this as it will require the integration of existing on-premise applications with available products in the cloud.

Businesses and companies with complex operations may find it that a cloud-based ERP system will not make any good for their sake as a high customization level may be required.

Connectivity Issues

When all of your data are stored in the cloud, this means that you need to trust the consistency of your internet provider. If not connected, your business will not function to its best and will only cause significant issues.

Lack of Ownership 

Vendors may be left with your updating concerns as it is less effort and time consuming, yet it leaves you susceptible to the unnecessary upgrades of your business. This can pose a problem, particularly if your business is not yet prepared for changes.

Now, let us comprehensively proceed to the pros and cons one more time.

Pros 

• Round-the-clock support is received.
• Cost transparency
• Scaling up and down is easy to cover the business’s needs.
• A high level of security can often be offered by ERP vendors.
• Leaving it in the ERP vendor’s hands can make it look less.

Cons 

• In the long-term, monthly payments can become expensive.
• The room for personalization is less.  
• There may occur unwanted upgrades.
• To access the data, you need to rely on and trust your internet provider.
• A cloud-based ERP system may not be suited for highly-complex operations.