Cloud-based computing enables users to access software applications run on shared resources, such as disk storage, processing power, or memory on the Internet. These resources are accessed from remote data centers that host a variety of applications on an array of platforms.
Guru Solutions offers Cloud ERP to its clients. Cloud ERP (Enterprise Resource Planning) is Software as a Service (SaaS) enables users to retrieve applications through the Internet:
- Cloud ERP is typically less expensive upfront because the resources accessed by the business are leased per month instead of purchased by the business and maintained on its premises.
- Cloud ERP provides businesses with access to critical apps, from any location and at any time.
Differences between On-Premises ERP and Cloud ERP
The primary difference between ERP at the business and Cloud ERP is merely the physical location. However, other important advantages, differences, and advantages of Cloud ERP software include:
- Most small to medium-sized businesses and organizations appreciate the value of the Cloud.
- Cloud ERP offers the business with full access to apps at a lower upfront expense.
- Businesses using Cloud ERP don’t need to spend money on software and hardware.
- With the cloud provider, the company can quickly scale business productivity as the business grows or acquires new assets.
Cloud ERP Purpose
If a business is growing or maintains management systems, invests in hosting, hardware and software to accomplish a project, accounting, and distribution management, access to an array of functions on demand.
Importantly, when the business invests in a true cloud system—one that’s built on multi-tenancy and doesn’t need a vendor to “maintain” the system—Cloud ERP/CRM is very cost-effective and efficient.
A true cloud system accommodates platform-specific software, such as Salesforce and NetSuite.
Cloud ERP Benefits
Cloud ERP reduces business costs because:
- The business user avoids investing significant upfront costs needed to create its computing infrastructures, such as data servers or hardware.
- The business needs less support from IT services. This critical support is offered by the vendor’s data center.
- The business doesn’t pay for expensive app software licenses at the start. It pays a manageable monthly fee instead.
- The business spends less to support and maintain necessary applications. The Cloud ERP vendor manages all upgrades and updates.
- The business pays just for the resources it needs.
- The monthly cost of Cloud ERM is fixed. The business can deploy resources to other essential initiatives.
- Business users are able to take advantage of applications available in Cloud ERP faster. Installation of new hardware or software on its user devices or servers isn’t necessary.
- The business can easily adjust the services as its needs change.
- The business knows that its data is backed up—and that a disaster recovery plan is already in place.
- The user can avoid attacks on its servers—the data isn’t stored locally and remains in the cloud.
- Users can access the system from any location. This eases the business’s ability to expand its operations anywhere on earth. There’s no need for the business to implement new software or hardware at any remote location.
Cloud ERP Value Proposition
It’s important to realize that not all vendors’ cloud options are less expensive than on-premises options:
- Software costs are typically lower on the front-end because the business pays to use the application(s).
- The business’ perpetual license may require the business to bear larger upfront costs but lower support costs.
The essential difference between on-premises and cloud options is the time needed to maintain the Cloud ERP/CRM. The cloud option, compared to the on-premises version, shouldn’t require the business to expend any time, effort, or money maintaining it.
In comparison, the on-premises version is purchased by the business at a specific time.
There aren’t significant differences in terms of implementation between the two models. Project management, change management, configuration, and data conversion are similar, though it’s arguable that configuration of the cloud ERP configuration is easier and can be accomplished by most business users.
Business Size and Cloud ERP
Choosing a Cloud ERP system is an important task. Businesses value the potential scalability and cost-reduction potentials of Cloud ERP. According to “The Wall Street Journal,” many medium-sized companies are choosing cloud solutions to meet their specific needs.
It’s important to realize that Cloud ERP offers much more than cost-savings. The Cloud ERP system can help the business to improve collaboration and increase visibility. It also enables smarter and faster decision-making.