As thousands of organizations move to the cloud, one of the biggest applications in business today—Enterprise Resource Planning—is becoming a cloud reality. Still, as you make the decision to move your ERP to the cloud, your business needs to understand the key terms and key players in the Cloud ERP market.
Cloud vs. On-Premises ERP
Buyers need to realize not all ERP systems labeled “cloud” are the same. There is a major difference between ‘true’ cloud ERP and one from traditional vendors with added cloud or hosted deployment options.
- Cloud-Only Providers: These are the “born-in-the-cloud” ERP vendors that do not have an on-premises offering and include companies such as NetSuite, Plex, Workday, Rootstock, Kenandy, FinancialForce, Intacct, and several others. Because cloud-only vendors have a single deployment option, they each can focus their entire business—from product development to sales to implementation and ongoing support—on the cloud. As a result, they make fewer compromises and tend to deliver the maximum benefits of cloud solutions in speed, agility, and scalability.
- Traditional ERP Vendors: These larger, more established providers have more complex business models to support their on-premises customers as well as their hosted or cloud customers. Traditional ERP Vendors have developed their solutions over many years or even decades, and tend to have more complete business models than those of cloud-only providers.
Now that you know the different offerings, why should you move something as broad as your ERP software to the cloud?
Key Benefits of Cloud ERP
You may be reluctant to consider something as large as ERP moving to the cloud, but even with these concerns, the benefits (and debunked myths) can outweigh your reservations. Although there are many more, here are five key benefits of cloud ERP.
- Replace CapEx with OpEx. Capital expenditure can be tight, especially for small and midsized businesses. Cloud ERP is subscription based and requires very little initial cost.
- Scalability. Cloud ERP allows you to scale your solution depending on needs without having to purchase new licenses or new hardware.
- Reduce IT workload. The cloud ERP provider will handle maintenance, updates and troubleshooting. This provides your IT department time for more important things.
- Increased security. Cloud providers actually have the expertise and infrastructure to provide the security that would be impractical and too expensive for you. Cloud data is stored in redundant data centers with security measures beyond that which you can provide.
- Implement and develop faster. New applications often require testing, server provisioning and other steps before your on-premises servers are ready. With the cloud, you can add many applications and services with the click of a button. View 4 More Benefits of the Cloud here.
Preparing Your Organization for the Future
If you are ready to make the move, you are in the right place. From CIO Advisory Services to many of our cloud products, prepare your organization for the future by looking at the following information: