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What is Cloud ERP System and is it right for you?

What is cloud erp system

What is Cloud ERP System?

When it comes to ERP, choice of deployment matters a lot to organizations. They can either opt for On-Premise ERP or Cloud based ERP application on their preferences.

Cloud based ERP Software is hosted on the internet and is available as a sort of Software-as-a-Service (SaaS).  It has gained much more popularity in the recent years owing to its short implementation cycle and less upfront/capital investment.

While Cloud ERP System could seem like a very appealing choice at first, it is best to weigh its pros and cons before embarking on the journey to its implementation.

Let’s break it down into small points for a better understanding.

  • Cloud ERP softwares require significantly less investment, in the beginning, making it a very attractive option for those who do not have a very big investment, to begin with.
  • Cloud ERP is deployed by your cloud ERP vendor, and you generally pay an agreed monthly charge/user. It is more of an OPEX as opposed to a CAPEX.
  • Quite understandably, it is accessed over the internet.
  • Unlike On-premise ERP, it does not require hardware investments.
  • Data security is one of the major concerns amongst users when it comes to Cloud based ERP software.
  • Cloud ERP do not allow customizations.
  • Cloud based ERP Software have a shorter implementation cycle as compared to an On-Premise ERP. This is primarily because Cloud ERPs are implemented as standard with no customizations.

Is Cloud ERP System for you?

After everything said and done, it is your preference that should drive your choice while selecting an ERP System. However, try and focus on the questions below to analyze your ERP needs.

Do you want heavy customization?

If yes, then, do not think twice before dumping the idea of a Cloud based ERP software. It will be anything but flexible to your needs.

Are you short on capital expenditure?

Your budget will play a very important role in deciding your ERP System based on the cloud. If you are low on capital, then a Cloud based ERP software could be an answer to some of your business-related problems.

Are you apprehensive about data security?

In today’s world, data is highly sensitive and companies tend to protect it with utmost care. Enterprises are very apprehensive about their data security and privacy when it comes to Cloud ERP System. Though the Cloud service providers provide the best of security, the thought of your data lying with the cloud providers may make you paranoid about your data security.

How many users do you have?

If you have a small number of users, then commercially a Cloud ERP Solution will make sense rather than invest in IT infrastructure. If you have a number of users, then the cumulative spend in Cloud in just over 2 years will outrun your cumulative investments in the On-Premise model. Hence a comparison of the Total Cost of Ownership (TCO) must be done for a period of 5 years to give you a better picture of the costs involved.

We hope this article will help address your dilemma — What is Cloud ERP System and will it be useful for your enterprise. Our dedicated team of ERP experts is always available to answer your queries about ERP Systems. Our ERP Software – ebizframe has helped 1,100+ clients to transform the way they do business. To get in touch with us, please write to marketing@ebizframe.com

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