Enterprise resource planning (ERP) solutions let you handle many of your business’s processes in one place. You can manage your inventory, customers, and orderswith one simple, intuitive platform. If you’ve decided it’s time for your business to adopt an ERP solution, you may wonder if you should choose an on-premise ERP or a cloud ERP. Here are three advantages of cloud ERP solutions.
1. Cloud ERP Solutions Require a Lower Upfront Investment
For your business to remain successful, you need to carefully manage your cash flow. Large, upfront expenses can strain your budget and leave you with a dangerous deficit of cash. If you tie up too much money in one investment, you might not have enough left over to pay your business’s monthly expenses.
You typically need to pay for a one-time perpetual license to use an on-premise ERP solution. You’ll also need to install servers to run the solution. This means you’ll have to spend a lot of money upfront, before you can even start using the solution.
Cloud ERP solutions are run on a subscription model. After paying a one-time fee to get started, your only costs are predictable monthly subscription fees. Since the costs are spread out over time, cloud solutions aren’t likely to stretch your business’s finances.
2. Cloud ERP Solutions Save You from Data Security Woes
Are you worried about data loss in your business? This is a valid concern, since it costs Canadian companies billions of dollars every year. Your employees can’t do their jobs properly when data disappears, and productivity suffers. Valuable information about your customers, orders, or accounts could be gone forever, which can have a devastating impact on your business.
When companies use on-premise ERP solutions, they’re responsible for their own data. If servers aren’t maintained regularly, or if the hardware suffers physical damage, information could be lost. As a result, you may need to bring on more IT security staff to guard your data.
With cloud ERP solutions, data security is the vendor’s worry, not yours. Since your data is stored on the vendor’s servers, they’re responsible for protecting it. Before you sign up with an ERP provider, ask for details about their security procedures to gain peace of mind, but remember that ERP companies can’t stay in business for long if they don’t protect customers’ data.
3. Cloud ERP Solutions Can Be Integrated with Other Solutions
Keeping all of your business’s information in one place makes your job easier. After all, it’s why you’re planning to implement an ERP solution. When you can easily access data from different areas of your business, you can get the facts you need to make informed business decisions. Your ERP solution will help you manage your business’s back end functions in once place, but you may be using cloud-based solutions for some of your business’s front end functions.
Integrating on-premise ERP platforms with your existing solutions can be a challenge. These systems are difficult to enhance, and when you try to add more features, they may not work very well. This can be very frustrating when all you want is to get good information about the different aspects of your business.
Cloud ERP solutions can be easily integrated with your business’s other cloud solutions. For example, if you’re already using a retail point-of-sale system, or an ecommerce platform, you can link them to your new cloud ERP. This integration lets data flow freely between your systems, ensuring you get the support you need.