Both cloud ERP Accounting Software and on-premise ERP have advantages. The best option for you will be determined by the structure and business plan of your company.
Although this article focuses on the advantages of cloud ERP, it is not in any way superior to on-premise or hybrid cloud environments. Any technology’s benefits can be determined by how well you execute your project before, during, and after implementation.
The following is a non-technical viewpoint on why certain businesses want to adopt cloud ERP:
1. Better Business Intelligence
Cloud technology enables businesses to access data from anywhere without the need for complicated technological configuration or a large IT workforce. The number of companies using cloud-based business intelligence (BI) has doubled in the last two years.
2. Faster Implementation
On-premise ERP systems take longer to incorporate than cloud ERP systems. In as little as 24 hours, the technological environment for cloud technologies can be set up.
This frees up time for companies to concentrate on the corporate side of change. If you’re using cloud or on-premise ERP, change management and business process management take the same amount of time and effort.
3. Ability to Focus on Your Core Competencies
Many companies don’t have enough IT workers or can’t afford the same services and infrastructure as cloud service providers. If an organization’s IT skills can be adequate, it isn’t inherently its core competency.
Organizations can outsource their IT functions and concentrate on their core business thanks to cloud technologyRetailers, for example, choose to put more emphasis on the consumer experience than on IT maintenance.
4. Cost Savings
Cloud technology has a lower initial cost than on-premise technology. Although subscription costs accumulate over time, many CFOs are more concerned with reducing capital expenses than operating costs. To cut long-term costs, these CFOs can choose a multi-tenant cloud. For smaller businesses, cloud ERP can be less costly in the long run than on-premise ERP because the fixed infrastructure costs of on-premise ERP cannot be spread over enough volume to justify the expense.
5. End User Buy In
Employees will be quicker to adopt cloud technology because it is more modern and simpler to use than on-premise software. This does not negate the need for end-user training and a communications strategy. It simply means they can face less opposition. Some business cultures are more open to using cloud ERP than others.
6. Strong Data Security
Many businesses are turning to cloud ERP to prevent security breaches because cloud providers typically have very stable hosting environments. Some CIOs are also concerned about cloud protection, but they are unaware of how cautious cloud ERP vendors can be when it comes to security due to the high stakes. Cloud vendors stand to lose a lot because they have a lot of customers and are easy targets for hackers. This can seem to be a drawback, but it forces vendors to establish sophisticated security in many situations.
Cloud ERP Best Practices
Although there are several compelling reasons to adopt cloud ERP, every technology project comes with a high level of risk. Panorama’s ERP consultants will help you understand your market plan and digital strategy before moving into a cloud deployment. We’ll make sure the deployment model you chose is compatible with these goals.