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By: Preeju

Top benefits of using a Cloud-based ERP System

Functional

Enterprise Resource Planning (ERP) is a management software with a bundle of business applications helping the business organizations automate their data collection, storage management, accounting, inventory, marketing, service delivery, etc. An integrated ERP gives real-time information access to business processes, resources and other organizational commitments. An ERP successfully facilitates the business workflows via integrating all departments under one single platform, improving the overall communication. 

Unlike the traditional ERP software application, a Cloud-based ERP system is usually delivered through an Internet connection, later accessed via browser by the end user. The cloud ERP doesn’t demand any installation on computers and is accessed and offered on a per-user, per month, and flat-rate fee.
Increased and Efficient Performance

An In-house ERP/Traditional ERP solution often demands large computer power in order to function properly. Small businesses often get into trouble here, as they are forced to invest a large sum in keeping separate servers to run their ERP software. In addition, the challenge of poor execution leads to additional miseries like performance drop.  

A Cloud-based ERP solution, scale the business painlessly. Where with the on-premise system, businesses purchase extra servers and equipment in improving the work efficiency, a cloud ERP only demands a steady Internet connection, which every small and medium business possess. In addition, in Cloud base ERP all resources and infrastructure required to host the ERP solution are taken care of by the vendor, businesses can simply add additional users by paying extra for their subscription.
 
Reducing the operational cost

An in-house ERP software solution demands hardware support, techie staff for ERP installation and future maintenance. To a majority of small and medium businesses, they lack technical staffs and this eventually leads to hiring experts from outside. In addition, the business also invests an amount in purchasing the ERP solution, related license fees and other miscellaneous charges, turning a huge IT investment.

Conversely, a cloud-based ERP comes with a flat-rate monthly fee reducing the total implementation cost to a great extent. To more surprise, the providers manage the ERP solution, right from installation to maintenance, turning down the operational and implementation expense.  
 
Enhanced information flow
 
There is no doubt that an ERP streamlines the internal business communication. A cloud-based ERP solution is accessible via the Internet, enabling the access to your information from any geographical location. This, in turn, increases the overall business operations and improves transparency within the business industry. A great degree of flexibility is offered via enabling the access to information easier from far outside the office. 

Ever meeting Support 
 
The cloud-based ERP solution often offers 24/7 support. The ERP service provider works to keep all solutions updated like security fixes and pushing of new features at the earliest. This, in turn, helps in increasing the overall security and simultaneously making the employees more productive.


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Comments

Anna Davis

That's a good point that an in-house system requires hardware that you have to install and maintain. I have been thinking about getting an ERP solution for my accounting business this month. I will definitely consider cloud-based options since they are a lot easier and more affordable to have over time.

05/10/2020

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10:13AM



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