It's virtually a condition to start using ERP software after your business grows beyond a certain point. ERP software manages back-end processes, automatically merges information from every department, and makes all this information easily accessible to you and your employees.

Choosing an ERP system can seem like a daunting task for a young start-up or for a veteran corporation looking to change outdated software. When you start the search, you're bound to see the battle between traditional and cloud-based ERP. 

If you search deeper, you'll learn that the market is starting to lean more toward cloud-based ERP. And it's learning faster every year, according to a Gartner study, with more detail added by Forbes.
In years past, ERP solutions may have been up for debate. But today, here's why cloud-based ERP is the smart choice.

Cost

One clear advantage of cloud-based ERP is the cost. Cloud systems have little to no upfront fee but are paid by monthly subscription. Traditional ERP systems, however, have a huge upfront cost.
If you're a young business, the last thing you want to do is spend a large amount of capital right at the opening when you need it most. A subscription model allows you to invest money now in growing your business to a point where you can easily continue paying the subscription fee in years to come.

It's true, eventually, the cost of cloud ERP's subscription will surpass the initial cost of traditional ERP systems. However, there are other costs to consider. Cloud-based ERP systems are updated and maintained on the host's side. You never need to invest your employees' hours in updating a cloud-based system.

However, traditional, on-site ERP systems need to be updated and maintained often. This takes hours away from your employees, which directly translates to money lost. Considering the lack of a large upfront fee and the saving on employee time down the road, the cost is a huge advantage to cloud ERP systems.

Convenience

Cost may be the first advantage of cloud-based ERP you notice, but convenience is the one you'll grow to love.

On-site ERP systems are only available at the work site, and even then they're only available on the systems they're installed. Cloud ERP can be installed on any system in minutes, allowing employees to access the software from anywhere.

Have you ever driven home from the office only to get a call asking for updated sales numbers? With cloud-based ERP, employees don't have to drive all the way back to the office to check; they can just open their home computer or check an app on their Smartphone.

The convenience of cloud-based ERP increases the quality of life in your office. This makes for a happier team, but also a more creative one. The workplace is ever evolving in the 21st century, and cloud-based ERP offers the flexibility to evolve with it.

Security

Security is the main concern many business owners have with cloud-based ERP. It's an understandable concern it can feel scary to upload all your sensitive material to another company's server.

But technology has grown to a point where your data is safe in the hands of cloud-based ERP vendors. After all, wouldn't the stock of these cloud companies collapse if they had a security breach? It's the whole focus of their commerce to stay on top of security.

In some ways, cloud-based ERP systems are even more secure than on-site systems. When you use an on-site ERP system, your data is defenseless to data loss from employee error. Companies lose millions of dollars a year through accidental data loss.

Cloud ERP fixes this problem instantly. Not only do cloud-based ERP systems track who access what files and when, but these systems also make it easy to backup data in order to recover it, which can save you a headache and a fortune down the road