5 Profits To Cloud Based ERP Solutions

PostedOn: 2017-03-16 14:47:26

There was a time when businesses avoided cloud-based solutions at all costs. 

Over time, however, people began to realize that moving data and applications to a reputable cloud vendor wouldn’t trigger a series of catastrophic events that they once feared. Once early adopters reported how satisfied they were with their decision to utilize the cloud, other businesses began to take notice and it became a serious option for most technical solutions. Nowadays, statistics show that of the 87 percent of small to medium sized businesses who have adopted cloud-based services, 43 percent wish that they had made the move sooner.

One of the most common areas where businesses find themselves exploring cloud-based vendors is with enterprise grade software such as their ERP solution. Since ERP software is usually offered to customers as a package of applications and modules, while extremely powerful, its complexity can be intimidating.

For some companies, reviewing Software as a Service (SaaS) offerings compared to on-premise ERP solutions the benefits of the cloud-based SaaS make this option extremely attractive.

Less required resources

The main draw to cloud-based ERP solutions is that you don’t have any additional capital outlay for networking hardware. Since you are buying the subscription from your SaaS provider, you don’t have to buy new servers to house the application or databases, nor do you have to hire people to install, troubleshoot and manage hardware and software connected with your ERP solution. That is all covered in your licensing costs.

Enhanced security

At one point in time, people thought that housing sensitive data in the cloud went against best practices when it came to security. Then they started to see how ERP cloud vendors could actually provide a more secure environment in most cases. They hire the right people to manage the tools and appliances that keep data safe. They are responsible for testing for vulnerabilities and patching systems with exposed weaknesses.

While you still have to take a hand in making sure that your data is safe, reputable cloud ERP vendors act as your partner when it comes to security measures.


One of the benefits that early cloud adopters quickly realized is that with a cloud subscription, it is easy to scale services to meet your needs. If your business experiences tremendous growth, you can easily increase your license size. The reverse is true as well; if your company is seasonal or has to downsize then you have the option of dipping your license size to meet your current needs.

Greater availability

The very nature of SaaS offerings is that you can access the application from anywhere. This means that if you can provide access to your staff if you have a remote office, a remote workforce or just someone who has to use the ERP system while at home or while away at a conference.


Since your ERP vendor maintains ownership of the software and hardware, they often provide round-the-clock hold up for their customers. Unlike on-premise hosting, which sometimes requires customers to purchase support packages, cloud vendors usually offer this as part of their service; and that includes software upgrades.

Choosing the right ERP solution for your business takes some serious thought. For some, on-site solutions are the only way to go. If they have the money for the resources that ERP software requires, this decision makes sense in many cases. However, for those companies who don’t want to spend money on this capital and don’t want to have to manage the application, opting for a cloud-based vendor makes perfect sense.