A traditional perception of ERP software is that it can be far too expensive or bulky for small to midsize businesses to commit to. While that may have been true for the ERP software of old, you no longer need swathes of server space and piles of middleware to implement enterprise software. Enter cloud-hosted ERP, sold and managed by vendors taking on much of the burden of hosting, management, security, and upgrades.
Cloud-hosted ERP can offer the power and functionality of an ERP suite at a much lower cost and on a much more flexible schedule for small companies. Because it’s much easier (and quicker) to implement than the traditional on-premise software it can provide your SMB with the kind of competitive benefit growing businesses are always looking for. Here are some of the most significant factors that small businesses should consider when they’re still on the fence about if cloud-hosted ERP is right for them.
Because cloud-hosted ERP software is situated online and on your service provider’s servers, you don’t have to go through the rigors of finding, buying and installing middleware before you even begin actual software implementation. You’ll simply need to sign the licensing contract, go through training on the online platform, and your company will be up and ready to go on a much speedier schedule.
Just as the lack of need for middleware will save you time when it comes to installation, it will also save you money. Your vendor will be responsible for the costs of hosting your company data, and because they host on a much larger scale for multiple businesses, they will be able to operate much more cost efficiently. Those savings get passed onto the cloud-hosted ERP customer. If you do move to cloud-hosted ERP, you’re only committing to that monthly or yearly subscription fee.
Small companies have very particular needs and business processes and they can be liable to change fast. On-premise software can often be too rigid to adjust in the time SMBs need. Usually, your employees will need to wear many hats and be able to get up to speed fast on new tasks and roles, and it can take time (and a dedicated IT team) to adjust software and dashboards as new processes or production lines arise. With cloud-hosted ERP, your platform will be much more flexible and can be managed along with help from your vendor team or implementation partner. Instead of committing your IT team’s valuable time to software management, they can focus on the innovation your business needs.
SMBs don’t just need to be dynamic and adaptive to their market, they also need to be able to grow sustainably. On-site ERP software can hinder a growing business if you have invested a certain amount into server space and middleware to host your enterprise system it’s not often that easy to just add to that server size as your business grows. However, cloud-hosted ERP subscription is usually licensed on a per-seat basis. Do you have some new employees coming in? Just increase your seats for the next month. Cloud-hosted ERP will make your SMB that much more agile and able to adjust to the often unstable climate growing companies must survive in.
As a small or midsize growing business, your needs will be unique and that includes your needs for enterprise software. To stake a claim in crowded markets, a small business needs the tools to be competitive. A cloud-hosted ERP can equip your organization with just those tools.