ERP is complex software that sits at the center of a business. It also is a mature product. This makes the rise of cloud-based ERP something more than your typical software sector moving to the cloud. ERP in the cloud is not as simple as project management software and email, and the stakes are higher for businesses.
With that in mind, here are six signs that cloud ERP might be right for your business.
ERP implementation is notoriously complex. This complexity is greatly reduced with cloud ERP, however; it literally can take minutes to deploy in the cloud. That is in contrast with hours to install and days or months to configure on-premise ERP systems typically.
On-premise, ERP is not usually a small software buy. Nor do such systems run themselves; there is constant hardware and software maintenance. The cloud relieves all of these challenges, offering a low-cost entrance to ERP and removing much of the administrative burden. This makes cloud ERP a good fit for smaller firms.
Is your software the latest stable release, with all security updates applied and all hardware equally supported? If your ERP system lags behind the latest release, this could be a sign that you should consider cloud ERP.
On-premise ERP systems are wide-ranging, built on legacy systems in many cases, and not exactly what you would call bleeding edge from a design or connectivity standpoint. For some businesses this is acceptable, but startups and firms that need tight integration among various systems and web platforms should look strongly at a cloud ERP solution.
Sometimes IT systems are tools, and sometimes they are used for competitive advantage through unique processes or customizations. Since on-premise ERP delivers far more latitude for product customization, businesses should ask themselves if their ERP system is needed for competitive advantage. If not, go cloud ERP.
Finally, a clear sign you need cloud ERP is when simplicity is an important factor. While cloud ERP does not offer the software maturity or quite the range of customization that businesses can get through on-premise ERP, it is wickedly simpler like just about every software offering in the cloud. So if your business needs simplicity or ERP is a scary topic, cloud ERP is the right choice.