Cloud ERP refers to an Enterprise Resource Planning software delivered as a software-as-a-service model that can be easily accessed via a web browser.
In the past, companies purchase ERP software to be installed locally in their company’s own hardware and servers. It is the company’s responsibility to customise, maintain, and manage the software and all the hardware, servers, and additional software required. Projects like this are usually costly in upfront costs and maintenance, and most likely will require full-time IT staff to manage the solution.
Cloud ERP Makes ERP Ownership Easier
The rise of cloud-based ERP software gives SMB and SME owners access to ERP solutions, unlocking new processes and tools that were not readily available before this. Cloud-based ERP software allows businesses to access the ERP software through any web browser, on any device anywhere. As a SaaS solution, there is no need to maintain your own hardware and servers. There is also no on-going maintenance cost and additional workforce required to maintain the ERP solution in-house.
Key Benefits of Cloud ERP
- Lower total cost of ownership
- Ease of maintenance
- Software updates
1. Lower total cost of ownership
Cloud ERP has a lower total cost of ownership compared to on-premise ERP. You are licensed to access the software and can save on the hefty upfront cost, which includes the ERP software licenses, hardware, server, and additional software required. All you would need is a reliable internet connection to access the cloud-based ERP software. There is also no need to train and maintain an IT team that is usually associated with on-premise ERP software.
2. Ease of maintenance
Businesses do not require any specialized expertise to use a cloud-based ERP solution. Compared with an on-premise ERP solution, there is a need for the IT team to manage the infrastructure, hardware, and servers. The cloud ERP solution gives you access to the vendor’s team that will manage your solution with all other users – so you access the best team at the lowest cost. The vendor that you work with will also be able to assist you in monitoring your data usage and provide you with advice at an affordable cost compared to maintaining your own team.
3. Software updates
You no longer need to manage your software updates with cloud ERP software. Any updates and bug fixes will be done automatically by the vendor without affecting your business. You need not stop all your business processes for this update to take place. There is also no longer a need to re-implement your ERP software. The benefits of cloud ERP is that the software updates are done from the vendor’s server itself without the need to disrupt your use of the software.
Businesses are starting to turn to cloud-based ERP software because of the various benefits and cost savings. MicroChannel assists businesses of all sizes to evaluate their requirements and find the best fit for their business.
Below are key factors to consider in evaluating Cloud ERP
- Implementation options
- Functionalities required
- Scalability options
- User interface
Contact us to start evaluating a cloud-based ERP for your business.
SAP Business One is an affordable Enterprise Resource Planning (ERP) software designed for small to midsize businesses. As a business management solution, SAP B1 streamlines business processes, provides real-time information, and help boost overall business performance. The solution covers finance, sales, customer relationship, purchasing, procurement, inventory and manufacturing in one centralised system, enabling accurate and precise information retrieval that assist in reporting, forecasting and analysis.