Growth requires innovation. The faster your company can innovate, the faster it will be able to achieve its objectives. The traditional on-site enterprise resource planning (ERP) systems are frequently too rigid to keep up with changing technology and business processes. As a result, the cloud has emerged as the preferred SaaS ERP software deployment solution for businesses of all sizes. Cloud computing and software-as-a-service (SaaS) are maturing rapidly, and with that maturity comes the ability to handle the most demanding applications. Among these is enterprise resource planning (ERP) software, and cloud-based ERP solutions now provide an extraordinary range of options and benefits to businesses of every size.

The many benefits of cloud-based ERP extend throughout the supply chain and manufacturing process. Many firms have already embraced cloud-based ERP solutions, and the results have been remarkable. New opportunities are emerging for these companies. This article gives you insights into the 10 top benefits of cloud ERP in the business.

1. Migrate off of the outdated system quickly, conveniently, and affordably

The system is challenging to install on-premise ERP applications. It sometimes needs downtime and requires significant time and effort in selecting software, negotiating a price, installing, troubleshooting, and maintaining the system. Cloud-based ERP is distinctive. It does not necessitate significant installation, and the workload can usually be moved quickly, resulting in less downtime. Many cloud ERP software has a simple pricing structure, which is also a massive benefit.

2. Reduces the workload of internal IT staff

After the system is up and running, most of the support is provided directly by your cloud ERP partner. If you require modifications, have questions, or are experiencing problems, there is no need to wait for IT to solve the problem or answer your concerns. Cloud software is beneficial in decreasing the stress on IT while keeping people productive in firms where IT is already overburdened (which comprises the majority of businesses nowadays).

3. Cloud ERP is available everywhere and anytime

Since a cloud-based solution is not dependent on your internal infrastructure, employees can access the system whenever they need it from wherever they are. It means the employees can work from home, work while traveling, and when the system is usually down for maintenance (such as over the weekend or late at night). Even if your entire IT infrastructure is destroyed in a fire or natural disaster, your data and workflows will be preserved and accessible via the cloud.

4. Compatible with other tools

A significant issue in many traditional ERP systems is a lack of compatibility with other systems, particularly when upgrading to new software. Cloud-based ERP software often uses necessary technologies to instantly connect with other technology, allowing you to stream data from other systems into your ERP for a more thorough, accurate, and up-to-date picture of your company data.

5. Providing you access to the latest version

On-premises software updates and upgrades are costly, time-consuming, and tend to fail in executing. Updates usually result in downtime, which most businesses can not afford. An upgrade is expensive- and it also includes downtime, troubleshooting, and all of the challenges that the IT department encounters when installing any new software package. Cloud-based ERP allows you to always have the most up-to-date version without paying extra or slowing down production for an installation.

6. Never have to face a software licensing audit

In recent years, software vendors have become increasingly aggressive in inspecting the businesses that use their products. Even if your company meets licensing standards, going through the auditing process is expensive and time-consuming. There is no in-house software to audit with a cloud platform. You will never get one of those dreadful audit notification letters anymore.

7. Enhanced ERP performance

One challenge with in-house ERP solutions is that they require adequate setup and maintenance to perform efficiently. If all of this is done incorrectly, performance suffers. The vendor of cloud-based solutions is responsible for hosting the solution. Because you know that the system is maintained by experts, you can be confident that your ERP will operate at top efficiency.

8. Provides security to protect data

Data security is a critical concern today, and cloud-based ERP suppliers offer built-in security safeguards to protect your data. Despite the popular misconception that on-premise ERP provides greater security because it is in-house, avoiding cloud services may expose businesses to unnecessary security risks. It happens because they continue to rely on outdated or poorly managed in-house systems with more vulnerabilities than the public cloud equivalent.

You can prevent data loss with the help of security measures like data encryption, secure networks, malware protection, safe key logs, etc. Cloud-based ERP systems also include a comprehensive backup and recovery plan. Backup functionality is typically incorporated and occurs at scheduled times, but on-premise tape backups may not be verified regularly. Not to mention that on-premise ERP systems are often prone to disruptions caused by power outages or hardware or network issues. Cloud ERP companies put a lot of effort into reducing downtime, and they have robust power backups and fail-safes in place.

9. Continued assistance

Cloud-based ERP solutions provide support 24 hours a day, seven days a week. ERP solution providers can solve problems faster than the employees. Additionally, vendors ensure that solutions are up to date. Hackers often target companies that utilize older versions of popular ERP software.

10. Reduction in operational costs

An in-house ERP solution needs the acquisition of software, licenses, and hardware to support it. You will also need to employ somebody to install and maintain it. These will increase the overall IT expenditure, which most SMBs cannot afford right now. However, with a cloud-based ERP, you only pay a set monthly price, so the total cost of implementation is likely to be much lower. Many service providers can also handle the solution on your behalf. It will equal out your operational costs and, if done effectively, will result in a drop in overall expenses.

For a small business, cloud-based ERP allows them to manage enormous amounts of data and streamline complex procedures that would otherwise be isolated. Business organizations who transition to a cloud-based ERP system should expect a 30 to 40% rise in productivity in the coming years, thanks to the improved efficiency of operations provided by such a system. Small businesses will benefit from increased productivity, lower overhead, and smaller, less cumbersome on-site equipment, which will allow for faster and more mobile processes. As a result, these companies will be able to expand more quickly and break into the big league.

Author’s Bio

Deepali Daiya is a communication expert who excels in understanding customer needs. She writes powerful sales scripts and articles with very high conversion rates. Currently, she is associated with Sage Software Solutions, a leading distributor of high-quality ERP and CRM systems to small and mid-sized businesses in India.