Simply Dynamics

12th September 2016

10 reasons your ERP system should be in the cloud

10 reasons your ERP system should be in the cloud

why your ERP system should be in the cloudGartner says the “worldwide public cloud services market is forecast to reach $204 billion in 2016. The market for public cloud services is continuing to demonstrate high rates of growth across all markets and Gartner expects this to continue through 2017.”

As we know, the applications that can be run in the cloud are growing daily. However just because they can, does it mean you should? In terms of ERP systems, we believe it does. And here are 10 reasons why your ERP system should be in the cloud (aka SaaS).

  1. One of the biggest reasons is the obvious reduction on overall capital and hardware and software revenue costs. Not having to purchase and manage complex hardware on a regular basis is a significant cost saving. This brings ERP systems within the reach of even small companies.
  2. Subscription-based pricing model - you know how much it costs each month. This makes cash flow management and planning much easier.
  3. Ongoing staffing and administration costs are significantly reduced as hardware and maintenance needs decrease – not to mention the hassle of installing and managing complex software systems.
  4. You can add and remove new users in just a few minutes.
  5. Your employees have access from any internet-enabled device meaning they can access it on the train into work, or even from their home computers and mobiles.
  6. Reduced hardware/software maintenance requirements frees up IT department time for other projects.
  7. Despite what you may have heard previously, your data is more secure in the cloud and this security is managed by your ERP cloud vendor, rather than your own IT department. In fact Gartner says that “Multi-tenant clouds are not only highly resistant to attack, but are also a more secure starting point than most traditional in-house implementations."
  8. As cloud services tend to be quicker to deploy, your system is up and running in less time than on-premises meaning that you are getting a faster return on investment.
  9. Customisations will continue to work with upgrades
  10. Re-implementing cloud ERP is simpler than an on-premises upgrade in many cases. Many companies are now coming to the end of support having left their perfectly-working ERP systems alone over the years. So instead of an expensive and time-consuming on-premises upgrade, they’re moving to the cloud with all the support and security that offers.

You can even use a combination of different models. Multi-tenant (single instance of software running on a server and serving multiple tenants (a tenant being a group of users)), or single tenant (providing more administrative control). Or even a two tier approach with some on-premises and some cloud-based. You can choose the model that works best for you.

Over the last few years cloud ERP systems have grown to more than 30% of all ERP systems. This is going to continue to grow as organisations come to understand the benefits of why their ERP should be in the cloud.

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