The Shift from On-Premises to Cloud ERP: Why It Matters for Your Business

Moving Your Business from the Ground to the Cloud

Savvy business leaders know, to succeed in a digitally hungry landscape, they need innovation. And as a result, they actively seek modernization—new  cloud-based technologies, artificial intelligence, machine learning, and advanced analytics—innovations that drive maximum speed and efficiency in operations to gain that competitive edge.

Modernization isn’t always easy on the front end. But the adage “you have to spend money to make money” bears weight when discussing high-performing, cloud-based ERP systems. If you have yet to pull the trigger, now is the right time to move to the cloud. Chances are that your competitors already have and are reaping the benefits…and gaining that edge. So, what are those benefits?

Cost Minimization

First, the good news: Cloud-based ERP systems operate on a subscription model, Software as a Service (SaaS), eliminating the need to spend more money on expensive hardware, servers and a dedicated IT infrastructure and reducing the costs associated with installation and configuration. You can switch out a six-figure capital expenditure with a more manageable recurring fee.

Once deployed, your Cloud ERP providers handle system updates, patches, backups, and security—reducing your need for in-house IT staff and maintenance contracts. You’ll see more savings when you can cut down on full-time IT head count and ongoing service and support contracts. Overall, reducing capital expense and minimizing IT overhead greatly impact your long-term cost savings. Plus, it allows IT to focus on innovative technological solutions for your entire business as opposed to babysitting your legacy system. And ERP vendors and consultants find affordable ways to suit up a business with a cloud-based system perfectly tailored to their specific needs.

In addition to minimizing IT overhead, your modern ERP system will provide you with real-time data access, automation, and better integration, improving decision-making and reducing manual tasks. Less downtime and faster workflows reduce labor hours and errors, but we’ll drill down on these benefits in a later article.

User Flexibility

These days you must research diligently to find a location that doesn’t have access to Wi-Fi, and that’s probably because you’re looking for some R & R, time away from your modern ERP system. Otherwise, during those other 50 weeks out of the year, you need to access your company’s software on a plane, in Aisle 5 at Target, at the local coffee shop, or in your newly decorated home office. An on-premises system limits your access to your company’s campus…unless you pay handsomely to implement complex remote access solutions. And if you’re willing to invest in that, why not use that same investment to switch to the cloud?

Enhanced Scalability

Are you a growing business? A seasonal one? Or an evolving one? If so, is your current ERP system equipped to scale to your needs? If it’s not, more than likely you will slog through the growth process and end up with more issues than successes. As a rapidly evolving business, gone are the days when you can “pardon your mess” to your client base as you expand. Modern ERPs are equipped with the agility you require to personalize or expand your processes as you build your business. You can add functionalities and integrate with existing or new systems to adapt to your ever-changing business requirements as you introduce new products and services or expand into new markets. ERPs, especially cloud-based ones, can also add or remove users, storage, modules, and computing power as needed without incurring significant capital expenditures, freeing you up to invest in other aspects of your growing business.

Moving to cloud ERP is no longer just a trend; it’s a strategic decision that provides businesses with a competitive edge. With benefits that include lower costs, increased scalability, faster deployment, greater accessibility, and stronger business continuity, cloud ERP systems provide businesses with the tools they need to operate efficiently in an increasingly digital and distributed world. As more companies recognize these advantages, cloud ERP adoption will continue its rapid growth, shaping the future of enterprise operations across industries.