Could You Be Getting More From Cloud ERP?

Posted in Cloud ERP on November 21, 2012

cloud-erp-manufacturers | Photo Courtesy of landschaft

More and more manufacturers are considering the cloud when it comes to their ERP system.

Inventory management in the cloud offers businesses a secure, safe and even more dependable service than on-premises. This article offers great context to the cloud vs. on-premises debate.

According to an article on Panorama Consulting Solutions’ website, here are the answers to five questions many manufacturers who are considering a cloud ERP system may be asking:

  1. Isn’t a subscription fee more expensive in the long-run versus a one-time implementation fee? Cost is complex. You can’t just compare the two numbers. On-premises software isn’t just a one-time fee — there’s cost of maintenance, expansion and managing two systems. But maintenance is included in most cloud subscription costs.The various ERP software features (like mobility, backups, redundancies, security) that are included in the cloud will cost more in an on-premises solution. Then there’s the other “ghosts in the closet” obstacles a software provider offers, like the real-time management limitations an on-premises solution puts on a business. Companies need to make apples-to-apples comparisons, which can be quite difficult.
  2. Is it dangerous to store proprietary business information outside of our office? Securing information is part of their business for cloud ERP vendors, and your information is likely to stay protected. It’s also much cheaper for an accredited vendor to handle information security rather than managing it yourself.
  3. What if the vendor’s servers go down? Downtime is unavoidable, no matter if your cloud services are on- or off-premise. Remember this is the livelihood of ERP vendors, though, so they will ensure software runs as glitch-free as possible.
  4. Can cloud ERP handle access from more than one location? Cloud ERP software is made to be compatible through multiple locations. Browser location is irrelevant. The 24/7 world of mobile technology operates seamlessly on cloud ERP technology.
  5. Will my employees be required to undertake a big training? “Employees are more likely to feel at home using modern, cloud-based ERP software than on-premises software,” according to the article. This is because cloud ERP is modeled on modern applications like Google and Facebook.

Source: Panorama Consulting, October 2012

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