As companies seek to become more agile, efficient and competitive, cloud ERP software is emerging as a modern integrated management solution. Unlike traditional on-premise systems, these cloud-hosted solutions offer greater flexibility, easier accessibility and reduced infrastructure costs. This article explores what cloud ERP software is, and highlights the key benefits it can offer organizations.
What Is an ERP System?
An Enterprise Resource Planning (ERP) system is software that enables companies to manage and centralize their main business functions, including operations, accounting, sales, purchasing, human resources and so on.
It's a bit like your nervous system. It makes all the connections in your body, sending data to your brain so you can classify, analyze, manage and make decisions.
Just like in your brain, all your company's data is centralized in this ERP software and organized. Your business processes supply the system with reliable data, giving you real-time visibility of your operations. This way, you can make better decisions faster, and adapt to a constantly changing environment. What's more, ERP systems simplify or automate your processes, saving you time and money.
What Are the Main Types of ERP Software Deployment?
When a company chooses an ERP software, the deployment method is a major strategic decision. Depending on its needs, technological infrastructure and internal resources, an organization may opt for different approaches. Here's an overview of the two main types of ERP deployment: cloud-based and on-premise solutions.
Cloud ERP Software
A cloud ERP system is ERP software that runs in the cloud. With this type of deployment, you pay a monthly fee to use the system. In return, the vendor takes care of software maintenance, updates and security. This business model is known as Software as a Service (SaaS).
On-Premise ERP Software
On-premise ERP software is software hosted on the company's own site. This more traditional type of deployment requires the purchase of a license to install the software locally, which can represent a considerable initial investment for the company, which must also take responsibility for system maintenance and security.
What’s the Difference Between Cloud Erp Software and On-Premise ERP Software?
Companies usually choose an on-premise solution for reasons of compliance or system customization. Companies that opt for this solution anticipate a return on investment from customizing their ERP software.
Generally speaking, it's the larger companies with IT teams that can maintain, develop, update and secure the ERP software while managing their department's other day-to-day priorities.
However, with cloud ERP, the supplier takes care of all these activities. This means that your IT teams can concentrate on the projects that add the most value to your business.
What Are the Advantages of Cloud ERP Software?
Lower Upfront Costs
Developers of cloud ERP software generally offer their application in exchange for a SaaS subscription, with monthly or annual pricing, which includes maintenance and updates.
In contrast, for on-premise ERP software, a significant initial investment is required to use the software, as well as high-recurring maintenance and upgrade costs. In addition, the company must invest in hardware and time to manage the company's busy IT infrastructure.
Scalability
Opting for a cloud-based solution also means supporting your company's future growth. With regular updates that add new features to your software, and scalable, state-of-the-art hosting, you benefit from a system that will evolve with your operations and easily adapt to your growth.
Maintenance Included
All software will need maintenance and updates to keep pace with the evolution of your business, its market and technological innovations. This software development is taken care of by the supplier and included in your monthly fee.
Anytime, Remote Access
Whether you're in the office, at home or on the move, cloud ERP software gives you the flexibility to access the application without compromise. In addition, leading cloud providers locate their data centers in a variety of regions to secure your backups and give you peace of mind.
Increased Security
Hosting ERP software on a cloud service offers a much higher level of security than that provided by a local server. Unlike an in-house infrastructure, which is often limited by budget or human resources, large-scale data hosting services offer a high level of protection thanks to their data centers, which are constantly monitored by cybersecurity experts. Data is automatically encrypted, backed up regularly and protected against threats by advanced detection tools. In the event of a problem, interventions are rapid and effective, greatly reducing the risk to your company's sensitive data.
In Brief
Cloud ERP software represents a significant step forward for companies wishing to modernize their operational management while gaining in agility. Thanks to its many advantages, it is a solution particularly well suited to organizations undergoing growth or digital transformation. To remain competitive in a constantly evolving business environment, companies are well advised to seriously consider this option when choosing their next ERP system.
.svg)
