As a core business function, many companies have been hesitant to trust cloud environments with their enterprise resource planning (ERP) software in the past. However, the COVID-19 pandemic has made it clear how crucial cloud-based software is to keep business operations running smoothly. Now, employees need to be able to access business-critical applications no matter where they are. So, will cloud ERP software increase your agility? In this article, we’ll show you the ways it can help.
To find your own cloud-based ERP software, check out our Product Selection Tool. Answer a few questions, and you’ll get a short, unbiased list of ERP software tailored to your company’s needs.
Table of contents
- Analyze data in real-time
- Lower your operating costs
- Improve scalability
- Access 24/7 support
- Will cloud ERP software increase your company’s agility?
Analyze data in real-time
ERP software is a treasure trove of organizational data, but that information does you no good if it’s not up to date. Because cloud-based ERP software is always connected to the internet, it automatically updates to give you a real-time look at your company’s data. ERP systems, like Netsuite from Oracle, also integrate with the other software you use to provide a more comprehensive view of your organization.
This real-time data is critical to improve your decision-making process and ensure that you’re basing decisions on the most recent and relevant data. For example, say your supply chain management module notifies you that one of your suppliers just ran out of an important product. Because you learn about this shortage as it’s happening, you can quickly pivot and source the commodity from another supplier. With an on-premises ERP, you may not know about issues like this until you’re scrambling to fix them.
Lower your operating costs
With cloud ERP systems, you don’t have to host the software on your own server or worry about its maintenance. Large software systems, like an ERP, generally need regular updates to both software and hardware to continue running smoothly. With a cloud-based ERP, like Deltek, the vendor handles all of those updates, meaning you don’t have to worry about the system falling out of date.
In addition to maintenance costs, cloud-based ERP systems also tend to have lower upfront costs than on-premise systems. For one, you don’t have to buy servers to house your ERP system. Also, upgrading your ERP as your company grows is much easier because cloud ERPs offer a pay-as-you-go model, allowing you to upgrade your software as the need arises.
With on-premises ERP systems, you have to plan ahead when you’re purchasing hardware and software because upgrading is difficult later on. This means you’re generally paying for much more server space and licensing requirements than you currently need in the hopes that your business will one day grow into it. Cloud-native ERP software doesn’t work like that.
With cloud ERP software, like Intacct, you only pay for what you need, including the number of licenses and modules. As your company and needs grow, you can easily upgrade your software to account for new employees or incorporate new departments by adding modules to your system. You might decide to add an accounting module as your finance team comes in-house or an HR module to make hiring new employees that much easier.
Also read: MRP vs. ERP: Differences and Tools
Access 24/7 support
Because cloud ERP software is managed by a third-party vendor, you generally get access to 24/7 technical support. Vendors know that their customers don’t always conform to a 9-5 schedule, so they make sure support is available when you are.
If you were hosting your ERP in-house, you’d only be able to get technical support when your IT team was available. Unfortunately, problems don’t always wait until your IT team is around, so you might end up with downtime or major errors. Cloud-based ERP software, like SAP, makes it easier to get the support you need quickly and frees up your IT team, so they can work on other projects.
Will cloud ERP software increase your company’s agility?
Even if your team will come back to the office once it’s safe to do so, you should strongly consider cloud-based ERP software, especially if you already use an on-premises version. These systems can streamline workflows across your entire organization and give you the flexibility you need to make decisions quickly and efficiently. Cloud ERP systems generally cost less than traditional, on-premises ERPs and can free up your IT staff to work on projects that can take your business further.
To find the right cloud-based ERP for your organization, use our Product Selection Tool. After describing the needs of your company, you’ll get a short, unbiased list of software that can meet those needs.