For the aforementioned reasons and those listed below, it’s unsurprising that cloud-based ERP implementation saw a 21 percent increase last year, according to a report by Panorama Consulting. Here are some more reasons why companies are racing to cloud-based solutions at a breakneck pace.
More Affordable Up-Front Costs
The initial cost of implementing a cloud ERP software is lower than that of an on-premise software because it doesn’t require any additional server, infrastructure or hardware costs. Though you may pay more over time compared with an on-premise system due to perpetual licensing fees, you can expect what you’ll pay over the course of time and you get more flexibility should your system not meet your needs long-term.
Faster to Implement
Because these kinds of ERPs are web-based and require no lengthy, space-hogging installations, they essentially offer plug-and-play functionality. When you activate your license, you’ll almost always gain immediate access to the platform. It’s important to note that you’ll still need to spend time on training, customization and data transfer once you’ve chosen an ERP, but by and large implementation is speedier on the cloud.
Cloud-based ERPs are hosted on the web and therefore never need to be updated. Think of it like this: your browser-based Facebook page never needs updated, but your phone’s Facebook app occasionally does. On the browser, changes can be implemented in real-time, so you always get the latest version of the software without the need for time-consuming updates.