Cloud ERP rules!

No matter how you look at it, cost is a primary consideration when it comes to selecting an ERP system, and cloud offers the best solution. On-premise ERP systems require an initial investment and many small and medium businesses -and especially those at their early stages of operation- cannot even consider investing such a capital.

On the other hand, cloud-based solutions are usually offered against a monthly fee, which allows businesses to allocate the required funds from their budget. And since many cloud-based ERP applications can be scaled up or down, depending on the current needs, businesses only pay for the licenses they need at that particular moment, thus reducing any loss of revenue.

Another difference between on-premise and cloud-based ERP solutions, is that of customization expenses. In order to customize an on-premise ERP system, you would have to pay additional cost for each individual customization, as well as for updates and upgrades, as time passes. On the contrary, cloud-based ERP solutions are easily customized and such customizations are upgraded along with the solution, having minimum impact on the actual operation of the business.

Until recently, one of the most significant obstacles in adopting a cloud-based ERP solution was the fear that security in the cloud would not be as reliable as that of an on-premise system. Now, this is no longer a cause for concern, since cloud-based applications have matured, and so has the provision of strong security for such applications. After all, today’s vendors can protect their customers’ data that are critical for their survival. On the contrary, on-premise systems do not offer the same effectiveness in terms of security, since IT departments and the personnel in charge of security, are often busy with other tasks that are considered more crucial to the business network.

Therefore, it can be easily concluded that the cloud is no longer a technology of the future, but a technology that is present in the daily operations of businesses. It is evident that cloud-based systems offer bigger advantages than on-premise solutions on all levels. Those who are not still using a cloud-based solution, should soon make the comparison between the cost and the effectiveness of on-premise systems and the savings that a migration to the cloud has to offer. Cloud-based ERP technology is the clear winner in all cases.