Why Cloud Based ERP is better than On-premise ERP Systems

Business Enterprises

Updated on Feb 17, 2020

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ERP is a centralized business management system that allows you to input, interpret and manage data from one-point anywhere anytime. It renders the real-time data with which leaders can access the current status of operations in the business. Be it, production chain, accounting, sales/purchase, invoice generation, etc. – ERP provides an instant snapshot on one single click.

Have ERP or thinking to get ERP, you must be aware of the two modes of ERP deployment. That is, on-premise and on-cloud.

Traditional on-premise ERP deployments require a huge investment including infrastructure, hardware, operating systems, etc. Also, it involves lengthy deployment time which could extend to months and complexity in data migration. This is where cloud technology is winning the hearts of the leaders. Cloud-based ERP has an added advantage of being digitally advanced in terms of deployment.

Take a look at the features of cloud-based ERP to better analyze how it is more advanced than the traditional on-premise ERP system.

ERP as SaaS

When you opt for cloud-based ERP, you purchase ERP as SaaS (software as a service). This doesn’t need any infrastructure for deployment and there’s absolutely no capital involved. All professionals from your organization can access real-time data from anytime anywhere.

Speed and Accuracy

Undoubtedly, the foremost motive of installing ERP in an organization is adding speed and accuracy to mundane manual tasks. Manual entries involve errors that ultimately impact the overall structure of the business. Although, on-premise ERP is equally potent as cloud ERP, still cloud-ERP wins over the traditional deployment. This is because it is easy to install, data migration there takes comparatively less time and all the processes are comparatively faster than expected. Also, the regular updates that take quite a lot of time in traditional ERP are way too faster to incorporate in cloud-based systems.

Enhanced Flexibility

Enhanced mobility features of the ERP system on the go can boost the performance and upgrade the quality of product/services to manifolds. That’s exactly what cloud-based ERP is focused to do. Cloud-based ERP is more flexible than traditional ERP systems. Also, the lesser cost on infrastructure and hardware empowers you to add more services to your customized system specific to your industry.

No Added IT Cost if Hosted on Third-Party Server

Cloud-ERP is hosted on a server. This server could be a third party server which means all your IT related queries can be resolved in no time by the hosting party. That means you don’t have to spend extra on IT maintenance. Although, if you go for personal hosting, you have to look after IT expenses.

If you are new to buying an ERP system for your organization, there’s little or no reason to choose on-premise ERP over cloud-based ERP. Also, if you’re yet to invest in an intelligent enterprise, spend wisely considering all the factors. Although, on-premise ERP is no less in features than the cloud-based systems however the leverages on cloud computing are more.

Also, if you’re already using an ERP, moving to SAP Business ByDesign cloud-based ERP would be the best you could do to your business.

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