More and more modern enterprise resource planning (ERP) systems adopt cloud architecture. This is not just a mere trend, as cloud ERP software opens up incredible opportunities for businesses. Although on-premise systems also have their advantages and are therefore still popular among companies, many organizations choose to migrate to cloud solutions. In this article, you will learn about the reasons for making such a decision.
Cloud ERP systems do not require any specific preparations for your hardware. Most software is accessed through a browser, which means you do not need to install any programs on your computer. This speeds up the system implementation process, where you only have to configure the features.
At the same time, cloud systems can be easily updated on all devices that use the ERP software.
Although some on-premise ERP systems support integration with other applications, it is much easier to connect cloud-based software with other programs. That is why you can find so many applications available for integration for cloud versions of leading ERP systems, such as Microsoft Dynamics 365 Finance and Supply Chain Management. The extensive list of options includes applications developed by Microsoft as well as those offered by third-party vendors.
Cloud ERP systems can be used on both computers and mobile devices, making it much easier for employees to work. This is especially important for anyone working outside the office, whether they work on the production floor, in the warehouse, or out in the field.
Regardless of which device is used for work with your ERP system, you will get access to the same version of the company database and enjoy real-time record updates.
Cloud ERP systems can effectively back up your data, which is not possible with on-premises software. In addition, top software offers the most advanced cyber protection, while companies that rely on on-premises products have to worry about the security of their systems themselves.
The ease of using cloud ERP solutions can significantly reduce the cost of system implementation, maintenance, upgrades, and integration with other applications. At the same time, flawless data transfer increases a company’s overall productivity and efficiency and lowers its costs even more.
As you have just learned, the features provided by the cloud architecture of advanced ERP software are often not available in on-premise solutions. Still, there are exceptions where such software can be more beneficial to organizations.
This is a common choice for organizations that need to comply with specific regulations related to data storage. Although cloud solutions often come with advanced cybersecurity protection and offer backup capabilities, on-premise systems offer maximum control over your data because it is stored locally.
In addition, businesses located in regions with insufficient bandwidth prefer on-premises ERP systems.
For this reason, some leading ERP systems, such as Microsoft Dynamics 365 Finance and Supply Chain Management, are available in both the cloud form and on-premises. Although a company has to make a choice of the exact option before implementation, it does not have to sacrifice the functionality it would like to deploy because its preferred software cannot be implemented on premises.
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