We love to talk the way Cloud ERP has streamlined implementation and helps small and medium-sized manufacturers gain efficiency without lots of servers at their sites, demanding expensive upgrades and maintenance!
Now, a genuine approach of streamlining businesses have allowed companies to discover their bright scores and advancement only with Cloud ERP; as an exemplary part of their working marvels. As Cloud ERP provides computing access to a vast spectrum of capabilities, moving away from legacy systems; people are beginning to realize that moving data and applications to a reputable cloud vendor wouldn’t trigger a series of catastrophic events that companies once feared.
According to Panorama’s ERP report of 2015, 40% of the companies avoid Cloud ERP implementation due to lack of proper information, 20% because of the risk of security breach and 10% due to the risk of data loss. This post makes an attempt to create awareness about Cloud ERP and it’s out of the box benefits.
Cloud ERP, is a way of delivering Enterprise Resource Planning (ERP) applications over the cloud. It is an alternative of implementing ERP with added capability of being accessed from any device with an internet connection. This is different from the conventional method of purchasing licenses to use ERPs. Software as a Service (SaaS) facilitates the availability of ERP-and it features for a reasonable price, based on monthly subscriptions.
If yours is a rapidly growing company and in need of an ERP implementation that can assist your progression, then the Cloud ERP can be the best select for its cost effectiveness, flexibility, scalability, security, and speed. Let’s have a look at the top five ways in which the Cloud ERP can be beneficial for your business.
The most common reason to avoid ERP by many organizations is its heavy cost of implementation. Usually, the expense goes up to lakhs, especially in the cases of exclusively customized solutions. According to a research conducted by Aberdeen group: The organizations with SaaS ERP, spent exactly 100% of their ERP implementation budget on implementation, compared to organizations with on-premise ERP that went 12% over budget.
It lets you escape from the hassle of complex hardware and software management, instead, utilizes already available in-house systems to avail its benefits. Since ERP on cloud doesn’t require any additional hardware, it saves a lot of money spend in procuring and installing its infrastructure. The organizations, which deploy ERP on cloud are entitled for 100% support and maintenance by IT experts of the service providers, which if they employ at their own end can cost them really high.
Apart from this regular backups, maintenance activities are taken care by the service providers, hence, company is not required to spend on hefty annual maintenance cost, and restoration is absolutely free. Moreover, there is no extra expenditure in terms of money and labor for upgrades which is yet another advantage.
Flexible and Secure
ERP on cloud is also flexible and cheap due to its accessibility from anywhere through any internet enabled devices like desktop, laptop, mobile or tablet. Users can simply login using the authorized credentials, from anywhere and at any time allowing greater collaboration among departments. Data security is ensured by digital signatures and passwords.
Fast and Reliable
Exceptionally fast deployment, rather, ready-to-use in many cases, much like instant noodles, where you get what you want sans any considerable waiting time. The outcome is also satisfying like your instant noodles. You will be surprised to know that SaaS ERP solution are implemented, on an average in 63% of the time that it takes to install an on-premise solution. (Source: Aberdeen Group). The catch here is only that your ERP’s data centers need to be maintained by renowned web services which overcomes the drawback of geographic diversity and stores the data at multiple locations, so that there is a backup always. Moreover, the disaster recovery facility should be sound that runs 365 days of the year and ensures that not even a single bit of data is lost with automatic backups scheduled regularly.
Downtime Close to Nil
The service delivers the performance by remarkably good uptime i.e. up to 99.7%. So, loosen up your fears of facing halts or rundowns at the most crucial times.
Notifications of recent upgrades and amending activities are auto generated on the client’s server. These upgrades and backups are conducted during holidays or at night, bringing down the wastage of productive hours to almost zero and the system remains current, up-to-date and available 24X7.
Yet another statistic reveals that organizations with SaaS solutions achieve ROI 75% faster than those with the on-premise solutions. The following facts were emerged by a research conducted by Aberdeen group and justify the cost effectiveness of SaaS ERP for medium as well as small scale companies.
SaaS ERP vs. On-premise ERP
|Parameters||SaaS ERP||On-Premise ERP|
|Improvement in inventory turns||45%||41%|
|Reduction in operational cost||22%||14%|
|Reduction in administrative cost||20%||13%|
|Improvement in Complete and on time shipments||19%||14%|
In a nutshell
It doesn’t matter your organization is big or small, ERP on cloud brings significant cost saving ways for your business. However, SaaS ERP is more beneficial for the new organizations or the first time ERP buyers, as they can leverage its benefits quicker. This quick “Time to Value” feature has resultant impact on ROI. Such cost saving features make SaaS ERP a sensible, can’t afford to lose kind of opportunity.
So, when are you allowing your company to immerse and discover its phenomenal working possibilities through a Cloud ERP?