5 Reasons Why Cloud ERP Benefits Your Business

The evidence is clear. Saving data in a Cloud ERP is a superior storage method to store datainstead of using physical data storage methods. While the use of these internal hardware systems sometimes have merit and prove to be useful, Cloud ERP systems are unmatched in the many benefits they provide to a business.

Boasting features such as cost reductions; freedom to transport data; improved opportunities for innovation; reduced risk of lost data; and flexibility in the data storage features offered, Cloud ERP systems are ideal data storage systems.

5 Reasons Why Cloud ERP Benefits Your Business

Benefit Number 1: Reduced Costs for a Business

For starters, using Cloud ERP systems are much more cost effective than using physical servers. Let’s face it. Businesses strive to increase their bottom line by not only increasing profits but also reducing costs. Historically, storing data has been a costly exercise. For example, back in 1999, a company would spend $3.00 to manage data on hardware the cost $1 dollar.[1] Yes, that is right. The cost ratio was $3.00 to $1.00. Cloud ERP eliminates or greatly reduces the need to use physical hardware, thus reducing the costs of managing and storing these machines.Enterprise Apps Today reported that Cloud ERP is a major time-saver as well as being fiscally efficient. Quoting Christine Hansen, the Product Marketing Manager of Epicor, Enterprise Apps Today further indicated that these lower costs result from decreased IT expenses.These lower expenses decrease the overhead costs of the business and thus free up monies to be available for hiring personnel, conducting research and development initiatives and reducing the costs of the products a company sells.[2]An example of a large business that has experienced great success and cost saving using a cloud system is WhitePages. Through the use of 11 different cloud systems this business has saved much more than they expected these programs to cost.[3]

Benefit Number 2: Freedom of Movement

If a business maintains their data on physical hardware structures, the possibility of transporting the business is restricted. By transporting the business it is not necessarily meant that the business will pack up its belongings and drive or fly to another city, state or country. While this does occasionally happen, transportation of data without physical movement of the business entity happens all of the time. It happensnot only when staff travel for a business meeting or conference, butif they just need to access their email or the company database while at home or otherwise outside of the office. When business data is located on hardware, it is much harder or impossible to access such data. This lack of mobility of the data can negatively impact the efficiency and effectiveness of a business. However, when a Cloud ERP system is used, a business’ data can be accessed with ease and speed from anywhere.[4]All that is needed is access to the internet and a computing device. Such location-free access allows business to be done anywhere and everywhere, which maximizes efficiency, effectiveness and profits.

Benefit Number Three: Reduction of Risk of Loss of Data

While physical servers have been in use for years and do have their merits, mostly everyone can share a story where these hard drives malfunctioned, were damaged or otherwise failed and data was lost. With the use of Cloud ERP systems this risk is all but eliminated as there is no physical structure available to experience a malfunction. Further, much building space or another storage facility must be allotted to house these servers. This can be a particular challenge for new and growing businesses whose physical space may not be able to keep pace with the increased data space needs. Finally, a Cloud ERP system collects and processes data unlike a physical server. Physical servers must process information and deal with all work produced at a specific time simultaneously. This increases the likelihood of a problem. Cloud ERP systems on the other hand, have the capacity to spread this batches of work to a public cloud. This helps to enable smooth access to enough capacity to support work flow needs.[5]

Benefit Number Four: Improved Opportunities for Innovation

Technology is constantly developing and improving with Cloud ERP systems being no exception. Accompanying this development, comes new abilities, features and other benefits which make these systems even more beneficial to a business.[6] Innovation is one of the major driving forces behind growing and developing a business and current trend in Cloud ERP computing will support this. This is particularly true for new companies that are starting up. With the low cost of Cloud ERP, these new start-ups can store and manage their data while using more of their money to support the development and growth of the business. This increased financial stability puts new start-ups in a position where they can more efficiently compete with larger and more established businesses.[7]

Benefit Number Five: Differing Cloud ERP systems = Flexibility for Businesses

There are different types of Cloud ERP systems and the offer features and benefits. For instance, the private Cloud ERP systems work with legacy systems, whereas hybrid systems allows for features which are customized for the specific business using the system.[8]As these systems are not tied to a physical structure and thus do not require the financial or time-bound commitment to a physical server, it is easier to change and/or upgrade the Cloud ERP system being used.[9] This may be particularly important for new businesses which must most effectively and efficiently use their usually limited resources to support the growth and health of their enterprise.

Conclusion

As established above, Cloud ERP Programs are far superiorto physical servers. With benefits such as cost reductions, freedom to transport data, improved opportunities for innovation, reduced risk of lost data and flexibility in the data storage features offered, Cloud ERP systems are an excellent choice for today’s cutting edge businesses. Such benefits will help to maintain and support the development and strength of these enterprises helping to pave the way for long-term sustainability and profit-making.

 

[1]The Cost of Owning and Storing Data, by Glenn Nagle, http://www.storagesearch.com/costdata.html, Accessed Dec. 12, 2014

[2]Top Ten Trends in Cloud ERP, http://www.enterpriseappstoday.com/erp/top-10-trends-in-cloud-erp.html, Accessed Dec. 12, 2014

[3]The Real Costs of Cloud Computing, Computer World, http://www.computerworld.com/article/2550226/data-center/the-real-costs-of-cloud-computing.html, Accessed Dec. 12, 2014

[4]Cloud ERP Benefits, JAMIS, http://jamis.com/solutions/cloud-erp-benefits/, Dec. 12, 2014

[5]Trends in Cloud-ERP for SMB’s: A Review , International Journal of New Innovations in Engineering and Technology (IJNIET), http://www.academia.edu/5829405/Trends_in_Cloud-ERP_for_SMBs_A_Review, Accessed Dec. 12, 2014

[6]Cloud ERP Benefits, JAMIS, http://jamis.com/solutions/cloud-erp-benefits/, Dec. 12, 2014

[7]Trends in Cloud-ERP for SMB’s: A Review , International Journal of New Innovations in Engineering and Technology (IJNIET), http://www.academia.edu/5829405/Trends_in_Cloud-ERP_for_SMBs_A_Review, Accessed Dec. 12, 2014

[8]Cloud-based ERP has many Advantages, Fewer Drawbacks, Industry News, www.disys.com/cloud-based-erp-has-many-advantages-fewer-drawbacks/, Accessed Dec 12, 2014

[9]Trends in Cloud-ERP for SMB’s: A Review , International Journal of New Innovations in Engineering and Technology (IJNIET), http://www.academia.edu/5829405/Trends_in_Cloud-ERP_for_SMBs_A_Review, Accessed Dec. 12, 2014

Marissa Hart
Marissa Hart is the Lead Author & Editor of ERPeople. ERPeople is a blog focused on all Enterprise Resource Planning business management platforms. ERP can be used by a company to collect, store, manage, and interpret data from many business activities, including: Product planning, cost, manufacturing or service delivery, marketing, and sales.
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