Your enterprise resource planning (ERP) solution is crucial to running a successful growing business. While many companies are now moving to cloud-based ERP solutions, others might not be ready to move off on-premises deployments. Where ever you are on this consideration scale, here's what you need to know to guide your ERP deployment decisions, both now and in the future.
What is driving increased cloud ERP adoption?
Organizations want to see value from their technology investments and they don't want to wait for implementations that take a year or more to see that value manifested. Nucleus Research, in a December 2017 report, stated that cloud deployments deliver 3.2 times the return on investment of on-premises deployments. This is notable and extremely significant--especially to C-level executives who are increasingly part of the ERP selection process.
Cloud ERP is quickly levelling the playing field, enabling even smaller businesses to rapidly leapfrog older, more established companies, and that is very compelling. In the past, businesses considering cloud ERP were attracted by the cost benefits. The ability to consume ERP on a monthly subscription basis offered businesses the ability to leverage OPEX as opposed to CAPEX, and eliminating the responsibility for businesses to run and manage software applications and invest in servers and infrastructure.
But aside from bringing about improvements in responsiveness, agility, and costs, the cloud is helping businesses digitally transform and get fit for growth. As businesses shift away from traditional on-premises systems to cloud-based ERP they are taking advantage of new capabilities to improve their business and optimize processes. What's more, it's enabling teams to access real-time information from across the business and use that data to make better business decisions.
Are customers still concerned about security implications of cloud ERP?
Understandably, security will likely always be a concern no matter how far technology progresses, but companies need an insight-driven strategy to outpace ever-evolving threats. The reality is all software is prone to viruses and vulnerabilities, whether it is stored on premises or in the cloud. Having your ERP in the cloud offers several security benefits that could outweigh on-premises options for your business. Your ERP is automatically upgraded by your ERP vendor more often so that you are constantly and consistently safeguarded with the latest...