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Advantages of Using a Cloud-Based ERP

Advantages of using cloud-based ERP software

While there are a variety of ERP (Enterprise Resource Planning) options currently on the market, it is not always easy for a company to decide which ERP is right for them, the one that will help with their unique needs. Before diving into the specific features and functionality of a particular software package, it is important to decide between an on premise, cloud – or some combination thereof – ERP strategies. Undoubtedly, there are advantages and disadvantages to each approach, but overall, the advantages of using a cloud-based ERP outweigh the disadvantages.

The following are just some of the advantages of using a cloud-based ERP:


Chances are your internal IT department is already working at capacity. Rarely do we hear of companies where the IT department is looking for things to do. Most do not have the bandwidth to manage an ERP on top of their daily activities. When they spend many days on the maintenance, updates, and repairs that an on-premises ERP system requires that is not time well spent. However, when the ERP resides in the cloud, the regular maintenance is handled offsite and automatically. It frees up your IT resources to work on projects that you want them to be working on; projects that help move your company forward.


When a company decides it is ready for an ERP, it is usually an indication their current systems are no longer adequate for their business needs as they are in a growth mode. One of the most appealing features of any cloud-based ERP is its ability to easily scale up (or down) as a company’s needs change. With an on-site system, it is a time and labor-intensive process to scale capabilities. However, with cloud-based ERP you can move to a larger, more capable system immediately, affordably, and without limits. In addition, if you find that your needs change downward (e.g., seasonal needs) it is easy to scale back capabilities.


Your ERP is essentially a repository for all of your company’s data and as such, security is critical to your company’s success. And while data security is a challenge no matter where the data resides, a cloud-based ERP provides an extra level of security. It is not just your in-house IT team watching, but also your cloud provider that is watching out for the security of the system. It is not a guarantee against attack, but it is a nice extra safety net.


Implementing an ERP can be a challenge and costly. However, when using a cloud-based ERP, these challenges are easier and cheaper to overcome. When you choose a cloud ERP, the service provider helps you to plan, customize, and implement your system. As a result, the implementation is faster resulting in a smaller investment in company time and resources.

These are just a few of the advantages of a cloud-based ERP, however, cloud ERP is not for all companies. Your organization’s specific structure, processes, and needs will determine which option is best for your business.

To learn more about the various ERP options available, contact us today and we can help you determine what ERP is best for your company.

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