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The Cloud and ERP Systems

Why are cloud-based ERP systems so popular?

According to a 2017 report from Intel Security titled “Building Trust in a Cloudy Sky: The State of Cloud Adoption and Security”, 80% of all IT budgets are committed to cloud solutions. Additionally, it was reported that 73% of companies are planning to move to fully software-defined data centers within two years. So why the big shift? Why is the cloud so popular for hosting ERP solutions?

Cloud-Based ERP Solution Myths

For starters, it is important to break down some common misconceptions about ERP within the cloud. Many people worry about the cost of implementing an ERP system and assume that on-premises is a cheaper option. However, that’s not necessarily the case. The cloud can be a great option for some companies because it often has lower up-front costs and licensing fees. For businesses just getting started with ERP, this can be a way to ease in without signing away the bank.

Another common misunderstanding about cloud-based ERP is that it threatens or even eliminates jobs within an organization. Though it could certainly restructure responsibilities within a company’s workforce, a cloud-based ERP solution – when implemented successfully – can actually boost specific job growth. By automating many of a company’s functions, IT resources (including workers) are freed up to be employed more efficiently.

A final misconception about cloud-based ERP systems is that they compromise data security. While it is always good to be vigilant when it comes to cyber-security, it’s crucial to recognize the leaps and bounds that have been made in data protection. While no system is completely secure, cloud-based ERP has built-in security features to combat this risk and ensure that any information stored there does not fall into the wrong hands. For wary buyers, there is also the option for third-party security assessments for any systems they are considering.

Why are Cloud-Based ERPs So Popular?

Now that we have broken down common cloud-based ERP myths, we can begin exploring why so many businesses choose cloud-based rather than on-premises ERPs. One benefit of the cloud is the way it is licensed. A cloud-based ERP license provides for software updates on a continuous basis rather than yearly. This means staying up to date with the latest technology and tools the software provider has to offer and having the confidence that your system is performing as well as it should be. The more recent and streamlined the process is, the easier it is for companies to focus on bettering their core business rather than wasting valuable time on administrative work that could be done by an ERP system.

Another advantage of cloud-based ERP is that many software providers allow extension of the suite without modifying code. This extends the functionality of the system without adding to the time or cost it takes to install and modify the system. Many businesses also worry about the time it takes to implement an ERP system and how they will function until it is fully up-and-running. Implementing a cloud-based ERP system is often quicker than implementing an on-premise system, which can make all the difference for those trying to keep their businesses running smoothly.

Finally, many cloud-based ERP systems offer extensive mobile functionality, placing valuable information at your fingertips. Further, they’re not subject to the same restrictions as on-premises networks. This is crucial for information sharing across an organization. It facilitates communication across departments, makes it easier to track projects and the overall health of the business as well as additional issues that may arise.

Learn More from ArcherPoint

If you have questions or your company is considering implementing an ERP system, consider Microsoft Dynamics 365 Business Central and contact ArcherPoint. Our professionals can help you find the right Microsoft Dynamics ERP Software solution for your business.

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