This is the digital world, and there are several Enterprise Resource Planning (ERP) options currently available in the market that a company can choose to meet its business objectives. However, you might not find it easy to decide which ERP system is best suited for your company’s unique needs.

Why an ERP on the cloud is a better option

To understand why an on-cloud ERP is better, we need to learn the difference between a conventional on-premise ERP and ERP on the cloud. They both come with their advantages, but certain distinctions make the cloud-based ERP a better option. Let’s look at these features:

Resources

In the digital age, most in-house IT teams already have plenty of things to take care of. In such a scenario, most of them don’t have the bandwidth available to take on ERP management’s responsibilities over and above what they are already assigned. However, a cloud-based ERP doesn’t require maintenance obligations, and your IT personnel can work on things that they are supposed to manage projects that help your business make money.

Scalability

When a business realizes that the technology used previously has become inadequate to meet the growing needs, the best option is to go for a cloud-based order management system.

A cloud-based ERP system offers great flexibility of scaling up when the demand peaks or scaling down if the demand for a particular service goes down. On-site systems would require time and labor-intensive services to increase the capabilities. However, a cloud ERP system allows you near-instant access to a more advanced system in a cost-effective manner. You can choose limitless options of scalability, and in the future, if your organization needs to cut down, then all you need to do is to downsize the subscription and not have expensive redundant equipment to deal with.

Security

ERP is not just another system. It is a central hub linked to all the valuable data and information about your organization. Therefore, top of the line security is essential to ensure the company’s success. In many circumstances, data security has become a significant challenge for companies, and that’s where a cloud ERP system provides additional security features. There is not just your internal IT team managing it, but also the cloud service provider who probably deploys such advanced security fences around your data that could be too expensive for a regular business to acquire.

Expense

Since on-premises ERP requires a lot of equipment, space, and human resources to implement, it is bound to be a cost-intensive affair. In contrast, a cloud-based ERP is cheaper, faster, and more convenient to manage. Your service provider offers the platform and the technology, and based on your needs, the service is planned, customized, and implemented.

These are the key benefits that cloud-driven ERP offers you, but you need to analyze your company’s needs, structure and processes before choosing the system that you find best suited for business growth.