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Top Things To Consider When Moving From On Premise To Cloud ERP

Tuesday, 28 January 2020, 09:36 Hrs

ERP systems have been an essential part of modern-day business. With the technologies changing ERP systems are also going through rapid changes. One of the recent modifications that have been happening in the ERP technology is cloud computing. Companies are also moving from traditional on-premise ERP systems to cloud ERPs. Simply defined cloud ERP is a service that allows ERP users to access their ERP system through the internet. This new technology solves the biggest disadvantage that conventional ERP systems had and that was high implementation costs. Due to the reason that the computing resources are leased in cloud ERP companies both big and small are provided with the opportunity to develop their business. Another big advantage that the cloud ERP systems have over conventional on-premise ERP systems is that it allows the users to access their business applications regardless of the time and place. This new technology is more useful for small and medium businesses that are not financially able to implement on-premise ERP systems in their company. With the help of the most suitable cloud provider, these companies can really utilize the true potential of the business and run the operations smoothly. Apart from the monetary gains, there are various other advantaged that cloud ERP systems have including:

1. Simplifying technical complexities: One big advantage of cloud ERP systems is that it gives the users the ability to access the needed data remotely without having to go through robust IT staffing and complex configurations.

2. Easier implementation: As mentioned before, cloud ERP systems are easier to implement when compared to the traditional on-premise ERP systems. Less implementation time translates to more time available for concentrating on the actual business side of your operations.

3. Easier to operate: Again, compared to on-premise ERP systems, cloud ERPs are much easier to operate and because of that employees can get the hang of it quickly. Even though it doesn’t mean no training is needed but cloud ERP systems are much more compliable and the company will only feel lesser resistance from the employees when implementing cloud ERP.

4. Increased data security: With the cloud ERP vendors being so vigilant all the time regarding the security aspect of the cloud, it is safe to say that the data that you store on your cloud ERP is safe and secure. With a lot to lose cloud ERP vendors employ strict security measures ensuring the safety of your valuable data.

Even though implementing cloud ERP systems has got various advantages, there are certain things that should be addressed to make the transition seamless.

1. Choosing the most suitable one: This may seem obvious but choosing the most suitable cloud ERP vendor will have a massive impact on the performance and success of your business. If you are going to go with public clouds you may be saving a quick buck but because public clouds use the same software, hardware and networking components the security will be lower in this type of cloud. If you are going for private clouds then the initial cost and maintenance will be high but it will offer greater security and flexibility.

2. Keep an eye on the expenses: Most companies going for cloud ERP will be choosing it because of the cost aspect but if not implemented properly cloud ERP can also have a massive hit on your wallet. Analyze and evaluate all the expenses that you will incur and only then make a decision.

3. Importance of having a data migration plan: The most important thing to consider and sought out even before making the move is to have a proper data migration plan. Pick and choose the most important and suitable applications to transfer to the cloud ERP systems.

It is clear that cloud ERP is the way to move forward and by choosing the right cloud ERP vendor, your company can really scale their operation.