Some Pros And Cons of Cloud Based ERP Implementations
by Farrah Pappa on 29/08/12 at 4:13 pm
Organizations have long installed enterprise resource planning (ERP) solutions on site. ERP solutions provide automated processes that improve business efficiency and visibility across the organization. Small to medium organizations are seriously considering cloud based ERP implementations. Cloud-based ERP solutions differ from traditional ERP systems.
Some key differences are:
- The software is not licensed or owned by the user, it’s provided as a service over the Internet.
- Users subscribe to a complete turnkey package that includes software and the entire delivery mechanism.
- Users can access the system over the Internet regardless of their location.
With the recession cutting IT budgets, it has become harder to invest in new technology without feeling the pinch.
Pros:
- Lower upfront costs and total cost of ownership (TCO) – Cloud ERP solutions offer pay-as-you-go plans, and reduce what you spend on hardware upgrades and maintenance.
- Align IT infrastructure with business requirements – The high level of deployment flexibility allows companies to align their business strategy with their technology requirements to achieve their goals.
- Ease of deployment and management – Browser based access to the ERP application eliminates the need to install/maintain client software, work with servers, network connections and application software. When something goes wrong simply call the vendor to the fix the issue, outsourcing your IT hiccups to a third party allows your IT to focus on their goals.
- Accessibility – This web based software allows users to access their applications from any location at any time without the need for the organization to install a virtual private network (VPN).
Cons:
- Security – This is entirely controlled by your vendor so while they may promise you that they have far more superior security than your internal policies – you have no guarantee. Any changes in access control or role upgrades have to be done by the vendor and can’t be done by your administrators.
- Downtime – A huge factor to consider since your entire system runs on the availability of the Internet. If this was to go down, so would your entire ERP infrastructure. Nothing in the cloud can be accessed without Internet access.
Moving your ERP system to the cloud can bring your company both cost savings and convenience. Now is the time to consider if it’s time to migrate your ERP system to the cloud and reap the benefits it provides many businesses.
About The Author: Farrah Pappa is a Web Editor for Cloud Computing Insights, where you can find helpful guides and whitepapers on ERP in the cloud.
Recent Comments