Technology should make your life easier, not harder. That’s the main reason why companies decide to invest in enterprise resource planning (ERP) technology. It provides a platform for process efficiency, business agility, cost control, and growth.
But after decades of running on-premise business systems and infrastructure, there is now a viable, affordable alternative to successfully managing your operations. If you’re currently looking to adopt a new ERP system or replace an outdated solution, you already know the benefits of ERP. What you may need help with is understanding the value of the cloud.
As the cloud continues to be one of the fastest-growing segments of IT spend, the biggest shift is happening in business applications (i.e., ERP software). As more and more small to midsized businesses in all industries choose to host and deploy their ERP system and critical data in the cloud, it’s time to get to the bottom of why. In this blog post, we are going to provide a full overview of cloud ERP and share 8 ways that the cloud positions you to grow and scale your business.
Quick Overview of Cloud ERP
Cloud ERP software is an integrated business management platform that is delivered as Software as a Service (SaaS). That means the business modules and data in your ERP system are hosted in remote data centers, and users can access it securely through the internet.
When you purchase cloud ERP, you pay a monthly or annual subscription fee that includes on-demand access to your data and applications, as well as storage, hosting, upgrades, and security. Basically, your cloud solution vendor is responsible for managing the lion’s share of work, so that you can save on upfront costs and infrastructure.
The beauty of the cloud is that there are plenty of options to choose from depending on how much control you want over your systems. You have the choice between 3 deployment options:
- Option 1: Public Cloud
A public cloud is a shared cloud environment that is owned and operated by a cloud vendor, like Microsoft Azure or AWS. Public clouds are shared with other customers and are highly available and cost-efficient, which is why 41% of SMBs favor the public cloud (Flexera)! The only caveat is that there are some compliance and security standards that they may not be able to meet.
- Option 2: Private Cloud
This is where a company hosts its own on-premise data center or pays a third-party service provider to host the private cloud. A private cloud is more expensive than a public cloud, but it does give you total control over your environment and security.
- Option 3: Hybrid Cloud
The type of ERP deployment combines both public and private clouds and is often the weapon of choice for companies looking to transition to the cloud at their own pace. This option allows you to host some of your infrastructure in the public cloud while managing sensitive data in a private cloud.
As you can see, cloud ERP software is a practical solution for growing businesses that want to simplify their operations and save costs while meeting today’s modern, remote work expectations. It’s important to keep in mind that although cloud ERP has some notable differences, it is still similar to on-premise ERP systems in that you are still required to pay for additional customizations, user training, and ongoing partner support.
8 Ways Cloud ERP Can Help You Grow Your Business
While there will always be companies with years of experience and equipment who opt for the on-premise or hybrid route, the benefits of the cloud can’t be ignored. Faced with the choice between cloud and on-premise deployment, more and more companies are motivated by costs, usability, accessibility, and scalability for the future. Here are 8 reasons why many of these companies are opting for cloud ERP software:
- Make Faster, More Strategic Business Decisions
Cloud ERP software brings together your data and applications into one easily accessible platform to automate key processes, improve operational visibility, and enhance communication—all of the steps required to access accurate reports instantly, analyze performance, and make timely, impactful decisions.
- Redistribute Operating Costs
Instead of investing your money into additional hardware, maintenance, upgrades, and IT personnel, cloud ERP reduces the upfront setup costs and allows you to redistribute them in more value-added areas of your business, like support and training.
- Provide Access to Data and Applications from Anywhere
With a stable internet connection, you and your employees can access the information and applications you need to run your business efficiently from anywhere. This is essential to extending remote work opportunities and facilitating the home/office hybrid work environment post-pandemic.
- Add More Functionality and Locations as Needed
Cloud ERP can be configured quicker than on-premise ERP software, which gives you the upper hand when it comes to adding more functionality or locations to your core system. Many cloud ERP solutions provide a wide selection of apps or third-party extensions to customize your solution even further—without downtime or extra hardware. For example, Tigunia offers a Shopify Integration app built to seamlessly integrate your eCommerce store with Dynamics 365 Business Central. This app, and others available on Microsoft AppSource, can be easily tested with a trial before committing.
- Take Advantage of Multi-Layered Cloud Security
Cloud ERP provides most businesses with more security than they could ever imagine on their own. The reason is that they are backed by the most advanced cloud companies in the world, which provide multi-layered security across their data centers, infrastructure, and operations. With that in mind, you can get more familiar with cloud security in the blog post below.
- Adjust Quickly to Changes in the Market
Cloud ERP is known for its agility and scalability. It provides the infrastructure required to easily scale up or down and adapt to your environment. This allows you to pay only for what you need and choose what functionality works best for your business at any given moment.
- Simplify the Upgrade Process
Gone are the days of avoiding upgrades. Cloud providers are responsible for regularly updating the core cloud ERP software, so you no longer have to set aside time and resources to upgrade the system. Consistent cumulative upgrades happen in the background and don’t cause any business disruption or downtime.
- Always Run on the Latest Technology
With regular upgrades, your cloud ERP system is always up to date on the latest and greatest features, bug fixes, and security enhancements. This means your users get to experience a true modern user interface that runs optimally and securely at all times.
How to Choose a Cloud ERP System That Best Fits Your Goals
As you can see, cloud ERP technology has all the features and benefits to keep up with competition and meet the demands of today’s modern workplace. But it’s a big move, and not every company has the resources and knowledge in-house to dive in headfirst.
Tigunia is focused on solving business needs for growing SMBs. One of the best parts about cloud ERP software is the fact that it’s flexible to fit all types of businesses and requirements. If you’re still wrapping your head around what cloud ERP can do for you, that’s where our experts can help. Book a no-pressure cloud assessment with Tigunia, and we’ll answer any questions you have about the cloud migration process.