What is Cloud ERP? | Benefits of Cloud ERP

What is Cloud ERP?

Cloud-based ERP is a system of software and tools for resource planning for companies that are hosted and managed in the cloud by your provider outside of the company. With cloud deployment, you can focus on running your business rather than managing IT. Cloud-based SaaS systems burden the provider and not your company with management and maintenance. Cloud ERP offers ongoing and seamless software updates that are included in your one-time fee. The provision of cloud ERP also requires little or no IT involvement. This allows your team to add value to the company by spending more time on tasks that support strategic growth initiatives.

ERP is an abbreviation for Enterprise Resource Planning (ERP). It is a business process management software that manages and integrates a company's financial, supply chain, operations, reporting, manufacturing, and human resources activities.

Security will always be a priority. When you invest in the Cloud ERP Implementation with Intellika, you also benefit from a first-class security infrastructure, best practice, and disaster recovery support.

Cloud ERP Benefits

Easy Scalability

Compared to local ERP solutions, Cloud-based ERP systems are easily scalable, which means that if you need concurrent access to applications for 100 or 1000 users, the elasticity of the cloud can support the request. This makes it easier for organizations to expand or reduce according to their requirements. Having the ability to use only the necessary resources is an excellent way for your organization to save effort and money.

Easy Accessibility

Cloud ERP is better in these areas than other types of ERP implementations. Because your ERP system is managed in the cloud and is ready for everyone, your computer can access the tools they need from anywhere using their mobile phones and an Internet connection. The information can be accessed in real-time, so you can make key business decisions without having to wait until everyone is in the same room or access your ERP system from the same place. In other words, it helps you build a more agile team. This focus on instant accessibility and enhanced collaboration helps boost productivity both inside and outside your company.

Lower Costs

A cloud-based ERP can be used by setting up an account with a fixed monthly rate, which means that the total cost of implementation will probably be much lower. Beyond this, some ERP providers can also manage the solution, taking care of installing and maintaining the systems. This, in turn, equals operating costs and, if implemented correctly, could even result in a general decrease in expenses.

Every ERP solution in the facilities requires a considerable amount of hardware power to support it, along with the knowledge and input of trained personnel. The effort to install and maintain applications grows over time and for any small or medium-sized company, this is an additional expense. Combine this with the fact that buying the ERP solution and related licenses could add up to a large percentage increase in the overall IT budget.

Disaster Recovery

Cloud-based ERP systems have well-defined policies and plans for backup, restore, recovery, and many other disaster recovery tasks that ensure your data is never lost or completely out of reach.

Support

Cloud ERP hosting companies provide 24X7 support. Beyond the obvious, Cloud ERP providers also continuously update ERP solutions with the latest patches, security vulnerabilities and more.

Cloud ERP comes with its own set of challenges. Businesses must accept the risks surrounding compliance, security, hidden costs, and organizational challenges. Therefore, anyone trying to get into the cloud ERP bandwagon needs to consult with a provider with deep technical expertise in the cloud ERP space.

Easy Implementation

Cloud ERP can also be up and running in a much shorter time than on-premises ERP systems. With on-premises ERP, you need to choose and buy hardware, train IT, staff, potentially hire more people, implement new data security protocols, and ensure that your team has all those tools Has reliable access they need to help. You grow your business. With cloud ERP, deployment and implementation are fast and painless. Deploying your software in the cloud is also reliable and provides easy data access in real-time from anywhere - which can help make your entire team more collaborative and successful in their roles.

Performance

Cloud-based ERP solutions are much faster than in-house ERP because the former requires a stable Internet connection while the latter requires a reasonable amount of computer power to function with the highest efficiency. In the former case, the resources to host the solution are considered by the provider, which means that the system should outperform most of the basic solutions configured similarly.

Cloud ERP Challenges

Cloud ERP provides many benefits, but also creates some management challenges. Administrators lose some control when software moves offsite. While limited customization is possible by changing the configuration and configuration of the software and adding extensions, the local ERP is much more customizable. Cloud ERP, especially SaaS, often requires substantial training and change management for employees to get used to new workflows and business processes.

Companies must also adapt to the security of the ERP provider in the cloud, which may not be as secure as the local ERP. They should pay special attention to the data residency requirements of different countries and follow local privacy and security regulations if their ERP data resides in multiple data centers.

Cloud subscription costs can begin to exceed local licensing costs in fast-growing companies, making ERP in the cloud more expensive overall. Financial risk requires that ERP buyers educate themselves about the most common SaaS ERP subscription models and carefully analyze each vendor's plans, which can be quite complicated.