In recent years, many companies are expecting benefits from relocating their ERP systems to the cloud. The biggest concerns of the past time, namely data protection and security, are today mapped as extensively in the cloud as in on-premise systems. That’s why many companies are considering taking the final step. Even the outsourcing of critical processes and systems is no longer an obstacle.
But why, is this step not only an investment in the future, but also a clear step towards competitiveness for SMEs (small / medium enterprises)? We would like to explain the advantages of a Cloud ERP here:
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Scalability
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- Growth
An ERP system from the cloud is often seen as a growth driver. Through flexible business structures and transparency of the individual business areas, a company can decide modularly which processes and work areas are mapped. The company no longer has to worry about issues such as system availability, performance, hardware or data security and can focus on its day-to-day business.
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Reduced Infrastructure
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- Maintenance and installation
By eliminating the need for in-house operation of the ERP system, internal IT is significantly relieved. Topics such as database administration, update installations and server maintenance are a thing of the past within the framework of the ERP system. The time saved can be invested in digital transformation, possible projects or other initiatives.
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Security
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- Data protection and access restrictions
Companies often worry about IT security in the cloud. However, switching to the cloud through reputable providers can also be very helpful in this area. This guarantees that company data is stored on country-specific servers with high reliability, clever back-up concepts and significantly stronger access controls. Many companies or smaller data centers are often unable to offer such a service. German Cloud ERP systems in particular are also familiar with the tricky data protection obligations of GDPR.
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Legal requirements
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- Expenses, vacation & Co
The world is changing – so your systems should change too. This is how another advantage of Cloud ERP systems could be described. Correct maintenance in the event of changes to legal framework conditions, such as expense rates abroad, working time regulations or public holiday calendars, are part of the offering of large Cloud ERP manufacturers. This relieves the internal IT and other company departments, which had to invest time in such changes with many on-premise systems.
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Budgetable costs
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- Costs of an ERP system
The operation of an ERP system is accompanied by costs. These costs are difficult to calculate for on-premise systems. The internal IT generates strongly fluctuating costs with the maintenance, the supply of updates, the support and with the care of legal parameters. The advantage of cloud ERP systems is that the majority of these costs are covered by a fixed monthly license fee, making planning much simpler and more reliable.
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Mobility
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- ERP from everywhere
In a world in which the topics home office, working at the customer’s or on the road are moving more and more into the foreground, a modern company should be equipped for this. While with on-premise systems such a preparation can only be implemented securely with VPN tunnels and the system is then usually subject to other restrictions, a cloud ERP system can be operated from all end devices. Thanks to browser-based control, this is possible from anywhere. If you wish to restrict this functionality (e.g. prevent it from being used in an internet café), cloud ERP manufacturers offer security concepts such as SSO (Single Sign On).
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