We have been learning the importance of an ERP system and the numerous benefits it offers to the companies specifically large businesses having number of departments and requiring cross-functional communication to perform various operations. Yet having such powerful system comes with an upfront cost that could not affordable by many SME’s, they need to have an IT department to manage the complex system also infrastructure costs for having up-to-date equipment and the physical storage space to house it all.
How can SME’s have the facilities of ERP system with reasonable costs? The answer is Cloud ERP, which is provided as a service where the data is managed in Cloud by the ERP vendor which is accessed by the customers via web browser. Cloud ERP has been able to be cost effective as it:
- Prevents upfront costs for equipment and the physical storage space.
- Lower need of IT support as IT is in the cloud
- Remove maintenance and support cost since update and upgrades are handled by the cloud vendor
- Fixed monthly plans gives flexibility to use cash on core business
- Immediate availability as no installation equipment’s and software required
And many other benefits. With technological and security advancement in future, maybe Cloud ERP could make the on premise ERP system outdated.