According to a survey, although only 2% enterprises move their ERP system to the cloud, almost 50% enterprises plan to adopt cloud ERP system within 10 years. Because of the rapid development of cloud computing, it seems like it is a trend to move ERP system to the cloud.
What are the reasons drive this trend?
- Achieving faster time-to-market: traditional ERP takes to reach the market; however, cloud ERP system saves the time of building server.
- Legacy ERP systems lack scalability to support 21rst century compliance: traditional ERP system’s data model cannot support the current global entire operation.
- Mobility: in today’s warehouse, mobile platforms are most often used for material handling, warehouse management, traceability, quality management, logistics and service tracking. Mobility offers real-time information.
- Increasing number of small business: traditional ERP is costly for them.
The disadvantages of traditional ERP system and need of current business lead to the development of cloud ERP
What are the pros and cons of cloud-based ERP system?
Advantages: Access to more latest features, decrease the cost of server and hardware, faster implementation.
Disadvantage: Limited customization, security issue (data are in the vendor’s hand)