Whether you are a small business with growing pains from your basic accounting package, or are a medium sized business tired of the rigidity of your ERP system Cloud ERP is perfect for your business.
Whilst we understand any changes to your accounting system or ERP system is a daunting process, cloud technology radically minimises any of the associated difficulties whilst keeping time and cost at a minimum.
Cloud based ERP (often referred to as hosted or SaaS) provides all of the same benefits as on premise ERP with the added benefit of predictable fees, remote access and much reduced IT and hardware costs.
Below are 5 reasons why cloud ERP is perfect for SME’s
1. No IT Department Necessary
Because your ERP system is hosted in the cloud (preferably by the vendor) you have no need to have an IT department to manage it. Instead you can rely on the supplier of the software to maintain the system and ensure it runs smoothly.
2. No More Time Consuming & Expensive Upgrades
The beauty of most Cloud based ERP systems is that they no longer rely on heavy software upgrades to keep the systems current. Instead lighter updates take place automatically or with your approval to the vendor. This massively reduces the cost of maintaining an ERP system and removes the hassle involved also.
3. Infrastructure Costs are Pushed to the Provider
With cloud ERP software, the vendor installs and hosts the software on their own servers and takes responsibility for purchasing and maintaining all hardware needs. The customer does not have to worry about having up-to-date equipment or the physical storage space necessary to house it all. This helps to further reduce the costs for start-ups in terms of both initial investment and on-going hardware maintenance.
4. Predictable, Monthly Costs
One of the biggest differences between a SaaS and on-premises software system is the cost structure. With an on-premises solution, you’re paying a larger upfront investment as you’re purchasing the software licenses and paying for the implementation all at once. For SaaS applications, you pay the same implementation costs but the software licenses are paid for on an on-going monthly basis – you’re essentially leasing the software from the vendor as opposed to buying the licenses outright. This means that you’re responsible for paying on-going, predictable, monthly fees which makes it easier to budget costs and works to help improve cash flow.
5. Ability to Quickly Add New Individual Users
SME’s need a software system in place that will help them grow quickly. With cloud ERP applications, businesses can slowly add individual users onto the system very easily one user at a time. A set “cost per user” will get added to the monthly fees each time someone new is added. This set cost makes it easier to budget for new hires.
Although there is no right answer when it comes to choosing between an on-premises and cloud-based ERP system, there are many benefits to choosing the cloud as an SME. Aside from lower costs, the cloud requires less resources and personnel to manage. Make sure you spend time reviewing both options to find the one that is best for your business.