Benefits of Cloud ERP

Upfront infrastructure and operating costs

One of the biggest advantages of cloud-based ERP is overall reduction in cost which begins from reduction in implementation cost. When an organization is implementing on-premises ERP an organization will have upfront costs like purchasing servers, database creation, initial implementation, consultants, IT staffing, security and backup.

while companies with on-premises ERP will have to deal with costs for maintenance, upgrades and updates and IT support cloud-based ERP users will be free from all the burden as the service provider will host and manage the software on its own servers. Also when the company grows adding additional servers going to be challenging on premises while cloud-based ERP users will be taken care by the service provider

Security, compliance and disaster recovery

Breaking the taboo of relying on an external service provider is not safe when it comes to storing sensitive information of an organization. As cloud-based ERP typically offers enterprise-grade security and encryption of data between the service provider and the organization. Also it provides better security and compliance than companies could otherwise afford.

Further an organization can remain confident that their data is always backed up and secured with planned and practiced disaster recovery procedures.

Storage resilience and access

During a hardware failure of on-premises ERP software an organization will have to pay considerable amounts of money and time transferring data to a new storage system where as cloud-based ERP data is stored in service provider’s data centers redundantly and geographically dispersed it will benefit the users to access to business information and data over the internet form any geographical location and from any device.

Implementation speed

An organization with a cloud-based ERP system can typically get up and running faster than the on-premises as it eliminates the need of selecting and setting up hardware or hiring and training of IT staff. This will directly affect an organization’s downtime and time to value. And most importantly according to a study it was found that about half of organizations admitted that their implementations finished in the projected time.


Cloud-based users have the ease of access to business information in real time from any geolocation on any device with an internet connection. This enables the organization to make decisions faster and more confidently as the employees across the organization are working with the same data. 


Companies whose goal is to thrive across the industry will be benefited by the cloud-based ERP as it welcomes expansion by allowing organizations to buy new units faster online as the need emerges. Initially an organization can start with the basic, core functional modules and add more as needed without having to add more hardware.

And the need to add more servers in the same location or different locations as the business grows will be eliminated as the cloud service providers typically own data centers around the world and they will help the organizations by storing data in different locations and will provide a more reliable and better service which most businesses would not be able to manage themselves.

Customizations and agility

Cloud-based ERP welcomes customizations to fit different business needs from start or over the time business evolves. Even though on-premises ERP software can be customized, the customizations are bound to current software and will face difficulties when reimplementing with upgraded versions. Because of this issue most of the on-premises ERP systems will refuse upgrading and continue running with outdated technology.

An amazing fact about cloud ERP systems is that they tend to integrate with other cloud based products. Also new modules can be added to the system without any down time or additional hardware. Finally, the organization will be able to adjust to industry changes, consumer trends and to be aware of unforeseen circumstances and more.


Cloud ERP users can keep up with the most up-to-date technology as the service providers manage all the system upgrades and updates on an ongoing basis.Where as upgrading on premise ERP software may even require hiring of contractors to manage the process. And these updates can take as little as 30 minutes or will occur during off hours to prevent business disruptions.

Business Value of ERP