Home The Benefits of Cloud ERP for Businesses

The Benefits of Cloud ERP for Businesses

From global access and real-time insights to lower operating costs and built-in scalability, the many benefits of Cloud ERP positively impact the entire business.
How to choose the right Cloud ERP solution for your business

Why You Should Implement a Cloud ERP Solution?

Small and midsized businesses (SMBs) are no strangers to a competitive marketplace and a turbulent economy. These circumstances ebb and flow in severity, but they consistently add layers of operational complexity that negatively impact your efforts to improve performance, boost efficiencies, and increase profitability—unless you implement a cloud-based ERP solution. The right cloud ERP solution automates and streamlines your critical business functions and acts as a central repository of your business-wide data, providing you and your team with a “single source of truth.”

As internal and external challenges inevitably arise, a cloud ERP solution is the tool that can help you overcome each one. But perhaps you’re wondering why a cloud ERP solution is the best choice for SMBs and not an on-premises solution.

Let’s examine the differences between on-premises and cloud ERP solutions—and the benefits of cloud ERP—to find out why.

What are the Differences Between On-Premises and Cloud ERP Solutions?

An ERP (short for “enterprise resource planning”) solution connects a company’s departments and acts as a single, centralized database. Data from sales, accounting, marketing, HR, and more streams into the ERP solution, and authorized users have access to the synchronized and accurate information. Such data sharing aids in the successful completion of tasks and in the making of strategic business decisions. This is true whether the ERP is implemented on-premises or in the cloud, but that’s where the similarities end.

With an on-premises solution, companies pay for the ERP software, the license to use the software, and the hardware upon which it runs. The hardware is installed on-premises—hence, the name—and must be configured for compatibility with existing technology. Expert IT technicians, who implement the ERP solution across the organization, will also be tasked with its upkeep. This includes performing routine maintenance, replacing aging and/or defective parts, regularly updating the software, and executing vital security measures. The effort and expense to maintain an on-premises solution adds up over the years.

In contrast, cloud ERP solutions are affordable and easy-to-use from the outset. The cloud ERP vendor manages the hardware in an offsite data center and offers the solution via the internet. Once the software is available, every user can remotely access the software with any web-enabled device at any time and from anywhere, which ensures businesses have ongoing, all-time functionality. Additionally, upgrades, upkeep, and security needs are the vendor’s responsibility.

Amanda Datte
"When we switched to Acumatica, it really created a seamless experience for our consumer, because our data accuracy, our inventory, and the way we communicated with our customers was in one spot and created a single source of truth."
Amanda Datte, CFO
Clive Coffee

What are the Benefits of Cloud ERP Solutions?

Clearly, significant differences exist between on-premises and cloud ERP systems, and these differences point to cloud ERP for business advantages. These advantages include:

  • Global Access and Enterprise-Level Security: As noted, a cloud ERP solution provides businesses with unparalleled, 24/7 access to their data. Employees working from home, in the office, on the road, or in varying locations can input and extract data in real time using any connected mobile device. The information they see is the same information their co-workers see, which encourages and enhances company-wide communication and collaboration. And employees—regardless of where they are or when they access the system—enjoy enterprise-level data security provided by the cloud ERP vendor and the third-party hosting platform (e.g., Amazon Web Services (AWS)) the vendor uses. Constant monitoring, repeated testing, and automatic updates by the vendor and the hosting platform counteract the onslaught of cyberattacks businesses deal with every day.
  • Real-Time Insights and Analytics: Having access to real-time and secure data is an important example of the benefits of cloud ERP solutions. But cloud ERP solutions can take it a step further by leveraging sophisticated business intelligence tools, such as Microsoft Power BI, as a way to analyze a business’ raw data and combine it with external data sources in order to spot trends, identify inefficiencies, and grow the business.
  • Bringing Down the Cost of Operation: Many SMBs underestimate the cost of an on-premises ERP solution. Investing in and installing hardware on private, company-owned servers is expensive, and it’s likely the installation will require upgrading the SMB’s current infrastructure, causing costs to skyrocket. And if the SMB’s IT department does not have the expertise required for installing, implementing, and maintaining the on-premises solution, then add hiring and training new IT staff members to the price. With a cloud ERP solution, the software and hardware requirements are managed solely by the ERP vendor and the cost is covered by the subscription fee, bringing down the cost of operation substantially.
  • Built-In Scalability: Scalability, according to the Gartner Glossary, “is the measure of a system’s ability to increase or decrease in performance and cost in response to changes in application and system processing demands.” It goes on to note that “demands” encompass an increase or decrease in the number of users and queries as well as how an operating system “performs on different classes of hardware.” Unfortunately, on-premises systems are fairly static, meaning they require users to purchase additional equipment—which will require ongoing maintenance—to handle their continually changing needs. This is not the case with cloud ERP for business. A cloud ERP solution allows SMBs to easily and quickly scale up or down without purchasing/installing new hardware and without new software licenses.

Acumatica’s Cloud ERP Solution

As you consider all of the benefits of cloud ERP solutions, it’s important to recognize that cloud ERP solutions vary in their product offerings and support. Before making an ERP selection, you’ll want to thoroughly research your options, and at Acumatica, we welcome any questions about our award-winning cloud ERP for business solution.

How to choose the right Cloud ERP solution for your business

Born in the cloud and resting on a versatile, future-proof platform, Acumatica provides customers with both industry-specific editions (e.g., Manufacturing, Construction, Distribution, General Business, and Retail-Commerce) and best-in-class modules (e.g., Financial Management, Project Accounting, Customer Management, Field Service Management, Payroll, and Property Management) that seamlessly integrate with each other and with third-party applications. Our solution can be easily tailored to meet the needs of growing companies and offers an intuitive, award-winning UI.

And unlike most cloud ERP solutions, we offer our customers a unique pricing model. You pay for the resources you use, not the number of user seats. There is no additional charge for adding or eliminating users.

The benefits of cloud ERP solutions—including growth-friendly costs, a universal platform, constant access, enterprise-level security, and powerful business intelligence tools, and so much more—are delivered by Acumatica’s cloud ERP software. We provide phenomenal value for growing SMBs in today’s digital economy.

To learn more about why you should implement a cloud ERP solution, contact our experts today.

“We use Acumatica without changing our business processes. It’s truly our system of record, our system of truth.”

Yuri Dorovskikh, IT Manager, OFS International LLC

See what’s possible when you have a future-proof ERP platform that truly puts customers first.

Request a demo