Because cloud solutions have been used to run ERP applications for some time now, the industry has access to documented results of the benefits.
One example is from the report “Improve your Midmarket Business Operations with Cloud Applications” by the Aberdeen Group:
The benefits of the Cloud provide tangible business benefits in operating costs, schedule compliance, and on-time delivery”. Aberdeen reported that the average improvement of profitability over the past two years for midmarket companies that are not in the Cloud was 9% profitability improvement. However, midmarket companies who were Cloud-enabled reported a 17% improvement in profitability over the past two years. This is a staggering 8 point difference. By providing the technology tools their people needed, these market leaders saw an ROI that improved their overall bottom line.
Also in that report they wrote about integration with other technologies:
“For midmarket organizations, the flexibility that cloud environments provide actually enables these organizations to implement more technology that can improve processes across the organization. Results include
- 13% more likely to have Customer Relationship Management
- 43% more likely to have Business Analytics”
Finally, they touched on one of the most important areas for a small or mid-sized business, keeping track of business activities and visibility across the organization:
“Since a cloud solution is accessible to employees no matter where they are, it is easier to share the functionality included in the solutions. Ultimately, this improves visibility, impacts collaboration, and enables efficiency and agility. In fact, midmarket organizations with cloud solutions are
- 41% more likely to have real-time visibility in to the status of all processes
- 47% more likely to have automated notifications empowering business leaders to react immediately”
Improvements will be made in a company whether they have cloud ERP or traditional systems; however, cloud implementations result in significant ROI improvements over on-premises ERP systems. A few examples include:
- 8% improvement in operational costs as a result of cloud ERP
- 8% improvement in profitability as a result of cloud ERP
Get the details of the benefits listed in the Aberdeen Group “Improve Your Midmarket Business Operations with Cloud Applications” report and read how others have realized significant results with Cloud Computing.