Cloud-based ERP has many Advantages, Fewer Drawbacks

December 21, 2013

Enterprises resource planning (ERP) systems can save companies a lot of time and money, among other benefits. Cloud computing programs can also be cost-efficient and have been found to enhance worker morale and productivity. Therefore, conventional wisdom suggests that cloud-based ERP implementation can benefit organizations in a variety of ways.

In a recent blog for SmartData Collective, Robert Houdeshell, founder of Strata ERP Cloud Solutions, wrote that to effectively integrate an ERP system with the cloud, companies need to make sure their solutions are scalable to fit their business needs. He said there are three cloud-based ERP strategies – private, public and hybrid – and outlined the benefits of each:

1. Private cloud ERP: This strategy works best in conjunction with legacy systems, which do not contain built-in cloud computing capabilities.

2. Hybrid ERP solutions: By using Software-as-a-Service applications, companies can implement cloud-based ERP programs that are essential for their business needs. Customer relationship management systems, for example, may work best when they operate in the cloud.

3. Public cloud ERP: These systems are based entirely in the cloud. While cloud-based ERP implementation may cost the most time and money, it can be the most beneficial long term.