Cloud-based ERP Implementation Rising Rapidly

January 3, 2013

Enterprise resource planning (ERP) systems were once considered to be a dying technology, but the sector has bounced back strongly. Cloud computing likely played a major role in ERP's revival.

"ERP got off to a slow start in terms of adopting cloud technologies," Derek Singleton, ERP analyst at Software Advice, recently told Enterprise Apps Today. "But now everyone is trying to figure out how to design and develop their ERP software for the cloud."

Cloud-based ERP implementation has rapidly emerged in popularity for a variety of reasons, among which includes the lower costs. According to a recent CIO Magazine report, implementing an ERP system, rather than the technology itself, requires the most time and money for companies – particularly when training and poor project management are factored into the equation.

Cloud-based ERP solutions offer a cheaper alternative. In addition to lower initial costs, cloud computing applications are more scalable and can be upgraded based on a company's needs.

Flexibility is another benefit of cloud-based ERP implementation. Clive Longbottom, senior research analyst at Quocirca, told the news source that when an organizations uses 80 percent of a cloud computing package, it can "drop the 20 percent and plug in someone else's functions instead."