Businesses searching for ways to improve their use of ERP and other critical business software (such as CRM and BI) may want to look to the cloud. A recent ERP Cloud News report stated that ERP solutions are more capable and beneficial when leveraged with cloud computing and hosted applications.
The news provider highlighted a chart that emphasized the advantages of cloud ERP compared to traditional deployments. With a cloud infrastructure in place, organizations can scale their operations more effectively, utilize the technology’s pay-as-you-go service model and lower overall operating costs.
With a cloud infrastructure and supporting applications, companies can also improve department collaboration, implement IT services more quickly, integrate different platforms and access their apps from anywhere.
Once companies have a cloud system in place, it is important for frequent and infrequent users to become familiar with the technology. This will ensure businesses identify the advantages and value of their deployments. The more workers who participate with the cloud, more benefits will come to fruition.
Subscription-based pricing impacting traditional ERP
The pay-as-you-go model is expected to be more prevalent for companies looking for ways to lower their IT expenditures, including when it comes to their ERP solutions. More businesses have hit roadblocks regarding how they operate and this subscription approach will be essential for many organizations moving forward.
Today companies are faced with a different ERP challenge than years before; they must figure out how to adapt systems for a new economy where flexibility is critical to business competitiveness and where people are moving to subscriptions rather than up-front purchases.
Although industry experts have praised the cloud for its wide range of advantages, especially in terms of ERP solutions, companies have been slow to adopt the technology. A recent report indicated that Software-as-a-Service-based ERP may hold the key in accelerating the migration toward the cloud.
Large businesses, in particular, will be major consumers of SaaS and cloud-based solutions because these organizations have been using older systems launched in the 1990s. Many of these companies are in need of an upgrade, making the cloud a distinct option.
As more businesses look to upgrade from older IT deployments and search for solutions that are more cost-effective, SaaS and cloud-based ERP options will become even more popular among businesses.