What Are The Benefits of ERP in Cloud Deployment?
Cloud deployment has taken the business world by storm. It makes the use of the internet for operation management, accounting and reporting among the members of a particular company.
There are four types of cloud deployment methods. The public cloud is where the entire computing infrastructure is on the setup of the cloud computing company that offers the service. There are two types of ERP : the on-premise ERP and the cloud-based ERP. On-premise ERP is where the software is stored on your computer’s hardware while in a cloud-based ERP the software is stored on the internet and is provided by an ERP vendor. It is accessed by using the web browser.
The cloud deployment can either be an infrastructure, software or a place of storage and platform for interaction. This data is more prone to virus attacks and hacking. The second type is the private cloud which the client (company) operates. It is a paid service and the data isn’t shared with any other company client. This costs more than public cloud because of the higher security provided. The third is the hybrid cloud which is a combination of the public and private cloud.
This is the most used type of cloud as the public aspect can be used to interact with clients while the private cloud secures the company’s information. The fourth one is the community cloud which is a shared cloud between different companies or organisations for sharing data and to help in data management.
The future of cloud-based ERP in the business world is bright. A recently published data by Forbes forecasts an increased adoption of ERP in the next five to ten years. ERP or enterprise resource planning has made every task ranging from customer relationship management to supply chain management very easy and controllable.Cloud’s cost efficiency enables companies to implement traditional on-premise integration and security.
Though, this demands more efforts and patience from the IT department maintaining the complexities of the company has become easy and convenient. The usual higher costs of hiring an IT person are reduced due to the entry of cloud deployment. Due to the high functionality of the cloud applications, it is easier to roll out new innovations. Customisation is not available on the cloud which leads to the generation of new software. There are several standard applications already available on the cloud such as analytics, collaboration tools, and mobile support.
This makes hosting the clientele on one platform easy and hassle-free. Without a proper platform to cater to the ever growing client base or hosting the client profiles on a computer’s limited data storing ability and speeds, slows down the entire process which in turn reduces the productivity of the company. ERP cloud applications work rapidly. This enables business owners to function quickly and act immediately. ERP makes use of Software as a Service application which means that the configuration is less complex. This means that anyone can operate it and a trained professional is not required.
This saves the cost further more. ERP offers a certain degree of choice that means you can choose the services you want and only pay for them. Storing data on cloud-based ERP means no virus attacks. There is also no loss of data as it is stored online, so in the case of any floods, tsunami, cyclone or tornado, the data would remain safe. It also means that you can access the cloud from any geographic location.
On-premise ERP is not cost effective and requires on-going investments and more investment of time and money. When an update it required, the IT professional is required to redeploy the entire software, unlike cloud-based ERP. The software is much more complex and several customisation are required to done unlike the former. Though you can customise your on-premise ERP exactly the way you want, it is linked to your current software and doesn’t get transferred to future updates. Cloud ERP updates automatically adjust to your previous settings.
It can also slow down the computer speed, hamper productivity. In today’s world of fierce competition, handling resources and time is very essential. Cloud-based ERP gets an upper hand keeping these two aspects of the business world in mind.