Cloud ERP: Where do we go from here?

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Historically, technology leaders have been uneasy about making drastic changes in their IT departments, especially when it comes to financial management systems. However one of the newest business technologies, cloud computing, is becoming more and more popular so Chief Information Officers are taking the time to learn more about the benefits of cloud technology. As their familiarity grows, CIOs won’t be as nervous about transitioning their traditional server setup to the cloud.

Concerns and Investments

When it comes to the cloud, CIOs are most concerned with privacy, security and data integrity. However, most companies actually hesitate in switching to the cloud due to lack of compatibility with legacy systems. In fact, statistics show that the average company only spends about 10% of their IT budget on new technology investments while nearly 90% is spent on maintaining existing infrastructure and applications. In the future, IT departments must properly invest in cloud computing and the multi-tenant aspect of cloud technology offers reduced costs so spending can increase elsewhere.

 Which Cloud?

Companies must choose between the two types of available clouds:  public and private. A public cloud is one where IT resources and equipment are shared by several organizations whereas private clouds are just that:  set up for a single organization with no sharing of cloud resources. Regardless of which cloud you choose for systems such as Microsoft Dynamics GP, you will receive clear benefits over what a traditional datacenter offers. Here are just a few of the benefits offered by both private and public clouds:

  • Lower labor costs
  • Automated management
  • Uniform hardware resources


Ready for Peak Usage

Another advantage of the cloud is capacity regulation. When purchasing new hardware, IT directors often choose equipment that will withstand constant peak usage of the system. However, statistics show that most companies only use about 10-15% of their server capacity which translates into a lot of wasted processing power capacity. The cloud solves this problem by factoring in variations in the industry (such as tax preparations in April and online retail sales on Black Friday), pooling of resources and through built-in capacity buffers. These factors allow cloud providers to level out usage patterns and offset peak usage no matter when it may occur.

 Cloud and Mobility

Yet another benefit of moving to the cloud is the access to systems and data from anywhere at any time. Whether working from home, or connecting via tablet or smartphone, all you need is an Internet signal to stay connected and not a special login to your organizations private network. This can greatly enhance your mobile employees’ ability to stay productive while on the road and always keep in touch with their clients and projects.

 BroadPoint is one of the largest Microsoft Dynamics partners in the mid-Atlantic. We encourage you to download our recent white paper, “35 Questions Every CFO Needs to Ask About ERP in the Cloud” for more information on ERP solutions and the cloud.

by BroadPoint Technologies


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