Why Cloud ERP Is Worth It (Even Though It's More Expensive)

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There are a lot of reasons to embrace cloud-based ERP. It’s scalable. It’s secure. It’s accessible. But is it more affordable? Most customers are surprised to learn that, over the long term, the answer is no. Sure, you don’t need to buy a server, but you’ll be paying for licenses for as long as you use the system.

So, if it costs more, why is everyone pushing you in this direction?

A speaker, Mark Stuyt, made a very good analogy at a seminar I attended a while ago that I want to share with you. He said, “The evolution of business software to the cloud is a lot like the evolution of planning a kid’s birthday party.”

Wait, what?

In the old days, the only option for the average birthday party would be for Mom to bake the cake from scratch, make and send invitations, plan some activities (and wrangle the kids into them) and then clean it all up at the end. It was a huge undertaking and it put all the pressure on the one person in the house who probably didn’t need more on her plate. But, it was relatively inexpensive and the kids all had a great time.

Fast-forward a couple of years and cake mixes show up on store shelves. They were a little more expensive than baking from scratch, but the time they saved was worth it. Then, supermarkets started stocking pre-made cakes. Again, a little more expensive but saved even more time.

Today, some parents have taken things a step further. Why mess up the house when you can just drop the kids off at the Party Zone and let the staff deal with feeding, entertaining and cleaning up after a horde of rowdy kids. This costs considerably more than baking the cake from scratch at home, but parents are embracing it because of the convenience and the time savings.

Moving to the cloud is very similar. With the rapid changes in technology today, staying current with an on premise solution can be expensive, not just monetarily, but also productivity wise, dealing with the downtime that is often necessary for upgrades.

The cloud can cost more over the long term, but it is a known, fixed cost that can be budgeted for. It provides users the convenience of accessing data anytime, anywhere. The cloud is always current and remains current with no downtime. Moving to the cloud frees up your time and resources to focus on making money, as opposed to managing costs.

- Cody Pierson, Prophet Business Group, Dynamics GP, Dynamics CRM and IT Support

1 thought on “Why Cloud ERP Is Worth It (Even Though It's More Expensive)”

  1. Hello Cody,

    I like the way you define Cloud-based ERP is worth it. Especially you used the example of a birthday party for same is just awesome. I agree with that cloud-based ERP is scalable & secure but somehow it's costly also.

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