How is cloud computing affecting the ERP game?

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The global ERP software market is projected to reach $78.40 billion by 2026, growing at a CAGR of 10.2% from 2019 to 2026. Advanced ERP systems leveraging newer technology such as AI, IoT, and ML allow users to customize the software to their needs while providing more accurate data. While the top reasons to implement ERP are efficiency and cost advantage, businesses are overwhelmed with all the available choices. To successfully implement ERP, businesses must focus on four areas: user training, cost, proper alignment of system requirements, and change management. According to Selecthub, 88% of companies have reported that an ERP implementation helped them succeed.

ERP implementation is driven by cloud technology.

A cloud ERP is essentially a Software as a Service (SaaS) that enables users to access ERPs virtually. As Hubspot reported, 14% of organizations moved from legacy systems to advanced ERPs, 62.7% of businesses select cloud-based ERP systems instead of on-premise software for their affordability, ease of installation, and minimal IT infrastructure. Unlike the traditional on-premises systems, cloud-based software is transforming rapidly and helping organizations boost efficiency and offer quicker data recovery. Some of the most prominent players in the cloud ERPs market include Microsoft Dynamics 365 Suite, SAP Business By Design, and NetSuite.

Benefits of cloud-based ERP 

ERP solutions have significantly matured and expanded to support most business functions, from back-end processes to front-office operations. Cloud-based ERPs are becoming increasingly popular for their simplified deployment procedure, host of new functionalities readily available, need for minimal IT resources, all the while accommodating business growth and expansion. As more and more businesses focus on remote work in recent times, some of the benefits should be considered while deciding to adopt cloud-based ERP.

Reduced Operating Costs

As cloud ERP eliminates the cost associated with hosting, maintenance, software update, and other infrastructural necessities, cloud-based ERP has reported reduced operational costs by 23% and administrative expenses by 22%. Businesses on a tight budget can choose monthly or annual subscriptions from vendors instead of spending hefty upfront costs towards setting up on-premises servers. To learn more about the Total Cost of Ownership (TCO) of transitioning your ERP to the Cloud, read our blog.

Scalability and flexibility

Cloud-based ERPs are scalable and flexible than traditional on-premises solutions as they can quickly adapt to fit the constantly changing needs of the business. ERP solutions are evolving to adopt new business requirements by providing on-the-go access to critical business data, allowing employees across locations to conduct different front-end and back-end tasks no matter where they are. These solutions also make adding or removing users seamless to suit the organization's staffing requirements without affecting the monthly subscription fee.

Automatic software updates

One of the promising benefits of migrating to the cloud is the software upgrades. The unique architecture of the cloud software allows businesses to maintain previously implemented customizations and integrations and automatically carries them forward when the solution is updated without any additional investment or hassle.

Efficient system performance

One of the promising advantages of moving to cloud ERPs is overall system performance with minimal downtime. Cloud-based ERPs also offer optimized performance that can adapt to the needs of the business. For example, NetSuite commits to its customers 99.5% availability and has an average of 99.98% uptime performance. This uptime performance information is available on their website.

Unparalleled data accessibility

Cloud-based ERP solutions offer access to your data. Reportedly, 95% of businesses witnessed improved collaboration and centralized enterprise data upon cloud-based ERP implementation. As the data readily available on the cloud, authorized associates can use company laptops, smartphones, and tablet devices remotely to retrieve data —all without the extra setup fees and costs.


Cloud-based ERP offers significant security benefits. This cloud-based software has robust security, disaster recovery, and backup procedures that ensure data protection and privacy. NetSuite and Microsoft Azure are leading the market for their security offering with industry-standard data security certifications such as compliance with SAS 70 and PCI DSS.

The benefits of hosting your ERP on the Cloud are clearly highlighted in the below image.

Korcomptenz for cloud-ERP implementation 

Korcomptenz is Microsoft Cloud Services Partner and can help businesses configure, migrate and support cloud infrastructure for all critical business applications. Engage KORCOMPTENZ for a complimentary consultation to efficiently understand how to leverage cloud computing and cloud ERP power.


2 thoughts on “How is cloud computing affecting the ERP game?”

  1. Thank you so much for providing all of this great information. It will help Businesses to understand how cloud computing can be so effective to ERP.

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