It’s no surprise that cloud-based enterprise resource planning (ERP) solution implementations are on the rise. A recent survey shows that more than 50% of organizations looking to buy an ERP solution in 2016 plan to go with a . There are two important factors contributing to the rise in cloud-based ERP implementations – better security and innovation.
Better Security in the Cloud
One reason more companies are looking toward cloud ERP is better security. The Resource Group has been doing ERP implementations for more than 28 years, and most of these have been on premise. Many companies are still concerned with the security of having their data in the cloud. They have a false sense of security in regards to the safety of keeping their data on internal systems.
What many don’t realize is that SaaS cloud-based ERP vendors have a team of IT professionals who specialize in security. Because of their business model, they can’t afford to have a security breach. When it comes to security, how well informed is your internal IT team or outsourced company? A good question to ask them is when was the last time your internal infrastructure passed an SSAE 16 audit, and see what they say.
Innovation
Another reason to consider is the ability for vendors to deliver innovation to you quickly and often. Because cloud vendors only have one code base to support, they can dedicate the necessary resources to an update. Their team can dedicate the needed man-hours for design, code, test and release of that update.
On-premise vendors more than likely are having to provide support for the most recent ERP update as well as two or three versions back. This means that only a portion of their man hours can be spent toward new features and functionality.
In addition, on-premise solutions require a manual process update. More than likely, an update will be needed for an on-premise solution every one, two, three or more years. Some companies choose to not move off of the original system they have in place. This means that even if the vendor is innovating, these companies may not be taking advantage of new features and functionality.
Learn more about how cloud-based ERP solutions might work for your organization, a partner like The Resource Group or visit .
by Marty Schillaci, The Resource Group
