What Is Cloud ERP?

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Listen in on the conversations happening at today in the ERP community, and it’s clear that the cloud has transformed how businesses implement and use ERP systems in a short amount of time. The quick transition has left many business leaders asking exactly what is cloud ERP, and is it right for their business.

From “Online” to “Hosted,” “SaaS,” or just simply “Cloud,” cloud ERP goes by many names. Regardless of the name in use, however, these ERP options are all the same: in short, the ERP software you’re using will be delivered to your desktop through an internet connection rather than through a server in your office building.

How Does Cloud ERP Work?

Just a few short years ago, it was commonplace for businesses to install an ERP system, like Microsoft Dynamics, in the business’s physical office space. This so-called “on-premise” installation involved purchasing servers and software licenses, plus the added cost of the actual installation and ongoing maintenance. The business would have to estimate how many  licenses they needed to purchase, and that became a fixed cost (regardless of the actual number of ERP users employed). This on-premise installation of the ERP software also meant that the ERP users could only access the application during working hours from within the confines of the office building.

Cloud ERP turned this model on its head. Because a cloud ERP system is delivered to the users’ desktop through an internet connection, businesses no longer need to purchase or maintain hardware to run their ERP systems from within their office building—a bonus which has saved businesses using the cloud quite a bit of money in operations costs. Similarly, a cloud-based ERP system is more flexible than a traditional on-premise ERP deployment. For example, a business can purchase user licenses that match how many users they have this month and easily add or subtract users they may gain or use in the following month. And, as an added benefit, ERP users are able to access the software from internet connections in their homes or from the road rather than strictly from within the office.

How Is Cloud ERP Purchased?

With cloud ERP, the actual hardware running the ERP system is housed in a data center and provided to a business via a subscription. Think of cloud ERP as the Netflix of the business world—you pay for a month-to-month subscription, and in return, your Microsoft Partner and/or cloud provider will handle the logistics of hardware, maintenance, uptime, and support. With cloud ERP, all you have to do is log in via your browser.

Ready for Cloud ERP? Find a Netsuite, Dynamics, Acumatica, Intacct, SAP ERP Cloud Partner 

By ERP Cloud Blog Editors, www.erpsoftwareblog.com/cloud

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