How is cloud ERP software different from a traditional ERP, it’s a great question that we hear often. Perhaps, you are just upgrading from an entry level accounting system to your first ERP. You may find yourself feeling overwhelmed by all the options that are available to you. But that’s okay, I'm going to do my best to clear up any confusion you might have about what makes a modern cloud ERP different than a traditional one.
Put simply, traditional ERPs are generally housed on your own servers and maintained by your IT staff, or an outside consultant. They require regular updates and investments in the hardware needed to run them. Cloud ERP software packages on the other hand, are housed, surprise, surprise, in the cloud (inside a data center, on a server owned by someone else, usually the ERP vendor) and accessed by you (the user) via an Internet connection. With cloud ERP software there is no hardware to buy and updates are generally done automatically for you by the ERP vendor.
Signs that your business would benefit from modern, cloud ERP software
- You use multiple systems to manage your business and they do not talk to one another. Thus, your staff is required to reenter data across systems. This is not only a waste of time, but also dangerous because it can lead to decisions being made based upon incorrect and/or incomplete data.
- Sharing information across departments is difficult and/or time-consuming. If each functional area of your business uses a separate system to manage itself, chances are passing information back and forth is not very easy. For example, you may have to pull a report out of your department’s system, format it into a file type that can easily be consumed by your coworker in another department, and then email the reformatted file to them.
- Because you are using multiple software products to manage your business, there always seems to be something that needs to be updated, a new user interface or feature set for you to learn. And, this constant state of upheaval is not only frustrating, but is also hurting productivity.
- Your maintenance and user license costs are ever increasing. As your business grows, it’s natural to want to give more users access to your business management systems. However, if you are being charged on a per user basis for these licenses, your costs can quickly spiral out of control.
But, by moving to a cloud ERP, you can free yourself from all these struggles. They offer a few things traditional ERP’s or entry level accounting packages cannot:
- Instant updates across all systems.
- A single version of the truth.
- Improved productivity.
- Fewer maintenance headaches.
- Anytime, anywhere access
Think that a cloud ERP might be just what the doctor ordered? Acumatica is an extremely popular option that you owe it to yourself to consider. They have a brief recorded webinar that will take you through a more detailed discussion of how cloud ERP software differs from traditional options, and gives you a quick demo of their full-featured, user friendly cloud ERP solution.
Want to explore Acumatica in even greater detail?
By: Laura (Heinbockel) Schomaker, Intelligent Technologies Inc., a North Carolina Acumatica, and Microsoft partner
1 thought on “What’s the Difference between Traditional ERPs And Modern Cloud ERP Software?”
I read your blog for years and I got very useful information about ERP Software. Keep sharing unique information about ERP and help businesses to grow.