It can be a toss-up for most businesses to choose between an on-premises or cloud-based ERP system. Why of course reasons remain for choosing either of these options, recently many SMBs (small to medium businesses) have been drawn to a cloud-based solution for a variety of reasons. The biggest difference between the two systems is how they are each deployed. For example, cloud-based software is accessed through a Web browser rather than installed on a company’s own server like on-premises software. The difference between these two types of deployments results in benefits that go beyond just installation. Compared to an on-premises software a cloud based solution allows for faster time to value, reduced upfront costs, and increased mobility & security.
Faster Time to Value
Traditional on-premises implementations can become time consuming and involves significantly more time put into information technology efforts. Consistency throughout the software is much harder to achieve this way and often results in higher costs with a much longer implementation time. By choosing an ERP solution based in the cloud you can eliminate these complexities and rather focus more time and energy on innovation and progress within the business.
Reduced Upfront Costs
Another major difference between an on-premises software and a cloud based software is the pricing. Most the time cloud software is priced monthly whereas on-premises software is usually a one-time license fee with additional recurring fees over tim. This can be a problem for a company that might not hold the assets upright to afford a costly on-premises implementation fee. Cloud-based systems can be considered operating expenditures that a business can factor into the monthly budget consistently.
Increased Mobility & Security
By upgrading to a cloud-based ERP solution your business now has the option to access data on-the-go! As technology progresses businesses are increasing their mobility to stand up to the fierce competition. To keep up with this fast-paced work environment cloud capabilities give employees the tools they need to stay on top of the game. An additional bonus to this mobility is the security of the data and documents you are accessing daily. Talk about productivity and relief all at once!
Although a cloud-based ERP solution is not always the right fit for everyone many businesses have reaped numerous benefits from switching to this new ERP technology. If you think a cloud-based ERP system like Microsoft Dynamics GP or Acumatica Cloud is the right direction for your business