Are The Answers to Your Company’s Problems in the Clouds?

The traditional ERP system is not for the faint of heart. While there have been many advances, ERP is still a very complex business solution that can entail hiring a professional IT staff and purchasing expensive hardware and software. Moving small and medium-sized businesses to a cloud ERP solution could not only be more productive but more cost effective.

Traditional ERP Offerings Before Cloud ERP

From its inception, ERP systems have been difficult to apply, especially on a large-scale project. Most ERP are opposite of cloud ERP solutions in that re-engineering is heavily involved as a basis of almost every business function during set up. But, if done properly, even traditional systems give operations years of quality existence.

Other Options Besides Cloud ERP

There are many ERP options out there for businesses to consider and the cloud ERP is only one of them. Cloud ERP can have its downside such as potential security issues and vendor servers that can’t meet demand, causing companies to consider other options.  Software as a Service is one of those options.  Like cloud ERP, Software as a Service is growing in popularity amongst the business community. SaaS, too, has become a staple in the infrastructure and has come a long way to becoming mainstream.

It Makes Sense That Cloud ERP Would be the Next Step

Many small to mid-sized organizations are looking into a cloud-based ERP. The benefits to a cloud ERP are cost effectiveness, positive alignment in regards to technology and business needs, scalability, deployment ease and management, seamless upgrades, remote accessibility and reliability.

So What Exactly is Cloud ERP?

Traditionally, businesses would purchase and operate their systems in house. From the installation of software to the servers and licensing, the whole concept was tedious. Utilizing a cloud ERP, most of these steps are eliminated. Businesses are given the freedom to connect between various software applications. These points of access allow users to tap into servers, software and data centers. These same concepts fit into a SaaS solution as well.

The Outlook for Cloud ERP

In an uncertain economy, businesses are looking to find stability and a cloud ERP might just be it. A cloud-based ERP solution currently occupies about 2 percent of the market, but according to Forrester Research, cloud ERP is set to grow to 21 percent through 2015. During this same time period, another research company reported the cloud ERP market will reach $40 billion. By providing automated processes that can be upgraded and changed at the drop of a hat, is what most businesses are looking for in an unknown environment.

Costs Associated with Cloud ERP and Traditional ERP

Who isn’t looking to save a buck? As the economy struggles to make a comeback, businesses are looking to save money in every department, including IT. In a search for cost effective implementation of ERP, most businesses have found a success story in cloud-based hosting. The systems are flexible, adaptive, cost effective and secure. Moving away from traditional installation of expensive software and hardware makes cloud ERP or SaaS a more feasible option. Instead of upfront costs associated with those systems, cloud ERP gives businesses the ability to pay a monthly subscription for services.

Who is Making the Switch to a Cloud ERP?

The cloud ERP market is about to explode. Large companies like Groupon and Knowledge Universe are already making the switch to this advanced cloud ERP solution. NetSuite has obviously targeted companies with more than 1,000 seats and are growing. This particular vendor plans to implement the cloud ERP system for Groupon in 26 countries this year.

The Storm in Cloud ERP

Bigger fish are starting to catch on to the successes of cloud ERP. However, many are taking a different approach and utilizing a SaaS solution. The two could become neck and neck within the market and could create more questions on the legitimacy of an effective cloud ERP system.