Why Cloud Computing is the Future for ERP Implementations?

Cloud Service Expert, Union Mercantile Solutions

We are in the midst of a radical change in technology preferences. IDC, a premier global provider of market intelligence, wrote that “Cloud Apps are key to supporting growth of small and medium businesses.” IDC calls the current environment the “IT Industry’s 3rd Platform for Innovation and Growth” and reports that this innovation stage is defined by “an explosion of innovation and value creation on top of the 3rd Platform’s Cloud, Mobile, Social and Big Data/Analytics Foundation.

The Rapid Shift to the Cloud

In 2009, 80% of midmarket companies preferred an Enterprise Resource Planning (ERP) solution installed on-premises, but that has changed drastically.

In the 2014 report “The Pros and Cons of SaaS ERP”, Mint Jutras wrote about the decline in the willingness of companies to consider traditional on-premises deployments. That decline began in 2011, and between 2011 and 2013 that percentage “literally dropped off a cliff”. Most SMB’s are now considering Cloud ERP applications.

The market research firm Aberdeen found that the “Best-in-Class midmarket organizations” representing the top 20% of companies surveyed were over twice as likely to have a cloud ERP solution. Clearly, the top midmarket performers have already made the move to the cloud for their ERP applications.

SMB Group, an analyst firm that specializes in small- and medium-sized businesses, issued a 2016 Report on “The Business-Technology Performance Connection for SMBs”.

Since 2010, the adoption of cloud computing has been on the rise in the SMB space, with more and more businesses seeing it as the most cost-effective, flexible, and fastest way to deploy and support their IT infrastructure and business applications without the need for significant capital investments and staffing increases.

Listen to the recording of a recent webinar as the SMB industry analyst presents the finding of their “The Business-Technology Performance Connection” report.

Business Reasons to Make the Move to Cloud Computing

For many small- and medium-sized businesses, the move to the cloud is done for obvious business reasons—the first one being lower up-front costs.

But another significant benefit is speed to implementation. A 2014 survey by the industry analyst firm Mint Jutras reported that “respondents with SaaS implementations reached their first go-live milestone 19% faster than those with on-premise solutions”. Both of these benefits are possible because cloud computing eliminates the need for purchasing and installing hardware and software.

Other business benefits include:

  • Anywhere, anytime access to information by staff, customers and partners, since all applications are designed to run on mobile devices
  • No staff time required to maintain or upgrade hardware as the company grows
  • Most current functionality is always available since the cloud vendor maintains and updates the software
  • The SaaS cloud vendor will typically have the best security available, a fact which has been verified by the news of data security primarily affecting on-premises systems in large and medium-sized companies
  • Data is safely backed up with a disaster recovery plan
  • True cloud applications are designed with an intuitive user interface to speed time to productivity

Remember, not every ERP Cloud provider is True Cloud and can offer all these benefits.

Content Source: acumatica.com

Image Source: logix-erp.com