What is Cloud ERP and How Does it Work?

Setting up an ERP system can be a resource-intensive endeavor. What if your organization could enjoy all the benefits of an ERP system, without the upfront set up costs?

Cloud ERP is a software as a service (SaaS) environment, where organizations will pay a set fee to access software hosted off-site. This means you can optimize everything about ERPs, without as much of the risk or labor involved. It’s very appealing for organizations that want to see cost savings, security, and unparalleled access to their ERP systems, and especially for smaller companies with limited budget and staff resources.

Here’s what you need to know.

Cloud ERP Basics

Cloud ERPs work just like an on-premise system, except they use infrastructure provided and secured by an outside vendor. Instead of procuring hardware and software and then setting it up inside your facility for your staff to manage and maintain, cloud-based ERPs allow you to work with an outside vendor that does all of the work for you and maintains that infrastructure on their site.

You are able to access the data and programs from anywhere, at any time. And, if you find that your organization needs more resources, or needs to cut back, cloud ERP is scalable in either direction.

Advantages of Cloud ERP

Cloud-based ERP software comes with several benefits. First, companies stand to save money by using a SaaS ERP. Maintaining an off-premise ERP means you do not have to make room in your budget for servers, databases, and other infrastructure that is typically required to run this type of system from your location. You also don’t have to worry about increased staffing requirements to handle all of that infrastructure, upgrades, backups, and security.

For smaller businesses with minimal IT staff, or those without an IT department at all, cloud-based ERPs put the responsibility of IT management solely onto the vendor. That’s why it is vital to choose the right ERP vendor for your organization. They will be involved in a critical component of your company’s infrastructure, so you want to choose someone you have a healthy working relationship with and someone who can meet all of your objectives within your budget.  

Choosing a Cloud ERP Vendor

At Decision Resources we know each organization is different, and that ERP systems are not a one-size-fits-all solution. We apply that when assisting our clients in choosing between cloud-based
ERPs and on-premise ERPs. We know that what works for one organization may not work well for another. No matter which option you’re leaning toward, Decision Resources is here with the information, technology, and expertise you need to make your decision, and make your ERP solution a success. For more information about the right ERP solution for your business, contact us via our online contact form, give us a call at 412-562-9660, or email us at info@decision.com.