Cloud-based software is growing quickly in ERP circles. Vendors are increasingly moving their services over to the cloud creating a huge boom in sales. Since cloud ERP is not hosted on premise, but rather the information is stored with the vendor, the cost of cloud applications are exponentially cheaper for small businesses. Gartner expects the cloud ERP market to grow by $17.7 billion in 2016. Even with this huge boom, however, a lot of businesses are still apprehensive about the cloud.
The two major areas that most businesses are worried about cloud ERP is whether it is secure and whether data is safe in the event of a disaster. Some believe that cloud ERP is more vulnerable to attack or that data would be compromised if disaster struck. We’re going to take a closer look at these two misconceptions.
Cloud ERP is secure, however, like any system it isn’t perfect. Studies show that cloud ERP is more secure than the alternative because it makes it more difficult for a malevolent employee to find data in the cloud. To find the most secure cloud ERP options, look for a vendor that deploys the ERP in a global data center. This ensures that they conform to global security standards. Further, it is crucial you find a vendor that takes responsibility for all upgrades, or else you’ll be left behind on old outdated hardware.
The most unique and important function of cloud ERP is the amount of protection to data it provides. Since the application is not hosted on-premise, if something disastrous were to happen to your physical location, your data will not be effected. When looking for a cloud ERP vendor, make sure you find one that uses multiple layers of back up and data centers so that nothing can happen to your information if something disastrous happens to their physical location either.
Using the cloud for applications may not be for every business, but for those who were simply on the fence over security and protection reasons, there simply isn’t a justification to wait anymore. Cloud ERP is more affordable and less hands-on that an on-premise solution, allowing small and mid-sized businesses to join their competition and continue to grow.