The Top 4 Advantages of Cloud-Based ERP for Small Businesses

The traditional on-premise ERP system has always been slightly out of reach for small businesses. Between the costs to maintain a server and the time it takes to implement it, it simply wasn’t feasible for a majority of small business owners. With the introduction of cloud-based ERP, small businesses are now jumping on the chance to join their large company colleagues.

Cloud-based ERP has opened up a new world available to small businesses. In fact, Panorama reports that small business are now catching up to their Fortune 500 counterparts in the use of ERP. These are the top four reasons so many small businesses are taking advantage of cloud-based ERP.

  1. Reduces Cost

    Whether a small business is implementing ERP for the first time or switching to a cloud solution, the cost is significantly lower. Many cloud-based ERP solutions are offered on a monthly subscription basis, much more cheaply than on-premise solutions. Data analyzed by an industry expert suggest that cloud-based ERP is actually 50 percent cheaper than traditional on-premise. This is taking into account the cost of paying IT to maintain and deploy it, as well as initial fees.

  2. Faster Implementation

    Previously with on-premise ERP solutions, months of planning and IT installing a server and software would drag out the implementation process. With a cloud-based ERP system, all of the information is stored in the cloud and the responsibilities, typically, lie on the vendor. Not only does this make implementation faster, but less stressful too.

  3. Improved Performance

    Without regular upgrades, an ERP system can lose its functionality. System upgrades become much easier in the cloud. On-premise ERP users typically have an IT team that would need to reconfigure the system to allow for the upgrade. This is more feasible in a large corporation that can afford the time and money for their IT to focus on the upgrade. In a small business, maintenance in the cloud is not as difficult.

  4. Improved Accessibility

    With all of the information in the cloud, accessibility becomes one of the greatest features of the ERP system. You are no longer tied down to a location and can access it anywhere with an internet connection.

Each business has different needs and will need a different ERP system to meet them. For some businesses, on-premise ERP is the best solution, whereas other businesses only have the budget for cloud-based ERP. For small businesses, breaking into the ERP market is best done with cloud solutions.

We’ve developed these 8 tips to help navigate the many choices for ERP selection.Learn More Here

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