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How Cloud ERP Software is Becoming Non-Negotiable to Grow Your Business

Updated: Sep 19, 2023

There are many reasons why the cloud is now the preferred option for businesses implementing enterprise resource planning (ERP) software.  The simple answer is that it’s an affordable way to scale your business through all stages of growth and offer better customer service, but you may not realize the numerous other benefits as well.


In fact, you arguably can’t afford to ignore adopting a cloud-based business management solution any longer. In a climate of booming remote workforces, capacity shortages, and universal supply chain challenges—cloud ERP technology is becoming integral in delivering the efficiency to remain competitive and profitable.


In this blog post, we’ll provide a complete overview of cloud ERP software and share how it delivers value and enables growth through efficiencies, scalability, security, and flexibility, all while maintaining a lower total cost of ownership than its on-premise ERP predecessors.


Then, we’ll provide free resources to help you begin your journey to evaluating the best cloud solution for your business when you are ready to take that next step.


What Is Cloud ERP Software?


Enterprise resource planning (ERP) is a category of software that helps companies manage all of their operations, from finance and accounting to human resources and manufacturing. Traditionally, ERP was deployed on premises, where companies purchased licenses outright, installed the software on their own servers, then operated and maintained the servers and software in-house.


Cloud ERP is the modern model of ERP deployment in which software is hosted by a third-party provider, or “cloud provider,” and easily accessed by employees over the internet. Because cloud ERP software is hosted by a cloud provider, such as Microsoft on Microsoft Azure, it eliminates the need for an organization to maintain on-premise software and servers. This advantage reduces the barrier to entry for growing companies, so SMBs are able to leverage robust ERP solutions previously reserved for the elite, larger mega-corporations.


In addition, there is no need to upgrade or patch existing hardware when technology changes with a cloud ERP solution because all updates are completed automatically by the cloud providers.


Why Cloud ERP Software?


The most distinct advantage of deploying your ERP system in the cloud is its ability to scale quickly and cost-effectively as your company grows. Cloud ERP software solutions, offer a pay-as-you-go model that requires minimal up-front investment and no long-term commitment, allowing you to only pay for the licenses and resources you need.


Scaling with cloud ERP software doesn’t stop at cost control and right-fit licensing; it is also capable of seamlessly expanding integrated industry or process-driven functionality based on initial or emerging needs as your business evolves.


Hosting your ERP system in the cloud gives you access to a single version of the truth so that key business stakeholders across your organization will be able to quickly obtain accurate, controlled data and up-to-date information at all times from any location. Additionally, cloud ERP software solutions contain helpful on-demand reporting and analytics to provide a comprehensive view of your business.


Let’s look at the top benefits your business will reap by embracing the cloud.


7 Advantages of Cloud ERP Software


1) Process Efficiency: Cloud ERP software systems are designed for fast and easy adoption alongside simplifying and automating processes that may have been previously manual, laborious, and error-prone. Where many companies traditionally ran multiple, disconnected systems or kept things in spreadsheets, cloud ERP centralizes everything into a single platform for professional business management in one place.


2) Business Agility: Cloud systems give you the visibility and flexibility to respond quickly to changes in the marketplace or within the business itself when impacted by inventory, resource, and financial opportunities or challenges. By giving resources accurate data at their fingertips and a holistic view of the business, proactive, quick, and profitable decision-making becomes possible.


3) Cost Control: Cloud ERP software solutions are pay-as-you-go, so there is no up-front investment, and you only pay for the licenses your organization needs. Cloud ERP solutions also don’t require the expensive maintenance and management of onsite hardware and servers.


4) Scalability: The ability to easily scale from a small, single location business to multiple locations or even a large multinational company makes cloud ERP software an excellent option for businesses of all sizes with an aim for growth. In addition, cloud solutions offer a modular design that allows you to add integrated features and functionality as your business needs and operations grow.


5) Convenient Access: Cloud ERP systems are available through a web browser so that employees can work from anywhere at any time.


6) Enhanced Collaboration: Cloud ERP solutions deliver collaboration capabilities across your organization, providing access to governed, real-time data from any device or location. This allows for better decision-making and improved communication and coordination between executives, managers, and departments.


7) Security & Reliability: Cloud ERP solutions are reliable and highly secure, with multiple layers of protection from cyber-attacks. In addition, your dedicated cloud ERP software partner can offer disaster recovery plans to ensure your data is always safe and accessible.


Selecting a Cloud ERP for Your Business


Now that you know about some advantages of cloud ERP, it’s essential to understand that not all solutions are created equal. So, when evaluating the many different options, be sure to consider the features and functionality that are most important to your business.


The best cloud ERP software offers a comprehensive and integrated suite of features that can be adapted to your specific needs while also providing the security, reliability, and convenience you need to run your business effectively.

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