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Why businesses should move their ERP to the cloud?

A traditional ERP solution takes a lot of time to install, update and manage which is further increased by the lack of an automated provisioning process. With on-premise ERP systems, businesses can expect to spend millions of dollars on hardware upgrades. Unfortunately, these investments will increase outlay noticeably at year-end with an upgrade. As changes are made elsewhere in the system, old outdated technological requirements begin to change. This may be difficult for firms that do not want their IT systems spread across multiple platforms.

The solution is simple – move your business ERP to the cloud. All cloud packages are built using the same common architecture platform that ensures you will be able to seamlessly integrate new software components into your existing enterprise-wide system without any glitches or errors. A cloud-based ERP not only provides a better user interface and 24/7 access to reports and data but also makes it easy for companies to connect every other department to the system thus maximizing efficiency and saving costs. This way you will never have to worry about your data being lost or corrupted, nor will you ever have to worry about investing in unnecessary upgrades. The benefits of migrating your ERP system to the cloud are endless. Not only would it help you achieve total control of your business operations but also help in realizing better profits and stronger revenues.


Agreed, cloud ERP systems do certainly come at a higher price than their on-premise counterparts. But businesses need to realize that the actual cost of purchase is rarely the set price they pay. They must take into account the higher costs of purchase and maintenance over the lifetime of the software. Chances are when it comes to such ERP systems, you would need to enter into agreements with multiple vendors in order to ensure compatibility among your internal and external applications. This can increase your operational costs considerably.


For businesses, the question is whether the benefits of cloud ERP outweigh the costs. There are, however, several compelling reasons to move your ERP to the cloud.

  • 1. Reduced Downtime - One of the key factors for the success of any business is ensuring the uninterrupted availability of its software. Cloud-based ERP services have matured in their ability to provide reliable and robust services. Such systems can be scaled up or down easily, minimizing downtime. In addition, the service provider has more control over the system and can quickly resolve any issues rather than relying on an in-house IT team.

  • 2. Cost Optimization - A big advantage of a cloud-based ERP solution is it ensures cost optimization. The service provider manages the system, so it avoids investing in costly hardware, software, and regulatory compliance. Businesses that migrate their systems to the cloud can reduce the costs significantly.

  • 3. Scalability - Scalability is a key feature of cloud-based ERP solutions. Such solutions are flexible and can be scaled up or down as needed. Businesses can shift the storage to more servers, storage, or add new servers or storage depending on their requirements.

4. Continuance - Businesses that have a presence in multiple locations can leverage cloud-based ERP solutions. They can ensure the availability of systems in multiple locations, ensuring that no customer gets affected because of any downtime.

Take a look at the comparison chart below to see how on-premise and cloud solutions compare on some important aspects. This will help you figure out which one is best suited for your company's needs.

On-premise ERP

Cloud ERP
Upfront cost is higher
Low upfront cost and predictable over time
Implementation Time
Implementation is quite longer especially if there are many customizations
14 days to go live
Software upgrade
Requires full time IT administrator
Routine software updates are managed by vendor
On-premise systems have restricted remote access and often you are unable to manage business operations when away from your office premises
Data stored in these systems can be accessed anytime and from anywhere through any device with an internet connection

Contact us today to learn more about your options for migrating your current ERP system to the cloud.

Ranjith Savarakodi


Ranjith Savarakodi is a digital marketer cum content creator and technology enthusiast. Passion for cutting-edge technology and love of content creation. While not writing about technology and ERPs for us, he loves reading books.

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