Merits of Cloud ERP

Before choosing a new ERP (Enterprise Resource Planning) system, one of the most important things for you to decide is whether you should go for an on-premise ERP or a cloud ERP.

In recent year, a cloud-based ERP system has become quite popular. This is especially true for midsize and small businesses. The key difference between these two forms of ERP solutions is the manner in which they get deployed. An on-premise solution has to be installed on the servers and the computers of a company locally. On the other hand, a cloud-base ERP system is deployed on the servers of the vendor and is accessed via a web browser. “Hybrid” deployments are also offered by some vendors where a cloud ERP system is deployed on the private servers of an organization.

Improved Security

Businesses need not worry about the security of their ERP accounting software as it is the vendor who is responsible for data security. A cloud-based ERP assures of enhanced security as vendors update them continuously as a consequence of less customization. There was a time though when many people thought that storing sensitive data through cloud was a threat against their data security. But they soon started realizing how the vendors of a cloud-based ERP could actually offer a secure environment in a majority of cases.

Higher scalability

The early adaptors of the cloud-based ERP solutions realized that it is a simple task to scale services whole subscribed to the cloud to meet the requirements. When you find growth in your business, it is very easy to just increase the size of your license. This is also true when the case is reversed. When you need to downsize your business or your firm is a seasonal one, you have an easy choice of lowering the license size so that your current requirements are met.

Unlimited support

Since the hardware and software ownership is maintained your Enterprise Resource Planning vendor, you can be assured of getting 24 hour support from them. Contradictory to on-premise deployment where the customers may have to buy support packages at times, vendors of cloud-based ERP solutions usually offer this service as a component of their agreement including software upgrades.

Easy to use, stable, up front and cheaper

  • Costs are predictable over a period of time.
  • No extra investments are required for installing hardware such as server infrastructure
  • Upfront investment is cheaper
  • It is easy for an organization to work closely with its vendor to find out if any changes are needed to be made.


A cloud-based ERP solution takes less time to deploy as compared to an on-premise solution