It should come as no surprise that the cloud has changed the way businesses manage operations, particularly when it comes to enterprise resource planning. According to Memeburn, companies are flocking to cloud-based ERP solutions because they are faster to deploy and easier to manage across multiple platforms and devices.
A survey published in 2014 by research firm Gartner indicated that 47 percent of businesses plan to move their core ERP systems to the cloud within five years, including only 2 percent that have already done so. This points to a marked shift in the way businesses are utilizing technology, specifically cloud solutions.Two primary benefits of cloud for ERP are increased productivity and improved cost-savings.
Thanks to the cloud, IT personnel are no longer tasked with servers reaching capacity or server migrations as they would be for an on-prem solution. Additionally, cloud-based systems such as Dynamics GP upgrade automatically, removing the need to track software licenses or schedule time-consuming user upgrades. This allows IT personnel to focus their energies on more business-critical tasks and enables employees to remain productive without needing IT interference.
Although the Gartner survey revealed that 47 percent of businesses will be moving to cloud ERP in the next five years, Forbes contributor, Luis Columbus recently predicted that businesses are probably adopting cloud ERP more quickly than the survey indicated.
Columbus believes this is due to a heightened need for business systems that provide faster time-to-market solutions, are easily scalable, and do not reduce the cost of quality. Traditional legacy ERP systems lack the capabilities necessary to support quality and compliance requirements, according to Columbus. With a cloud ERP system, it's easier for businesses to adapt as their needs change.
ERP solutions can help reduce expenses and increase profitability. Cloud-based ERP systems allow businesses to achieve a faster time-to-market without increasing costs. Since cloud-based ERP systems are considered Software-as-a-Service (SaaS), they operate on a subscription-based billing plan. Organizations are only required to pay for what they need. Subscription-based billing allows businesses to better prepare and budget for current and projected IT costs. Cloud computing also requires fewer peripheral devices, which means less money spent on maintenance and upkeep.
Cloud-based ERP systems bring many benefits to an organization, including cost-savings and enhanced productivity. For more information about ERP and how it can help your business, contact Pinnacle, An Advanced Imaging Solutions Company today!