Cloud Based ERP Software

How does a cloud-based ERP software help small businesses?

Cloud ERP is a Software as a Service (SaaS) solution that allows businesses and organizations to access Enterprise Resource Planning (ERP) software over the Internet. Cloud ERP generally costs much lower than on-premise ERP, as the computing resources are rented on a monthly basis rather than purchased completely. Cloud ERP also helps enterprises to access their essential data and applications at anytime from anywhere.

Types of Cloud ERP Software

There are various types of cloud-based ERP software available in the market that serves businesses in accordance with the features of the hosting provider.

Multi-tenant SaaS: It is similar to a shared hosting, where a server hosts an ERP software and its associated infrastructure that will be shared by multiple companies or organizations.

Single-tenant SaaS: Here, a private server will host an ERP software and its associated infrastructure that will be used by only one company. This is suitable for large enterprises.

Hybrid ERP: As the name indicates, it combines various approach like private, public and on-premises for computing, storage and other services to leverage maximum benefit.

Cloud ERP v/s On-Premises ERP

To use an on-premises ERP software for business, the company need to purchase the necessary infrastructure like server and network components from a vendor and also pay them to install and manage the same. This may be affordable for large enterprises and MNCs. But small businesses and startups cannot afford to spend so much for technical support.

Cloud-based ERP comes as a solution for this and is hosted and managed by the provider, who offers the software through “as a service” model via the cloud.  The vendor takes complete responsibility for managing the application, data storage, operating system, servers, data center infrastructure and the installation of security updates and feature upgrades.

Benefits of cloud-based ERP software

A cloud-based ERP software offers great benefits compared to traditional on-premises software. Let us discuss a few of them in detail.

Reduce infrastructure costs – The most important benefit of an ERP software is in reducing the initial costs of purchasing and installing the infrastructure like server, network components, security features etc. Also, to manage the software without flaws, the company needs to spend on IT technicians, software engineers and other maintenance tools. All these costs can be saved by using a cloud-based ERP software for business.

Quick operation – It is not easy for companies to spend their valuable time on maintaining the software and its infrastructure as it diverts them from their main service or operation. But with a cloud ERP software, all the responsibility for maintenance is for the service provider and this makes the process fast and easy for the users.

Accessibility – A cloud-based ERP makes it easy for businesses to access the software from anywhere and at any time, thus ensuring business continuity during crisis situations or any unforeseen circumstances. This will also make business operations faster and efficient without the limitations of distance and time.

Scalability – Businesses always face times of sudden growth, neutral stages or downfalls at every stage of its evolution. So, it needs a system that is flexible as per the varying needs. A cloud-based ERP allows to scale up or scale down the resources according to need and users don’t need to pay for an infrastructure that they are not going to use.

Disaster recovery – Disasters are unpredictable and can happen at any time. This will create huge loss for companies if they are maintaining an inhouse software for their business needs. But, in case of a cloud-based ERP, the whole responsibility for security and disaster recovery belongs to the service provider and businesses can remain safe and secure without worries.

Cloud based ERP for small business

A cloud-based ERP software is very useful for small and medium-sized enterprises (SMEs) because it provides access to essential applications at an affordable price without substantial expenditure for hardware and software. With the support of an efficient cloud ERP software provider, a business can rapidly enhance their productivity with minimum cost and effort.