Cloud ERP generally has much lower upfront costs, because computing resources are leased by the month instead of purchased outright and maintained on-premises.
Here we explain a number of the key characteristics and advantages of online ERP system.
The Cloud is especially valuable to small and medium-size businesses (SMB’s) because it provides access to full-function applications at an inexpensive price without a considerable upfront expenditure for hardware and software. Using the proper cloud provider, a corporation can rapidly scale their business productivity software as their business grows or a replacement company is added.
Components of cloud ERP software
Both on-premises and online ERP systems have a centralized database for storing information about business transactions so it are often easily accessed and shared among modules. Having one version of a sale order, for instance, helps ensure consistency of the knowledge across modules and departments minimizes errors and facilitates reporting.
The only “core” module that’s common to all or any online ERP systems, no matter deployment model, is that the one for basic accounting and finance functions, also as related processes like financial analytics, forecasting and reporting. Most ERP products even have modules for human capital management (HCM) and customer relationship management (CRM). In both on-premises and online ERP systems, modules for procurement, inventory management and order management also are used widely, since those functions are common to all or any sorts of industries and businesses no matter whether their product may be a tangible or intangible good or a service.
Why Use a Cloud ERP?
Today, ERP vendors are deploying software within the cloud versus on-premise. Within the past, merchants bought on-premise ERP systems and installed them locally on their company’s own hardware and servers. With on-premise software, it’s your responsibility to customize, maintain, and manage the software yourself. This often meant that only Enterprise merchants were willing to require on the investment to handle complex or custom business requirements.
Cloud-based software allows merchants to access their cloud ERP systems through any browser. Online ERP software providers deliver their ERP software as a service (SaaS), meaning you doesn’t need to maintain any software on your own servers.