Advantages of Cloud Based ERP Software

Cloud ERP is a software as a service solution that allows businesses to use an application over the internet without actually owning the program. The advantages of going this route are numerous and can benefit any organization looking to improve its software system.

Advantages of Cloud Based ERP Software

Here are seven advantages of choosing cloud-based ERP software over traditional on-premise solutions:


Many organizations that use cloud-based solutions report that they can access their ERP system from anywhere in the world via an internet connection. This makes it easier for employees who operate out of different locations to maintain productivity no matter where they go. Also, employees who often travel find it easy to use cloud-based ERP software solutions from a laptop or personal computer.

No Installation

One of the key benefits of choosing a cloud-based system over an on-premise program is that it is very easy to implement and start using right away. No installation necessary, no waiting for IT support teams to set up the program, log in and go–it’s as simple as that!

Easier Upgrade Processes

When you purchase an on-premise software package, you buy one version of the software with possibly some available upgrades thrown in here and p-there. Companies who purchase cloud-based packages usually only pay per user so they can upgrade between versions without spending five figures at once. The reason for this is that the software provider charges a monthly fee for each user, and each new update is simply an added feature that you pay for.

No Software to Maintain

There is no need to worry about updating or maintaining the software because it’s all done by the cloud-based ERP company. This can save companies thousands of dollars in IT costs since they don’t have to hire separate system administrators who maintain and update programs throughout the year.

Less Expensive

There are many reasons why we could say cloud-based systems are more cost-effective than traditional on-premise ones, and one of them comes down to customization: When you purchase an on-premise program, you usually get access to a wide range of pre-designed modules for your industry, but not the ability to customize them.

You can purchase additional modules or seek professional help with customization, which usually involves a hefty cost. On the other hand, Cloud ERP providers charge a flat monthly fee for their service, which makes it much more cost-effective for companies to add new modules should they be necessary. This also allows you to customize existing modules within your system without paying extra for them.

Better Security

Cloud systems have better security because they are managed by IT professionals and not just a random team of employees who might or might not know what they’re doing. Also, cloud-based ERP software solutions often require two-factor authentication before allowing users in, preventing unauthorized access.

Improved Collaboration

The ability to access your database from anywhere means that collaboration is improved. No one has to wait until someone else finishes looking at a source document or entering data to continue working on the project. Besides, cloud-based ERP software providers offer specific tools for collaboration such as live chat and online meetings so users can collaborate more efficiently.

In Summation

These days, it seems like almost everyone is talking about cloud computing and the benefits of hosting everything over the Internet. The advantages of cloud-based ERP systems make them an excellent option for businesses of all sizes.

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