As businesses are spending a fortune on building and maintaining an infrastructure for on-premise Enterprise Resource Planning (ERP), various other organizations are switching to the cloud. Why? Because of its many benefits. It ensures more security and streamlines processes.
Unlike on-premise ERP, where security is more breachable, a SaaS ensures bank-level security, anti-data theft, and data backup. On-premise ERP deployment can pose issues with mobility due to reliability on private networks.
A SaaS-based company delivers more flexibility and scales with your business. It usually updates automatically. Minor updates occur without disturbing the organizational ecosystem. While considering massive updates, the service provider sends a notification in advance. However, this is not the case with on-premise ERP; updating the software is tiring and the user’s a headache.
How Does SaaS-Based ERP Outshine On-Premises ERP?
Considering the crucial information stored in an ERP system, such as company financials, employee data, corporate trade secrets, and so on. Security is the biggest concern when it comes to prospective buyers. Cloud vendors like Microsoft Dynamics 365 have strict standards to secure your data. Additionally, it ensures mobility and sometimes accesses native mobile apps while complimenting the security. Apart from this, other features outshine ERP.
Needs Less Initial Capital
One of the greatest benefits of SaaS is its cost-efficiency. In an on-premise ERP, the user has to spend a heavy upfront cost on hardware, labor, and training. However, this is not the case with the cloud-based ERP, which uses a SaaS model and eliminates common financial pitfalls.
This approach offers various financial advantages as it turns ERP systems from a capital cost into an ongoing operating expense. Thanks to the cost-efficient qualities of this model, the total upfront investment required for its implementation is relatively low. The low implementation cost can be a savior for small businesses that do not have the budget for on-premise ERP and want to scale quickly.
Generally, massive ERP disasters occur during the implementation stage when coordination and integration become hard. Different departments struggle to cope with the same, and the IT department is scrambling upon it all. There can even be issues like production hampering due to costs piling up.
Cloud ERP Software is designed to tackle these issues right away. They are engineered to be more adaptive, responsive, and easier to implement. Additionally, it takes up to three-six weeks to deploy, unlike on-premise that takes up to twelve weeks. It can be a great asset to small businesses that cannot afford an efficient on-premise ERP deployment. Moreover, every organization acknowledges that having the resources needed is useless unless they are people friendly.
Secures Corporate Data
When it comes to choosing a suitable ERP, security is the biggest concern. Because of the widespread belief, the cloud does not provide better security than the one on-premise, many businesses still prefer to stick to the on-premise ERP. However, nowadays, many cloud ERPs like Microsoft Dynamics 365, offers a suite of tools that ensure data security no less than an on-premise ERP. Moreover, some even provide additional services such as:
- Automatic, simultaneous, and system-wide updates that fix security pitfalls without users having to take additional steps.
- Various backups and failsafe redundant layers.
- And systems looked after by a dedicated team of cloud safety experts.
One of the jobs of an ERP is to deliver interdepartmental corporation; the cloud makes it a lot simpler. A cloud ERP provides cooperation, transparency, and accountability across the organization. It can accomplish all this due to its various features that include:
- A suite of project management tools that streamline synchronicities and communication.
- Real-time performance and financial reporting deliver essential insights to decision-makers.
- Resource management operations to help spot opportunities and eliminate waste.
- Efficient third-party collaborations with vendors and consultants.
- Increases security by showing user footprints across the system ensuring easy inventory monitoring.
Apart from being an asset to the company’s functionalities, a capacity upgrade provides robust agility as well as visibility. Thus, helping them to respond quickly and make more logical decisions.
The software update is one of the significant areas where the cloud ERP system ensures the scope of improvement. Traditional ERP system needs a regular update to fix security threats and boost performance. Upgrading the software can be tedious, arduous, and can demand a lot of IT resources. The situation gets more problematic when incomplete updates are applied.
This cannot be the case with cloud ERP systems, as upgrading is the manufacturer’s or the vendor’s responsibility. New Modules, Security patches, and software updates are usually automatically updated – usually in the background. Therefore, allowing employees to carry on with their tasks without any disruptions. Version inconsistencies are not likely to occur, as the service provider can remotely access and update any user’s account.
Unlocks the Doors to Mobile Devices
The mobile device has been used as an essential business tool. One of the significant ERP benefits that are perfectly suitable for mobile devices is its capacity to provide centralized data throughout the organization but in a decentralized way to remove hurdles to efficiency.
- It allows the users to access real-time data wherever and whenever they want.
- Provides real-time updates and facilitates efficient manufacturing operations.
- Delivers the most up-to-date information to the sales staff to make better decisions.
Trident Information Systems is one of the top SaaS providers. With Microsoft’s Gold Partnership, 150+ resources, and two decades of experience, we have served multiple ventures so far. For further information or a demonstration, contact us.