Enterprise Resource Planning (ERP) Software is designed to integrate and streamline your business’s main activities to increase efficiencies. In today’s ever changing business environment, having an ERP system is becoming a necessity rather than a luxury, particularly for fast growing and dynamic companies.
While some companies think ERP software is too expensive or too difficult to manage, that’s not necessarily the case. Cloud ERP is becoming increasingly popular amongst midsize businesses as it can provide greater flexibility and lower entry costs than on-premise ERP systems.
Here are 4 benefits of cloud ERP:
Less Upfront Costs
The upfront cost of an on-premise ERP system can be off-putting for some businesses, as it can make a large dent in your company’s funds and restricts you from investing that money in other parts of the business. But with a SaaS cloud ERP like MYOB Advanced, software is usually provided on a monthly subscription. The low initial investment means that businesses can benefit from the essential insights and functionality of an ERP system without breaking the bank, and allows you to better plan and manage your expenses throughout the year.
Reduce IT Overheads
Not only are there less upfront costs for cloud ERP systems, but there’s also less overheads. If you decide to host an on-premise ERP, you’ll be hit with the costs to build, maintain and secure your data centre. Your IT team will spend hours working on repairing old or outdated hardware, servicing servers, and ensuring that all firewalls and security measures are in place. Each one of those hours will add up in labour costs.
With a Cloud ERP all your data is stored in the cloud, so there are no complex or expensive servers to manage, reducing your IT overheads. Cloud ERP data centres are hosted and maintained by the best-of-the-best in world class hosting environments, whose sole purpose is to ensure your data is easily accessible, fast, and secure.
Automatic Software Updates
One of the pains associated with an on-premise ERP is the need to fork out for the newest updates and bug fixes to the software. Quite often these updates are vital for the health of your business, and if you choose not to upgrade your software will quickly become outdated.
Moving to a cloud ERP will ensure your staff are always running the newest release with all the latest features and security patches, as updates are done automatically and already included in your subscription fee.
One of the key advantages of Cloud ERP is the ability to easily scale the solution as your business needs change. When paying month to month, you can easily add or remove users when the business grows or shrinks, ensuring you only pay for the licences you need. This makes cloud ERP a good fit for fast changing businesses. With an on-premise ERP, once you’ve made that initial outlay there’s no money back if you no longer need all your licences.