CEOs: When You Should Move to ERP Cloud Hosting

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Since the first enterprise resource planning (ERP) systems were released in the early 1980s, companies have struggled to meet the need for customization and flexibility with the expensive and complex systems on offer. The introduction of cloud-based ERP hosting solutions has changed this by greatly reducing capital expenditures, lowering overall costs, and reducing implementation time frames. Most companies already have websites or ecommerce sites on the Cloud; however, the shift to the ERP Cloud for small, midsize, and enterprise-level businesses is now happening at a rapid rate.

An ERP cloud hosting solution provides all the hardware, licenses, and full time IT support staff needed for each of your users for a monthly fee. It ensures the highest availability and reliability, while your data is held in an extremely secure offsite environment with a very high guaranteed uptime. This ready access to data and infrastructure from anywhere at anytime gives you more time to focus on your business.

Many business drivers may act as catalysts to compel a C-Level exec to adopt an ERP cloud hosted strategy, although there are a small number of primary drivers. These can be divided into four main categories:

Agility and Growth

When rapid business growth occurs, the company may grow too fast for the staff to handle upgrades, infrastructure, and business applications. With an ERP cloud hosting solution, it is possible to add new capabilities, increase bandwidth and users, and improve other factors that will enable the company to keep up with transaction volumes and business growth.

Alternatively, it may be that the company has one or more initiatives that require a new system to be implemented faster than internal staff are able. An ERP cloud hosting solution can help both temporary infrastructure and long term needs where a rapid go-live is required.

Whereas on-premise and hosted ERP systems often use existing templates that need to be customized to suit specific practices in a process that can take several months or even years, cloud-hosted solutions feature basic configuration with a limited range of options that can be quickly adapted to meet the needs of most businesses. This significantly reduces deployment time while the most important needs of the company are not jeopardized.

Continuity and Stability

If a company is concerned about uptime, risk mitigation, security threats, or other issues pertaining to reliability, compliance, or security, cloud-hosted solutions can ensure the data infrastructure is stable, reliable, and secure. They can also mitigate the negative impact of a lack of resource availability (for example, in places where technical resources are not easily accessible, such as rural areas) and resource turn-over. In cases where an ERP cloud hosting solution is not utilized, the company is at risk of not being able to replace trained employees quickly enough.

Infrastructure Optimization and Performance

ERP cloud hosting is ideal when the company needs to flexibly scale IT infrastructure up or down with minimal effort and impact on internal resources. It can also provide improved profitability and enhance business performance for companies concerned about transaction throughput and efficiency when technology is used to help respond to customer demand.

Cost Reduction

ERP cloud hosting solutions are most popular with small and midsize businesses for good reason. These types of companies often find ERP cloud hosting to be more cost-effective than maintaining a traditional in-house IT infrastructure. One reason for this is that many ERP cloud hosting services are paid through a subscription model that includes software, hosting, and support costs. According to research from Booz & Company, up-front capital expenditures are significantly decreased, often along with operating costs, by up to 50 to 60 percent over a 10-year period compared to on-premise solutions. In addition, vendors are responsible for maintaining hardware and software including patches, upgrades, and refreshes. They also provide backups, system monitoring, and user support, reducing the need for you to have internal IT support and allowing you to make resources available for activities that cannot be outsourced.

The right ERP cloud hosting solution should cover all of the above while providing leverage for standard industry applications, networking, and system services to enable you to become more productive. It should also allow you to adjust the composition and configuration of the installation to allow for growth or depletion in your business. By adding or removing capabilities in this way, you only have to pay for the services you need.

Finally, the right ERP cloud hosting solution should increase operational efficiency by improving your ability to respond to business changes, monetize investments, and handle increased demands through the use of existing resources.


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