Do you have on-premises ERP but are considering moving your ERP operations to the Cloud? You’ll want to consider the benefits and the cost-effectiveness of such a move.
How much will Cloud migration cost?
Let’s focus on costs related to a complete migration to a Cloud ERP environment. The cost of migrating will depend on your service provider, which data and applications you want to migrate, the level of support and security required, and whether any applications must be rebuilt. Your software partner will analyze your current system and map it to the new environment. During the migration itself, the primary cost will be for the labor. Your cloud partner will work to safeguard your data and keep your business operational as the migration proceeds. To spread out the expense of migration, you may choose to do it in phases.
Also, your partner may have to reformat, rebuild or even replace specific applications to make them consistent with the Cloud infrastructure.
So a roadmap for a Cloud migration project will involve prioritizing:
Which processes you want to move to the Cloud
What resources you have available for the move (time, money, personnel)
If any of your processes are unsuitable for the Cloud
During the assessment, your Cloud partner will familiarize you with the specifics involved.
Ongoing Cloud costs
Once the migration is complete, you’ll pay a monthly subscription cost. The monthly total will depend on the applications used and services needed. Of course, a full SaaS Cloud ERP will incur a higher monthly charge than would the migrations of fewer applications. You’ll also have to factor in the number of users, your storage needs, and training costs.
Consider how you can save money with Cloud ERP
After the expense of migrating to the Cloud, there are ways that your organization will save money:
You won’t have the ongoing expense of maintaining hardware and updating software.
There will be less stress on your internal IT team because your Cloud provider will be responsible for maintenance and security.
Upgrades will be automatic and take place outside of business hours, so there will be no disruptions.
Your business will be more efficient, and Cloud usage will scale as your business grows, so you’ll only pay for what you need.
You won’t have to maintain space for data storage and security.
You’ll always have the latest version of the software.
When you move your ERP to the Cloud, the continuity, security, and disaster recovery strategy are built into the Cloud offering. That’s something you are probably missing with your on-premises solution.
Total cost of Cloud ERP ownership
When considering the cost of migrating to the Cloud, analyze the TCO (total cost of ownership) over three to five years. In that time, the migration will likely have paid for itself, and you will be able to compare it directly with what it was costing you to run your ERP with on-premises infrastructure. The initial expense of migration should prove well worth it when you consider the long-term advantages.
All at once or incrementally in phases, a move to the Cloud can help you immediately realize new opportunities and benefits. Working with Cloud experts who understand the needs of small and midsize businesses can help you maximize your results and avoid missteps.
If you’re wondering if a move to the Cloud is right for your business, contact our experts at Enavate. We’ll conduct a free Cloud migration assessment and then have a discovery call with your team to help you weigh the costs and benefits for your environment, budget, and objectives.
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