Is Cloud ERP for me?
Enterprise Resource Planning – ERP – has tremendous benefits for any business, bringing together data and processes to work as efficiently as possible. But with the Cloud’s ever-greater opportunities, when’s the right time to switch to a Cloud based ERP system – if at all?
It’s a tough decision. Especially if you have an existing on-premise ERP system that you’ve invested time, energy and money in. So do you improve what you have by increments, or completely revamp your system? What are the differences? And how would they affect your business?
The physical difference is simple: on-premise ERP uses servers installed on your premises and maintained by your own IT team; Cloud ERP works from off-site servers, managed through a central team run by your ERP provider.
The differences to your business are more wide-ranging though:
Ownership costs With an on-premise system, there’s a large up-front investment in hardware, facilities and, frequently, staff training – whereas with Cloud ERP you’re simply paying for the services you use.
System upgrades It’s important to keep your ERP system up-to-date. But upgrading an on-premise system can take so much effort, some businesses settle for working with out-of-date technology.
Performance and accessibility Cloud ERP is designed for network performance, so often outclasses on-premise systems. They’re easier to use remotely, and security is best-in-class, with full disaster recovery and back-up.
Setting-up With no need to build an IT infrastructure, Cloud-based ERP takes less planning and project management, and can be easily rolled out across your whole organisation in 3 to 6 months rather than 12.
So on the face of it, Cloud ERP seems to have the edge – especially with the latest developments from both Oracle and Sage. But whether or not you should switch may depend on the speed of change…particularly of the industry you’re in.
Rapidly-changing sectors such as media, banking, retail and technology mean you need to adapt quickly – and Cloud ERP offers flexibility and scalability. More stable industries like utilities, chemicals, public sector and manufacturing can be managed through steady improvements – ERP evolution rather than revolution, if you like.
Truth is though, every business is unique. So if you really want to know what’s best for your business, there’s only one foolproof way of finding out – call Percipient to discuss!
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