What is Significant About Cloud ERP Software?

What is Significant About Cloud ERP Software?

Cloud ERP software is Enterprise Resource Planning (ERP) software hosted and managed in the cloud by your vendor. You can access this software remotely with any computer, tablet or phone with an internet connection, making it a popular choice for companies that want to manage and plan vital business modules in a centralized system across the company. 

This article explores the significance of cloud ERP software, including top advantages, security considerations, and software selection tips for choosing the best cloud ERP software

Cloud ERP Vs. On-Premise ERP

Cloud ERP software differs from on-premise software because it does not require an organization to invest in or manage its own servers; instead, the provider can maintain cloud ERP software. They also offer security updates and system patching, so organizations do not need to perform these tasks on their own, making it a popular ERP system for companies both small and large.

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Advantages of Cloud ERP Software

Cloud ERP software's primary advantage over on-premise solutions, or even when comparing ERP vs MRP, is its efficiency. You don't need to hire additional IT staff or invest in maintenance and updates - cloud ERP gives you all the tools necessary to monitor and plan company operations and finances, all in a centralized platform.


Cloud ERP software is more cost-effective than on-premise systems, offering businesses numerous advantages. The main advantage is the much lower upfront expenses and potential for ongoing savings on operations.

Cloud solutions typically operate under a subscription-based licensing model, meaning companies pay an established amount per month or year. This simplifies budgeting and managing cash flow for small companies with ERP. On-premise systems require significant one-time investments in hardware, servers, data center infrastructure, and IT staff compared to cloud solutions which typically require monthly or yearly payments.


Another advantage of cloud ERP software is that it can be accessed from any device, including smartphones and tablets. This makes it ideal for businesses collaborating with remote employees or customers globally.

Updated Features

On-premise systems cannot offer certain features that cloud solutions do. Examples include artificial intelligence and machine learning capabilities, which enable companies to automate processes and gain insights that would otherwise take a human to obtain. Innovative technology upgrades is a strong benefit of ERP for companies of all sizes.


Furthermore, cloud ERP can be tailored to fit each company's specific requirements, saving businesses money in the long run since customizing on-premises ERP systems is much more costly.


Cloud ERP can be tailored to comply with regulations and other compliance needs. This saves businesses time and money since they won't have to manually upgrade their software or hardware to remain compliant with federal, state, and international rules. Cloud ERP is an invaluable tool for businesses to stay ahead of the competition in today's volatile marketplace. It enables them to rapidly deliver products and services, develop innovative business models, boost reliability and reduce costs, and manage their network of vendors, partners, and suppliers more efficiently while complying with industry regulations. Compliance tools are typically an important ERP selection criteria for companies in industries with complex regulations to manage and adhere to.


Cloud ERP software's key benefit is its scalability; on-premise systems require manual upgrades and may cause major disruption for employees, making cloud solutions the perfect solution for businesses as they expand. Scalability can also help you save on infrastructure costs, as you no longer need to purchase extra hardware or upgrade existing ones. Instead, increase the capacity of your server.

Automatic Updates

Furthermore, you can benefit from automatic updates and security patches provided to your ERP platform by your vendor. Doing so saves both time and money since there's no need for IT personnel to update it manually.

Ease of Implementation and Use

Another advantage of cloud ERP is its ease of implementation and use. Various software-as-a-service (SaaS) solutions can be deployed quickly, such as Oracle NetSuite ERP, Sage Intacct or Syspro.

Cloud ERP systems enable you to manage your company globally. For instance, if you have customers in different countries with complex business regulations, your cloud provider can ensure that the ERP system is explicitly localized for those markets so data can be maintained appropriately within each location.

If you're looking to maximize sales automation or boost efficiencies, cloud ERP is the ideal solution for your business. Implementing it will enable increased productivity and efficiency while saving considerable money in the long run. Moreover, with mobile access to your device data, you'll have real-time information.


As the digital world rapidly and easily evolves, businesses must be able to adjust quickly and effortlessly to new technologies and processes. Modern ERP systems are tailored to this need, guaranteeing your business is prepared for the future. Cloud-based ERP software, for example, lets your business stay abreast of technological advances like artificial intelligence and machine learning. These innovations can drastically enhance the efficiency of your operations.

On-premise systems often need significant amounts of hardware for future growth. With cloud solutions, businesses can increase their subscription and add more users or storage without purchasing additional equipment, which is valuable when gaining stakeholder buy-in for ERP across your business. 

The ERP vendor hosts and maintains your system, guaranteeing its smooth running and security. They also update software as new versions become available, so product enhancements can be seamlessly added to your solution without disrupting customizations already implemented.

Cloud-based ERP software not only offers these advantages, but it can also save you time and money. For instance, it frees up your IT team to focus on other growth-enhancing projects. Alternatively, employees are empowered to self-serve by creating their custom business apps that integrate with the ERP solution.


Cloud ERP software provides businesses with a scalable and adaptable solution that lets them access their systems from anywhere, at any time. This enables businesses to expand operations without experiencing interruptions.

Mobile ERP is a crucial advantage for all businesses, but especially small and midsized firms looking to expand their revenues and stay competitive. For instance, construction firms with office and field teams can gain from industry-specific ERP that integrates financials, project management, job cost accounting, inventory management, CRM systems and payroll applications for instant team connection.

Learning Curve

Another advantage of cloud-based ERP is its typically modern user interfaces and regular software updates, allowing employees to adjust quickly to changes in the system. This differs from on-premise ERP, often leading to slower end-user adoption rates. Proper cloud ERP training can help improve employee adoption and increase the benefits you obtain from your system.

Cloud-based ERP is ideal for businesses with remote workforces or field technicians who require access to their systems away from their offices. Compared to on-premise software, which often necessitates users to physically travel to the vendor's location to utilize it, cloud-based ERP makes this easier.

Cloud ERP Security Considerations

Cloud ERP software providers implement security measures to keep your data safe and secure. These include encryption, role-based access control and multi-factor authentication for applications. These technologies block hackers from accessing your business information while protecting it against loss or theft.

For example, NetSuite ERP prioritizes security. Data security is a significant concern for ERP buyers, making selecting an ERP vendor with stringent security protocols essential. NetSuite surpasses this standard with vital industry-standard certifications in data security and other stringent security, disaster recovery, backup procedures, and frequent updates to ensure not only a robust feature set, but also upgraded security based on recent trends and hacks.

Cloud-based ERP can be an excellent option for businesses that require an easy-to-manage system, but they must be aware of potential security risks. Here are some tips on keeping your data safe when using this technology:

Password Policies

It's wise to require employees to use unique passwords and never reuse them. Doing this makes your business less vulnerable to cybercriminals in the long run.

Establish Alerts

Setting up alerts will allow you to monitor your company's activities and guarantee compliance with regulations.

Multi-Factor Authentication (MFA)

MFA is an essential element of any ERP system and helps guarantee that only authorized personnel have access to your company's ERP.

Security Patches and Updates

No matter if your ERP is on-premises or cloud, it's essential that your systems remain up-to-date. Delaying upgrades can leave your systems more vulnerable to attack, so make sure they're done promptly. With the right security measures in place, you can rest assured that your business' sensitive data is safe and secure. These steps also aid in preventing cyberattacks from taking place in the first place. 

How to Choose the Best Cloud ERP

Selecting the ideal ERP solution is essential for any business, but especially midsize firms looking to expand without disrupting operations. For instance, construction firms with large office and field teams would benefit from industry-specific cloud ERP that integrates financials, project management, inventory control, CRM systems, payroll processing and more to enable instantaneous communication between these groups.

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