More and more businesses have transitioned to the cloud environment in the past few years, migrating from traditional legacy ERP to business management software hosted in the cloud. Here are the advantages of going from on-premise software to a cloud-hosted solution.
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Running enterprise software on-premises involves significant hardware resources and data storage capabilities, as well as the need for regular IT support and security upgrades. The implementation takes substantial time and resources, driving costs higher.
An ERP solution hosted in the cloud does not require hardware setup, which lowers the initial costs of implementation and the time to operation. An enterprise can be running hosted software in days as opposed to weeks or months as expected in the legacy software.
Cloud solutions simplify operational management, which works to an enterprise’s advantage for more complex operations. Data is stored and accessed via remote servers or locations, a scalable and flexible solution to costly on-premise storage and resource-intensive data processing.
Legacy ERP relies heavily on on-site personnel to administer and run the hardware and software systems. Hosted software requires fewer resources – IT and staff because cloud service technicians actively manage it. Enterprises can also outsource regular software upgrades and security updates, lowering IT support.
Cloud environments can be accessed from any device, anywhere in the world, which facilitates team collaboration, data sharing and remote access for out-of-office employees. While traditional ERP may be limiting operational progress to the office, store or factory space, hosted software enables a more flexible way of working.
Unlike the on-premises setup, the benefits of cloud ERP include real-time access to vital data and information updates, when and as it is needed, by authorised users. Real-time access improves data monitoring and KPI tracking while identifying business concerns. Management executives can access the latest financial data daily for accurate reporting and effective decision-making.
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