Cloud software vendors typically strive for Customizations and agility. Just as cloud-based ERP can scale with an organization, it can also be more easily customized to fit business needs—from the start or over time, as a business grows and evolves. While on-premises ERP software can be customized, those customizations are tied to the current software and maybe difficult to reimplement with future versions, particularly if integrations were developed in-house.
This is one of the main reasons some businesses avoid upgrading their on-premises ERP systems and continue running out-of-date technology. Furthermore, cloud ERP systems tend to integrate well with other cloud-based products, and new modules can be added to a cloud ERP system without downtime or additional hardware.
This kind of agility enables a business to remain proactive instead of reactive, adjusting more quickly to industry changes, consumer trends, unforeseen circumstances and more. Cloud ERP vendors typically manage all system upgrades and updates on an ongoing basis, keeping up with evolving business needs and ensuring customers are using the most up-to-date technology. Updating or upgrading on-premises ERP software requires more time and may even involve hiring contractorsto manage the process.
With cloud ERP, updates can take as little as 30 minutes and usually occur during off hours to prevent business disruptions. Security, compliance and disaster recovery. However, cloud-based ERP providers may offer better security and compliance than companies could otherwise afford. Furthermore, a business can remain confident that its data is always backed up, and the vendor is armed with planned and practiced disaster recovery procedures. Unless organizations have a disaster recovery and business continuity plan, on-premises ERP solutions come with the risk of catastrophic data loss in the case of hardware or software failure or a natural disaster, fire or break-in.
Cloud providers typically offer enterprise-grade security and end-to-end encryption of data between the vendor and the organization. Note that companies are responsible for identity and access management of cloud ERP users and securing devices, like PCs or smartphones. Storage resilience and access. If on-premises hardware fails, a company could spend a considerable amount of time and money transferring data to a new storage system.
This is also beneficial in terms of providing access to business information and data over the internet, an important consideration as more jobs and operations move online and companies seek to automate and streamline business processes.
While the trend is clearly toward more use of cloud, there are potential challenges organizations may face:. Legacy systems. Resistance to change. Bigger businesses with large IT and administrative teams may experience push back from key stakeholders. Moving the ERP software offsite results in administrators losing some control over processes that become automated, and with the vendor managing all maintenance and infrastructure, IT teams lose control over certain operational processes.
Customers must plan for expected changes in computing resources. Typically requires a change order. Broad Network Access Yes. If older technologies, may limit the choice of end-user devices. Worst case, may require desktop virtualization e g. Microsoft Remote Desktop, Citrix. Measured Service Most do not exhibit.
Rapid Implementation Yes For initial installation only 3. Scalability Yes No 5. Ease of Upgrades Yes Not to same extent 7. Lower Cost Yes No 8. Subscription Pricing Yes Yes 9. Improved Security Yes Yes. Your decision should take into account real-world considerations, including: Functionality — Traditional, on-premise ERP systems do offer a lot of functionality, having had decades to develop them for every industry.
Ask vendors how to upgrade and install maintenance releases. Hosted ERP systems do not automatically receive new features, updates or capabilities. You need to schedule upgrades and test them, just like you would with on-premise ERP systems. Customization and Integration — Many Cloud ERP vendors leverage the multitenant capabilities of their cloud platform to allow customers to easily add applications that integrate out of the box and add their own customer-specific business logic.
Source code modifications make it difficult to upgrade to new versions of the ERP system. They also don't have to pay software licensing fees. A hosted ERP offers greater flexibility than installing the software on the company's own system, so customers don't have to worry about continually scaling the software as their business needs change. It's relatively easy to simply purchase more components if a company wants to add more features.
Companies also save money because they can purchase only the features they need, rather than investing in complex and expensive systems that are more than they need or can handle.
They also don't have to worry about replacing the system as they outgrow it or as better systems become available. Instead, the ERP vendor updates the system. Clients can often customize a hosted ERP for more efficient viewing and use, specifying what features they want in each component.
0コメント