Cloud computing is poised to become an integral part of business processes across all categories of industries. The amazing advances of cloud adoption and the accelerated rate of cloud adoption can be attributed to the cost benefits due to absence of any capital investment.  

Similarly, cloud ERP has also been making inroads as confirmed by researchers and it is poised to registered growth of over 20 percent in the year to come. There are far superior economy benefits of cloud ERP than standard cloud hosting solutions, which are not usually known to many individuals. Here are some the not-so-obvious cloud ERP advantages. 

Mitigation of capital expenditure

In contrast to legacy ERP systems that involve significant capital investment in the form of infrastructure, hardware, and servers, Cloud ERP is devoid of this expenditure. This is because Cloud ERP is delivered from secured facilities of data centers over internet and managed as well as maintained in the remote data center facilities. Users of cloud ERP solutions are only paying for the services that are consumed by them. The choice of how much more or less resource to purchase is always with user due to subscription based pricing that involves negligible upfront costs. 

Users of cloud ERP are aware of their monthly subscription costs. The feature of subscription based payments can be an ideal benefit for small enterprises that need to allocate their funds carefully.
Flexibility to expand

Manufacturers can easily add users and locations with help of internet connectivity to expand scope of ERP. Cloud ERP allows sharing of a single instance across all facilities, departments, branches, and locations. Addition and integration of new manufacturing locations can be executed instantly. Unlike traditional software based ERP, users need not acquire fresh copies of software to be used at separate locations.  

In-house ERP systems involve additional burden of dealing with unexpected hardware related issues. This can lead to complexities of troubleshooting errors that can prove t be overwhelming. In addition to the downtime users may have to incur additional expenditure for maintenance and trouble shooting. 

Cost efficiency 

Manufacturers are able to save on huge infrastructure associated costs with cloud ERP solutions. One can obviate costs of acquiring servers, middleware, and databases and can also avoid significant costs of upgrades, replacements, and maintenance of infrastructure in traditional ERP systems. This presents an amazing opportunity to channelize the savings to development related workloads. 

Cloud ERP is SaaS software as a service offering and needs almost no peripherals and the running costs are also negligible. In addition to these advantages, users of Cloud ERP solutions are free from any maintenance related workloads or associated expenses. Many established vendors allow smooth expansion of Cloud ERP system to be used by additional users at other locations. 

Faster ROI

Traditional ERP system can take months for installation customization and testing. It severely delays the implementation process and involves locked capital with no output for months together. On the contrary, cloud ERP can be implemented within hours by performing full customization and testing. Since your ERP system is up and running instantly, you are able to get quicker return on investments. 
Since the installation and management of cloud ERP solution is the vendor’s responsibility, users are offered pre-configured system that is ready to operate by integrating flawlessly with their businesses. 

Freedom from versions

Traditional ERP software needs to be frequently upgraded by purchasing newer versions and physically installing them on workstations. It is found that many vendors are not upgrading with every new release. Hence the users are deprived of new features until the next upgrade is introduced which can happen once in few years. 

In contrast cloud ERP is free from such issues since it is constantly being updated with help of new security patches and real time enhancements that ready to be accessed instantly. Since there are no upgrades or new versions to be installed, manufacturers are free to focus on their business without getting involved in software related issues. 

Cloud ERP solutions offer distinct advantages to users in comparison with traditional in-premise systems. These cloud computing based ERP systems can be accessed by users from any locations for improved efficiencies. Thanks to the amazing technological developments in SaaS technology, users need not be concerned about security of Cloud ERP anymore. 

Interesting Topic: Advantages of Cloud hosting?