There is a plethora of ERP (Enterprise Resource Planning) options available to choose from including standard as well as customized applications.

However one needs to basically decide whether to operate ERP solution in cloud hosting or on premise. It has been an extensively debated issue due to merits and demerits of both approaches and the usually the judgment tilts in favor of cloud based ERP solution.

Offloads routine management tasks

On-premise ERP requires dedicated team of technical experts to look after routine tasks of maintenance, repairs, and updates. This leads to handling unproductive workloads by your IT team and improper use of their valuable time. In case of cloud ERP, the routine management is looked after by dedicated teams of experts employed by cloud provider. This not only frees your IT team for working on more creative projects but also makes sure that your ERP resource is flawlessly performing and continuously updated.

On demand and instant scalability

Enterprises adopt ERP hosting solution for boosting their business growth. Therefore one must be able to support the application by providing additional resources to accommodate enterprise growth and to prevent any business interruption. If you are running ERP in an on-site environment, then allocation of additional resources may prove to be a costly, laborious, and time consuming exercise. On the contrary, cloud ERP enables you to acquire additional resources without any business disruption and at lesser costs as well as efforts. Cloud is known for being dynamically scalable and flexible resource and therefore you can move your resource to a larger environment that offers greater resources for assured business continuity.

Greater performance

It is observed that cloud ERP delivers superior performance than on site applications because cloud is designed for incessant availability and is backed by assured network performance. This guarantees far better application availability than on premise option. The performance of cloud based ERP solutions can be designed to adapt to individual needs. Cloud based ERP application is able to adjust to fluctuations in your business more efficiently than traditional on premise solutions. While doing so the cloud ERP solution provisions additional resources.

Better accessibility

Modern businesses need to more agile and capable of greater access to business processes including REP applications. Cloud ERP solution makes sure that users are offered access to real time data from anywhere and at anytime with help tabs or smart phones.

Greater security

Data security is of prime importance while running a data intensive application such as an ERP solution. Protection of business critical data in on-site ERP can be a daunting task, due to the entire responsibility of security being shouldered by your in-house teams. The security monitoring has to be performed on round the clock basis and hence employing your staff can prove to be a costly as well as risky affair. Cloud ERP is a much more secure option that is backed by dedicated professionals who are solely responsible to ensure security monitoring. This also provides an additional layer of security, since your own IT personnel are also focused on system’s security. Leading providers of cloud ERP applications leave no stone unturned while securing your mission critical data by adopting enterprise grade security certifications. Users are also able to access state of the art Disaster Recovery and backup solutions that may not be financially viable in on premise cloud ERP solution.

Rapid deployment and flexible performance

On site ERP can take months for installation even if it is to be implemented on a modest scale. There can be several issues even after the system is ready to be deployed. However, cloud ERP solutions can be customized and deployed within a short time and with a robust support from service provider in terms of customization, planning, and testing before the actual process of implementation. Cloud ERP application needs no software installation on local machines and helps save valuable time that is required for procurement and installation of traditional on premise application. Cloud ERP can be easily adopted in multiple departments, divisions, and branches of the enterprise simultaneously. Enterprises can also benefit due to flexibility of cloud ERP solutions that allow addition or removal of users as required at any point of time.

Ease of enhancements and upgrades

Although it is possible to customize on site ERP solution, the same customization is not possible to be implemented in subsequent versions of your software. There is every possibility that your customization will be erased due to consistent updates and forcing your IT teams to begin right from the scratch to implement customization. This accounts for the majority of enterprises that are avoiding updating their ERP software by sticking to the old version for the fear of losing all efforts that have gone into customization. In contrast, modern cloud ERP platform facilitate carrying forward of your customization even if the application is upgraded. Hence you will always be using the latest version of your cloud ERP application while continuing to enjoy benefits of customization.