Cloud ERP

What is cloud ERP?

Answered August 09 2019

Cloud Enterprise Resource Planning (ERP) software is an off-site ERP system that allows businesses to track, manage, and retrieve critical information. ERP systems assist companies in all aspects of their operations to be more effective and efficient. Companies may choose a cloud ERP system so they don’t have to manage the hardware, software, updates, and security issues that an on-site ERP requires.

According to  Business Software, selecting the wrong ERP software can increase implementation time and costs by 30 percent. Learning more about cloud ERP can help you make a better decision for your particular organization.

cloud erp, upkeep

Cloud ERP Definition and Details

The main difference between cloud ERP and on-site ERP is where they are hosted and who is responsible for them. When companies have an on-site ERP system, they need to manage, upgrade, troubleshoot, and handle all the hardware, software, and processes for the system. This often takes a great deal of IT support and resources.

Cloud-based ERP, on the other hand, is completely managed off-site by a third-party vendor that offers this service to many companies. As a result, the vendor is responsible for all the hardware and software updates as well as ongoing maintenance and security upgrades. Since ERP is the “core business” of this vendor, it typically focuses on staying at the forefront of ERP developments.

Note: Cloud-based ERP softwares readily integrate with other business softwares - one of the most common of which is with a CMMS. Check out UpKeep's integrations with ERP programs here.

Benefits of Cloud ERP

Since cloud-based ERP systems manage everything from company supply chains to  inventory systems, they play a critical role in a company’s business. Here are some of the top benefits:

Lower Costs

An onsite ERP system can be extremely expensive. Selecting a cloud-based system results in a lower installation and ongoing cost.

Faster Upgrades

Since ERP is the primary focus for a cloud ERP company, you’ll benefit from more rapid updates than most companies using standalone ERP can afford.

Rapid Deployment

Since you don’t need to set up the infrastructure in-house, cloud ERP systems can be deployed more quickly.

Easy Scalability

It doesn’t matter how fast you grow, a good cloud ERP system can easily keep up.

Greater Security

Most reputable cloud ERP vendors take security seriously, providing excellent protection of data, improved system availability, and faster disaster recovery.

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