There are trends, like shag carpeting and fidget spinners, that briefly catch fire then quickly fizzle, leaving us wondering what we were thinking. And then there are trends, like the seismic shift from on-premises systems to Cloud-based ERP solutions, that are such an improvement for businesses they are sure to stick.
This trend is driven by the growing number of companies discovering the competitive edge to be gained by migrating to a Cloud-based ERP solution. The continuous development of the Cloud is also driven by the insurmountable challenges on-premises systems created for companies throughout the pandemic. At the rate technology evolves, Cloud offerings and business operations need to keep pace.
Today, the imperative to have a Cloud-based ERP solution is clear. Companies relying on a modern Cloud ERP platform are more likely to:
- Deliver orders that are complete, and on time
- See up-to-the-minute inventory numbers
- Get key, decision-driving data faster
- Meet internal deadlines
- Grow profits
Due to such business benefits, there’s been dramatic growth in the number of companies choosing a Cloud-based ERP deployment according to the Panorama Consulting Solutions 2022 ERP Report.
Ready or not – Cloud ERP solutions are now table stakes.
If your company is still operating with an on-premises ERP system, you surely have business reasons and process concerns keeping you there. But if your ERP can’t keep up, your operations are at risk. Companies with on-premises systems are falling behind. They are less likely to meet internal deadlines, and most don’t have the data they need, when they need it, to make timely decisions. As a result, they’re less profitable and even losing potential revenue.
Benefits of Cloud ERP Software vs On-Premises Systems
Don’t get left behind as other companies – including your competition – shift to the Cloud and realize immediate benefits. Modern companies must be faster, smarter and more streamlined – all of which the Cloud enables. For instance, Microsoft Dynamics 365 Business Central is built on Microsoft Azure Cloud and it unites the finance, manufacturing, inventory and transportation management areas of your business through an intuitive user interface.
The Cloud also provides your company:
Easy, Automatic System Updates
The business world moves faster than it ever has, and new technologies continually emerge. Companies using on-premises systems must take tedious, expensive steps to keep up with new features and updates. Their IT teams are heavily involved in configuring updates and readying systems, and there’s usually a bit of business disruption involved.
Further, many on-premises software versions are being phased out and won’t have many upgrade opportunities going into the future. When a critical new capability is developed and released, your system will limit you, and you’ll have to create workarounds to get it.
SaaS models like Dynamics 365 drastically reduce the preparation required for configuring upgrades, even in highly customized systems. In fact, most updates happen automatically, with zero interruption to your business or effort from your IT team. As a result, your company saves time and money – and you have access to the latest capabilities as soon as they’re available.
Streamlined Data Backup
Cloud-based ERP solutions simplify the process of backing up data. With on-premises systems, complex data backup can require a maintenance plan, a variety of products and services, and often an entire IT team. While it’s convenient that on-premises data backup can be automated without the Cloud, it is otherwise a limited approach. On-premises backup means limited space for storing data, and once that limit is reached, you’ll need to invest in more physical infrastructure. Additionally, if there is a disaster or power outage that affects that physical infrastructure, your business could lose the data, or it could be inaccessible for a period of time.
With Cloud-based systems, regular backups happen daily – automatically – and are available to users, requiring less dependence on IT teams. You can choose the timing of automatic backups or revert to a manual trigger to start a backup process. Your data is stored in the Cloud, where there is no limit to the amount you store and where a disaster or power outage can’t render the data inaccessible. And though there is a cost to storage size, it’s often more efficient to store data backups in the Cloud as it doesn’t require you to over-purchase space to accommodate future growth.
Lower CAPEX, Operating and Maintenance Costs
Cloud-based systems offer significant cost savings, in part through increased efficiency and in part by reducing both dependence on internal IT departments and the maintenance costs of on-premises systems. Because Cloud-based ERP systems are hosted off site, there is no need to invest in additional hardware or personnel to operate them.
And while migrating to a new, Cloud-based solution requires initial investment, that investment can be incremental and phased according to your needs and budget. This saves both money and headaches. Regardless of how it is implemented, a Cloud-based system will result in savings over the long term.
Agility and Mobility for the New Business Environment
Remote employees. Global offices. Customer demands that continue 24/7. These are all a reality in today’s market. Your system needs to be accessible 24/7 – from locations both inside and outside office walls.
With Microsoft Dynamics 365, customers and team members can access the system remotely and across device types. The system allows for real-time connectivity from anywhere in the world. It also enables higher rates of real-time, cross-departmental collaboration, as well as the ability to share and integrate data across your company’s departments.
Tighter Security than On-Premises Systems
Initially, companies hesitated to move to the cloud because they weren’t comfortable with Cloud-based security. The reality today is that Microsoft-owned and -managed data centers are more secure than on-premises systems. The experts monitoring and securing your data and activities in the Cloud are top-tier professionals, and they’re using the latest and greatest security tools – informed by detection, prevention and remediation efforts happening across their network.
This, as opposed to a small, in-house IT team which is likely incredibly talented but doesn’t have access to the best tools, all the possible security threats day to day, and the capacity to effectively monitor for and stop threats is what companies need to be secure.
Get with the Program – Move to the Cloud
There is no doubt: Cloud-based solutions are here, and they aren’t going away. In fact, the Cloud is only going to become more innovative as technology providers further invest in and expand on this emerging trend. It’s time to consider how the Cloud can make your operations more efficient and up to date – and save you money in the long run.
If you haven’t moved your ERP to the cloud yet, create your plan to modernize your ERP now. Reach out to our experts with your questions about migrating from your legacy system to the Cloud.
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