Here in the Midwest, more and more businesses are switching their ERP software from an on-premises environment to a cloud-based solution. There’s good sense in this - after all, experts will tell you the cloud is the future of business management. However, that doesn’t mean switching to cloud ERP today is a good idea for every business.
Should your organization switch to a cloud-based ERP solution or stick with an on-premises environment for now? Our new eBook, the Midwestern Skeptic’s Guide to Cloud ERP, explores some important considerations for any business considering making the switch to cloud-based ERP.
Here are some broad topics to consider when asking questions of software vendors, cloud service providers, and your own business:
1. Performance and security
Will your data be secure in the cloud? Keeping your data in the cloud is often more secure compared to storage in a server on-premises, but either method can carry risks. When you’re researching a particular ERP solution, you should ask about the provider’s data security protections. Although cloud service providers generally provide high-quality security, there are different levels of safeguards that vary based on the provider.
In addition to protecting your data from intruders, you also need to be able to access it for your business when you need it. Will you be able to access cloud data as quickly compared to on-premises ERP? That may depend somewhat on where your business is located, because let’s face it, not everywhere in the Midwest can boast great internet infrastructure. However, many businesses find that cloud ERP is faster and easier to access compared to an on-premises system.
Will switching to cloud-based ERP be cost-effective for your business? There’s no doubt that choosing, implementing, and learning a new system is an investment of time and money. However, due to the lack of needed infrastructure, implementing a cloud-based system tends to have fewer up-front costs compared to implementing an on-premises system.
In addition to the actual cost of the implementation, there are other cost factors to consider when switching to the cloud. Not needing to pay for and maintain on-premises infrastructure typically leads to a long-term cost savings and frees up your IT team for more strategic work. Additionally, the dynamic upgrades of subscription-based cloud solutions means you won’t need to purchase upgrades or pay to implement them; they are automatically applied on a regular basis.
3. Daily operations
How will cloud ERP work with your other business applications? Will this save time on daily processes? The answer to this will be specific to your business and the cloud solution you’re considering, but many cloud-based solutions make it easier to automate daily tasks. Additionally, as time goes on, more and more business management applications become cloud-based, making it easier to integrate with cloud ERP systems.
Additionally, modern cloud-based solutions are constantly improving their ease-of-use. If you transition to the cloud, you’ll likely enjoy more workflows and automation, freeing up time for more important activities.
4. Strategic advantages
Strategic benefits are a great topic to explore in-depth with your ERP vendor. How will cloud-based ERP affect your business’s strategies and growth? The increased automation available with the cloud, the easy gathering of data, real-time mobile access to metrics, and more can really impact your daily business processes for the better. Once you’ve settled the smaller logistical questions, it’s critical to take a look at the big-picture and the long-term future of your business.
Download the eBook today
The Midwestern Skeptic’s Guide to Cloud ERP provides 18 questions to help you decide whether your organization should transition to the cloud. If you’re interested in learning more about how cloud ERP might suit your unique business, contact us for a free 2-hour Cloud Feasibility Assessment. OTT, Inc. uses a proven methodology to assess your organization’s needs and find the best solution to help you grow.