What are the benefits of cloud ERP

What are the advantages of Cloud ERP compared to traditional ERP systems?

Cloud ERP, i.e. the outsourcing of enterprise resource planning to external data centers while at the same time dispensing with the provision of one's own IT infrastructure for deployment planning, is a current trend. Associated with this are some advantages on the financial side, but also disadvantages with regard to data security, reliability and expandability, which must be taken into account.

Cloud ERP and in-house ERP in comparison

Cloud-based ERP systems are usually cheaper to operate than in-house installations, as the effort for the provision, maintenance and modernization of your own IT infrastructure for this area is largely eliminated. The costs for specialist staff can be reduced or saved entirely. Experience has also shown that a cloud ERP can be introduced in a shorter period of time.

The disadvantages of cloud ERP

With regard to the operation of an ERP system in the cloud, the question naturally arises: “What about data security?” After all, sensitive company data is sometimes outsourced to third-party data centers, which are often located abroad. Another central point is the dependency on the quality of the Internet connection and the high browser load due to Cloud ERP.

In addition, the range of functions and the ability to adapt to individual business processes in solutions from the cloud are only rarely comparable with classic ERP software. Often only the core functionalities are offered, which even in the SME sector allow only a few companies to use them appropriately. Even if updates should be provided by the developer, there is hardly any planning in this regard and the possibility of a previous test.

So the decision for Cloud ERP needs to be carefully considered at this point in time; an in-house system is often still more suitable. The ideal solution are special in-house ERP systems with industry-specific modules that also score points in on-premise operation with lean structures and an attractive price-performance ratio.