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Why A Cloud ERP Solution Is Your Next Step Toward Business Success

Posted by Michael MacDonald

Apr 30, 2014

next step business successWhen you're selecting the ERP software to use for your business, you need to take a few factors into consideration. First, should you piece together multiple specialty tools or should you find the one single solution that covers all your needs? Once you've determined that you'd benefit from an all-inclusive tool, it's time to decide where to host it. Many businesses use traditional on-premise systems. But more tech-savvy companies have become cloud converts: once you see the benefits of a cloud ERP solution, you'd never consider going back.

If you've read our whitepaper, you know the benefits Dynamics ERP software offers over NetSuite solutions.  Now, you need to delve deeper: should your business management software be hosted in the cloud?

The short answer is: yes! Cloud-based ERP software offers benefits that in-house solutions simply cannot match.

Server Housing And Maintenance

If you choose on-premise ERP software, you're on your own with regards to IT services. You need the space to house all your servers as well as a full staff of IT specialists to monitor those servers. You're likely paying for much more server space than you're ever going to need, thereby wasting money and space. You also need to pay for licensing, infrastructure and operation of the servers on a daily basis. The functionality of your servers is your responsibility, too: Maintenance, diagnostics and repair are all costs you must incur.

Cloud ERP software, by contrast, involves no maintenance costs. You don't need servers in-house, because the system is hosted elsewhere. You don't need an IT department, because the cloud provider maintains, diagnoses and repairs the system. You don't pay for space you aren't using, because you upgrade as your business grows. Licensing is covered by the cloud provider, too. 

Lower Up-Front Cost

Equipment, hardware and user licenses are the tangible up-front costs associated with on-premise solutions. But, it's the intangible costs that break the bank: system implementation leads to inevitable downtime that seriously cuts into your business's profitability.

Obviously, there's no need for any equipment when you're hosting in the cloud. In fact, the only up-front cost shared by on-premise solutions and cloud-based ERP software is system implementation. The unique advantage of the cloud, however, is that downtime is dramatically decreased. The implementation of a cloud-based solution is done "behind the scenes" – the entire system is set up while your business continues functioning normally. This strategy enables you to work out any of the kinks before migrating to your fully cloud-based ERP solution. As a result, your business doesn't suffer through the upheaval of transition and the turbulent beginnings of a solution riddled with bugs. 

Access To Advanced Technology And Specialty Tools

On-premise solutions need to be upgraded and updated manually – most often by your IT department. Systems are constantly being improved, so manufacturers issue updates aimed at fixing errors and improving efficiency. You're responsible for implementing these upgrades as they become available. Unfortunately, though, updates may lead to temporary system downtime, which seriously hurts your business's productivity.

Cloud-based ERP solutions offer a unique advantage that on-premise software can't match. They offer access to updates and upgrades without any added effort on your part. Since the cloud provider supports the system, upgrades are almost automatic. This means you're not left in the lurch, working with a buggy system when a new, bug-free version is available.

It’s easy to see why cloud-based ERP software is the way of the future. In-house solutions are quickly becoming obsolete as more and more small and medium-sized businesses experience the vast benefits of cloud ERP.

If you'd like to learn more about the benefits of cloud-hosted ERP software over traditional on-premise options, contact the experts at SMB Suite. With a full suite of Dynamics-integrated, cloud-based ERP software, SMB Suite provides the one software solution you need to keep your business going.

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