Feb 17, 2012

Guest Post On Benefits of Cloud Based ERP Solutions

Cloud Based ERP Solutions - The Benefits

Businesses (especially those that deal with CRM – Customer Relationship Management and HCM – Human Capital Management) have been using cloud based technology for years now. Many have, however, shied away from the use of ERP (Enterprise Resource Planning) as a cloud based system due to the fears surrounding security. However, as cloud based technology (also known as SaaS – Software as a Service) has developed, it is becoming clear that ERP can actually be more secure than the more traditional solutions within the business premises.
The momentum for cloud based ERP has been growing worldwide with an expected global spend to have risen by 21% by the end of 2015 as Forrester research has deduced.
What are the benefits of cloud-based ERP for your business? Can your company achieve the edge alongside competition from the use of SaaS?
Below lists 7 of the features of cloud based ERP:
1.       Predictability
SaaS solutions are provided to you on a subscription basis, this means that those companies with limited funds can sit comfortably knowing exactly how much this feature will cost. Becoming a monthly operational expense allows the business to spread the cost over a length of time. Additionally, most SaaS providers set assurances that there will be no large increases in cost once the solution has been installed due to capped fee increases.
2.       Speed = Time
Due to the management of SaaS solutions by the vendor, there are no setup or installations for the customer. The advanced SaaS systems arrive preconfigured based on their best practice methods to further simplify the implementation procedure. This results in a much faster setup time and far simpler implementation process. Customers can achieve a quick ROI due to the low initial costs and speedy setup times.
3.       Low Ownership Costs
Using SaaS technology, the customer only needs to pay for the staff members that will actually use the software. All of the peripheral resources and technology normally required to support in-house deployment are not needed. If the business needs expand over time, they simply need to add extra users to the cloud based SaaS service without having to worry about additional technology or resources to support it. With the use of a shared data centre, network and management service vendors can pass along savings due to the economies of scale philosophy.
4.       Reliability
Better investments can be made in skilled staff and technology that would be found in an individual company. These investments can ensure reliability, security and performance standards are high. Most SaaS vendors will also offer a typical 99.5% guarantee of service availability in their service level agreements.
5.       Support Improvements
Problems that can be commonly reported on in-house systems could relate to: hardware on-site, software interactions, network issues or other physical attributes that the remote support site has no control over; this can make troubleshooting quite arduous. In the SaaS arena however, the vendor has complete control over the entire system, giving them the edge to create a better service due to the benefit of their high visibility setup.
6.       IT Simplicity
The burden of upkeep and maintenance is transferred from customer to vendor with the use of cloud based SaaS. The entire infrastructure is controlled and maintained by the vendor. This includes: operating systems, storage, networks, application servers, databases, Web servers, backup services and disaster recovery. In addition to this excellent benefit, the SaaS service also eliminates the need for upgrades by the customer. The vendor will take responsibility for all necessary updates and upgrades ensuring that the company is always running on up-to-date hardware and the latest software.
7.       Focus Improvements
One of the major benefits of implementing SaaS is the freedom it gives the customer. With the maintenance and upkeep being managed for you, the business can focus their time and energy on maintaining a happy working environment, providing attention to their staff and concentrating on the resources needed to benefit the core business and future development.

2 comments:

Tani said...

ERP software is an enterprise management system that is not limited with planning. ERP is originated from MRP software.
upgrade sap 6.0

amit chavan said...


Thanks for your greatful informations on ERP. It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort.
Erp software demos brings various integration/touch points that helps the participants experience the different functionalities of an ERP System closely.
Thanks for sharing such a nice blog...