How Cloud ERP Compares to On-premise ERP (Part 2)

Improved System Performance and Accessibility

Cloud ERP often delivers better performance than on-premise solutions. Cloud software architecture is designed from the ground up for maximum network performance, which can mean better application availability than traditional on-site ERP systems. Cloud-based ERP also offers optimised performance that can adapt to your needs. If there is a spike in your business, cloud ERP automatically adjusts and dynamically provisions additional resources to handle the surge.

For example, some providers are able to commit to 99.5% availability for their customers, have a 99.98% average uptime performance over the past 12 months, and makes uptime performance information available to all customers at all times. A local IT department is unlikely to be able to achieve these results, and may not even be able to regularly report their system uptime results to management.

It’s also important to note that a cloud-based ERP solution provides real-time data that can be accessed via the Internet anywhere at any time. That means that staff at your company can see accurate information on laptops, smartphones, and tablet devices while they travel or telecommute—all without extra setup fees or ongoing costs.

Not only can cloud-based ERP provide better performance and greater accessibility, but better security as well. Because it’s their core competency, good Cloud ERP providers make securing their systems a top priority by providing strong, industry standard data security certifications such as compliance with PCI DSS and SAS 70 standards. Moreover, they should also follow other rigorous security, disaster recovery, and back-up procedures that would be cost-prohibitive with on-site ERP solutions.

Deployment Speed

Every ERP deployment takes time and requires careful planning, but cloud ERP offers clear advantages when you consider speed of deployment. Since cloud ERP requires no additional hardware, your business doesn’t have to waste time procuring and installing IT infrastructure. With cloud ERP, you can easily roll it out across multiple regions, subsidiaries, and divisions, avoiding the cost associated with those rollouts. If you chose a cloud-based ERP system, these differences can add up to a significant time savings: Cloud ERP deployments usually take 3-6 months compared to the 12 months that it typically takes to implement an on-premise solution.

Cloud-based ERP systems are also easier to scale, giving you the flexibility to add more users as your business grows. On-site ERP solutions don’t offer the same freedom – to give more employees access to an on-site system, it’s often necessary to provision additional hardware.

Every business is unique, so taking the time to consider how different ERP deployment options will affect your company is critical.

To learn more about deploying a cloud-based ERP solution, contact VTS.