Cloud-based ERP software refers to enterprise resource planning tools and applications that users can access via the internet. You can manage every area of your operations from anywhere, unlike desktop ERP.
Rather than storing data in the cloud, on-premise ERP software stores information within a company’s internal server infrastructure.
While this type of ERP system provides companies with more customisable options, they tend to be more expensive than cloud-based ERP systems. They need to be updated and serviced to stay current. It also takes longer to implement an enterprise resource plan using on-premise software than cloud-based ERP software.
Relatively new and small businesses without clear business procedures and sophisticated IT are likely to find on-premise ERP software cumbersome, complicated and expensive.
The only real advantage of on-premise ERP software is that it can be customised, which may provide greater return on investment (ROI) for larger businesses with complex needs.
The size and type of a business typically dictates whether cloud-based ERP or on-premise ERP is the right choice. For example, a relatively new small business that doesn't have many well-defined business processes or sophisticated IT, can implement a cloud ERP solution quickly and easily. An older, larger business however, may need a customisable solution that takes longer to implement.
These days, businesses of all sizes across a spectrum of industry sectors, are using cloud software to manage almost every area of their business.
CIO, in conjunction with Sage, carried out a survey of a hundred CIOs and senior IT decision-makers to find out about their cloud usage and views on cloud-based business software.
We also engaged the best advice from the ones who have been using enterprise cloud applications for several years. We discovered that 71% of our respondents are using business-critical cloud applications with most of them praising it for its efficiencies and ROI. 90% of the respondents say they have had a return on investment from cloud implementation.
54% of the respondents who use business-critical cloud applications such as ERP, say that they invested in them less than two years ago. A significant 46% of respondents have been operating business cloud apps for more than two years and a tenth of them for more than five years, indicating a reasonably high level of maturity among organisations.
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