[September 2015] Even as the cloud takes the lead as the “in” platform for ERP software, confusion and doubt remain. What exactly is the cloud and how does it fit in among all the other available ERP options? TechTarget’s SearchManaufacturingERP recently explored the answers to these questions, with a focus on the midsize manufacturer (defined as companies with annual sales between $100 million and $1 billion).
What is It?
Cloud computing is “the hosting of software, data and IT resources by an outside supplier” and, as explained by SearchManufacturingERP, is generally associated with the term Software as a Service or SaaS. This means the user pays for services that include software license, hosting, maintenance and support in one monthly fee. Because the services are outsourced, cloud-based ERPs generally cost less than their counterparts, are faster to implement and easier to maintain.
Is it Right for Your Company?
Typical concerns tend to center around access, security and control. If an outside vendor is responsible for a company’s applications and data – is it safe? SearchManufacturingERP reminds the reader that security and access are “essential core capabilities for cloud providers who much provide bulletproof performance to stay in business.” Much like other outsourced jobs, finding a reputable supplier with proven expertise is the key to success.
Worries regarding perceived difficulty of modifying software in a cloud-based environment are also unfounded. If an ERP solution is implemented correctly, there shouldn’t be a need for changes. The original implementation should include any customizations needed for a business to operate smoothly. Once again, finding the right vendor plays heavily.
The Advantages
The cloud-based ERP is generally easier to integrate with existing solutions because “these systems are designed from the start for communications and interaction with both remote and local connections.” This, along with the lower operating expense associated with cloud-based solutions often make more financial sense for the midsize manufacturer.
Additional resources from SearchManufacturingERP: