CLOUD ERP: REASONS + BENEFITS
Why should you consider the cloud?
In the olden days, ERP software was installed on local servers. This is referred to as on-premises. Unfortunately, they fell short in many areas; cost, agility and maintenance to name a few.
In contrast, cloud ERP systems resolve those issues and offer many advantages. But obvious benefits aside, why would you move to the cloud?
A quick recap: On-Premise vs. Cloud ERP.
ERP systems integrate your operations across finance, inventory and order management, supply chain management, human resources and more. The result? Improved business processes. Unlike on-premises systems, cloud ERP runs on cloud servers accessible from the internet.
So… Should you move?
Maintaining an on-premise system requires work. You need to personally maintain the servers and other hardware. And you need to spend on hardware, software, space and IT staff, and then you need to keep them running.
There’s also the issue of upgrades. Most businesses will have software customisations in place to meet their unique needs.
This makes upgrading a constant difficulty.
As you know, when upgrades are made available, customisations and integrations need to be tested. Staff will need to be retrained.
You simply don’t need these disruptions in your business. To bypass these issues many businesses will simply not upgrade – leaving them vulnerable to viruses, bugs, errors, and software exploits.
In contrast, cloud ERP offers a more efficient approach. Added benefits include; lower upfront costs, faster implementation and reduced resource consumption. This results in an agile, adaptive and scalable business.
Leaders can focus on growing the business and leave all the heavy lifting to the vendor.
Top reasons to move
MYOB Advanced, MYOB’s cloud ERP offering, has a long feature list. It features strong functionality for manufacturing, wholesale distribution and Not-for-Profit businesses. In addition, with a dedicated Manufacturing Edition available, the level of inventory management and MRP (material requirements planning) functionality is in-depth.
The cost of implementing cloud ERP is much lower than an on-premise system. And ongoing costs may also be lower. That’s because subscription costs are often lower when you take into account maintenance and support, annual licence costs and the costs of maintaining and upgrading hardware. And that’s not even taking into account the cost of IT staff needed to maintain it all.
Upgrades + maintenance
Since the software provider maintains the database, servers and other infrastructure and automatically updates software, you can ensure your software is always secure and compliant. Forget about upgrades or upkeeping your ERP software. In addition, since a vendor’s business is dependent on the availability of their service, they provide greater uptime and security than a business can provide with in-house IT staff.
Technology is constantly evolving. Keeping up is not enough – you need to surpass. Advanced analytics, AI and other innovations offer the ability to use data for accurate forecasts, deeper insights, and enhanced operations. Implementing these technologies requires large investments in data infrastructure and processing. This cost is the reason that keeps technology out of reach for most businesses. Cloud ERP offers a fast and economical way to use these technologies and eliminates the cost and resource-related obstacles. This means you can take advantage of new tech benefits without the infrastructure, costs or IT staff needed to run on-premises systems.
Some businesses worry about putting their data in the cloud for security concerns. This perception is mostly based on the fact that cloud systems of the past, were exploited. However, modern cloud software is superior to on-premises ERP systems. There is no contest – Today’s cloud technology is highly secure boasting features such as encryption and multi-factor authentication. In addition, cloud servers are located in secure facilities, nearly eliminating the risk of physical theft. Lastly, cloud ERP providers can generally devote more resources to software development, database and physical security than businesses can.
Cloud solutions are faster to configure and deploy. Much faster. That’s because the vendor is responsible for activating the software. This lowers downtime and results in your business quickly becoming more adaptive and resilient to the ever-changing market.
Because applications and information are hosted in the cloud, the information you get in a cloud ERP solution is always up to date. This removes annoying software integration bottlenecks and reduces the possibility of erroneous data which is used in reports and forecasts.
When disaster strikes, the ability to recover lost data and continue working with minimal downtime is crucial. While disaster prevention and recovery should be all business infrastructures, the truth is most are somewhat lax in this area. We get it. It can be difficult and expensive to manage. But the damage and risk of data loss can be catastrophic. Cloud ERP services are designed with disaster recovery in mind and offers disaster prevention and recovery solutions. For example, MYOB Advanced uses Amazon AWS platform, which stores your data in multiple geographic locations. So you are never at risk.
Businesses using dated on-premise solutions need to constantly manually update their systems to meet compliance issues frequently. You need to stay on top of the ever-changing compliance updates and regulations to stay compliant. Otherwise, face costly fees and legal consequences. On the other hand, cloud ERP vendors are proactive about complying with national and state compliance issues. In fact, a brand such as MYOB works closely with the Australian government to ensure you are always compliant. This means your software is automatically updated to meet any new compliance criteria.
Cloud ERP systems provide a level of scalability not possible with on-premises ERPs. Scaling on-site systems is an expensive and complicated task. In contrast, cloud solutions make it a breeze to scale up or down as needed. Cloud ERP is also less expensive to implement across multiple locations as it can be done remotely. This ensures hardware investments remain minimal.
Cloud ERP is accessible from any internet-enabled device. This makes it easy for different departments of a business to work across various locations, all while they access a single instance of the software. You can say goodbye to costly dedicated VPNs. Not only that, this level of accessibility opens the door to a larger talent pool for you to hire from since you can easily hire remote workers.
Peace of mind
The cloud is here. And if you are still struggling with cumbersome on-premise solutions for your business – the time to embrace change is now. On-premise ERP solutions are all headed towards their end-of-life support dates. This is something that cannot be changed. As a business owner, you must adapt before your system begins to truly hold you back as software and hardware updates and repairs come to an end.
Making the case for change
Despite the benefits we have just outlined, many decision-makers are still deliberating the need to move to a cloud ERP platform.
The first step is to identify how a cloud ERP system will actually benefit your business. From our experience, practically 99% of businesses we work with will see lower costs, increased revenue, streamlined processes and solve your specific pain points. But you need to really speak with an ERP expert to get a good idea of what improvements your business can expect.
After you identify these benefits, you need to give them value, such as an increase in sales, better visibility, streamlined inventory processes or increased productivity. Once you have this detailed down, consider the following:
- What are the subscription fees of a cloud ERP system against your on-premises licensing costs?
- How much will cloud ERP save you in terms of maintenance and support, hardware, staff and other IT costs?
- How will each part of your business benefit? For example, your accounting, sales and warehouse teams.
- How will it make your business operations and processes more streamlined?
The last point for your consideration: many on-premises ERP providers are moving to cloud ERP themselves. The lack of development and support for on-premise solutions is essentially universal. This is making it far more difficult to maintain and upgrade the software and infrastructure. Even when you do move to a cloud ERP system, the upgrade will be basically a new implementation. That’s why it makes more sense to make the move now rather than sticking with an old system simply because it’s familiar.
The good news is, our team of ERP Experts are here to help. And we’re pretty good at what we do. Just saying.
We have trust in the MYOB brand and as it turned out their Advanced solution really did have everything we needed.
The functionality of MYOB Advanced met our many needs including customer special pricing, advanced stock management, a customer portal as well as CRM.