How can Cloud ERP help small and medium businesses?

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What is Cloud-based ERP?

Cloud ERP is Software as a Service which would allow users to access their Enterprise Resource Planning (ERP) software through the Internet.

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When your Enterprise Resource Planning (ERP) software is in the cloud, you can get your hands on web-based maintenance and management of your business’s operations, reporting and accounting. From handling your customers through Customer Relationship Management (CRM) to taking care of your employees via Human Resources (HR) and managing your business’s finance (Accounting), you have all the amenities you need to adapt to the cloud model. Owing to the advanced requirements and complexities, the ERP Software has taken a long time to be a part of the league of cloud. While progress is witnessed, we can see that many ERP suppliers are moving on to cloud. Major ERP players such as SAP are moving on to cloud.

All you need to do is understand which cloud model would suit your business requirements.

If there are any connectivity issues in your current infrastructure, you need to simplify it. Or else, it might be tough to work on. To understand which solution would work well for your business, you need to complete a feasibility study. It can help you out in identifying the IT capabilities you can offload to the cloud, determines the service availability for your business and helps you seamlessly transform to the cloud.

To overcome these hurdles, depending on the right ERP Software vendor would come handy.

Cloud ERP Concepts

Before we discover the advantages of Cloud ERP, let’s understand what are the terminologies involved in it.


Deployment strategy: You can deliver the Cloud ERP functions more quickly since companies would require some time to plan, migrate, customize, configure and train their employees.


Cloud-based ERP: The enterprise resource planning software which is hosted offsite on your ERP vendor’s services. You can access it through the web browser.


Hosted ERP: The hosting service provider belonging to an organization can manage the ERP software deployment along with associated infrastructure. You can utilize the hosted deployment model while businesses look for outsource IT operations. This might not completely provide cloud benefits.


End-to-end security: With a secured and encrypted connection between your cloud-based vendor as well as customers, you can simplify all the security requirements.


Subscription license: Your company might need to pay a subscription fee within particular time intervals, either monthly or annual in order to leverage the software. It can include all the upgrades and software maintenance charges as per the organization.

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Cloud ERP vs. On-Premises ERP

Cloud ERP


You might be wondering, if the On-Premises ERP Software is capable of providing the needed support, then why would you need to choose Cloud ERP?


Let’s take a look at the difference:


On-premises ERP: On-premises ERP software would be managed and installed by a company’s IT staff or a service provider. The core software platform would be licenses by the business while you can lease or buy enterprise-grade software. With antivirus as well as security software, you can manage additional costs.


Cloud-based ERP: The vendor would manage the software while the software would provide “as a service” model via the cloud. The data storage, security installation, upgrades, physical data center infrastructure, application and the operating system would be under the control of the vendor.

Benefits of Cloud ERP Software

Cloud ERP has gone on to significantly reduce costs in a number of ways. What are the other advantages? Let’s take a look.

  • It’s time for you to forbid all those upfront costs while handling computing infrastructure such as data servers and hardware.
  • You can easily reduce your IT support services since your data center would provide the IT support.
  • You can get rid of direct fee for application software licenses with regards to the monthly fee
  • Reduce the maintenance and support costs for those applications since your cloud vendor would be handling all the upgrades and updates
  • You just have to pay for all those computing resources
  • With a fixed monthly rate, companies can leverage their cash on vital business initiatives
  • Take complete advantage of all Cloud ERP applications
  • You have a better disaster recovery plan in hand
  • No more worries regarding the company’s storage or computing requirements
  • Avoid shaking hands with the hackers since your data wouldn’t be stored in the local storage
  • Go global with Cloud! No more implementing software and hardware at different location.

It’s time for you to shift on to Cloud ERP. Solutions such as SAP S/4HANA Cloud can act as the best Cloud ERP for your business. Don’t waste your time! Contact iQuantM for Cloud ERP related guidance.

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