A cloud ERP system is a business management software that's hosted mainly on the internet. It offers services that were traditionally only available to large corporations but are now accessible to small and medium-sized businesses. The evolution of cloud ERP systems in the modern technological world has definitely now been accepted within businesses across all industries and additionally with several ERP vendors cutting access to support for older on premises versions. This is definitely an attempt to move companies to a cloud solution. Therefore, with this being the direction of ERP systems, I review just some of the benefits of this undoubtable destination.

Cloud ERP systems provide many benefits over traditional, in-house solutions. Some of these advantages include:

1.    Lower operating costs: Compared to on premise ERP systems that require manual upkeep and hardware updates (that all comes with a cost the company), cloud ERP is a relatively low-cost option. With cloud ERP, you won’t need to make huge investments in an overhaul of your hardware or software.

2.    Easier maintenance - because the server is online and accessible from anywhere, it can be monitored 24/7 by a third party. Therefore, your company will not have to invest in new hardware just to use features of the system. That makes operations a whole lot easier and more affordable to manage because cloud ERP allows companies to eliminate earmarks for hardware repairs and software upgrades.

3.    More security - when your data is stored in the cloud, it's less vulnerable to hackers or physical damage whether you are a large or small company. You never have to worry about data getting hacked by a third party, because the system tracks all activity and fully encrypts your data.

4.    Service support - Since cloud ERP is a subscription-based model, service support is available 24/7 for any issues that might arise. On-premises hosting typically requires the additional purchase of a support package, but as a cloud-based ERP service subscriber, you can access the support you need at any time!

5.    Less hassle - if you ever need to switch providers or move your data onto another system, it'll be easy because it's all stored online and backed up by multiple sources.

6.    Flexibility of access – with remote working being more popular than ever, this is essential to any company. Anyone in the company with access can input data in real time from any connectible device, this could be a PC, laptop, smartphone, or tablet. As long as everyone has an Internet connection, co-workers can collaborate across great distances and time zones.

7.    Continue to grow – a massive benefit for any growing company! You can adjust the whole infrastructure to the necessary size for each stage in your development as a company. For new and smaller businesses, cloud ERP makes it possible to skip the growing pains of scalability that have hampered many of today’s veteran companies.

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There are plenty more benefits to a cloud solution and since speaking with different ERP vendors they all confirm the same, that cloud ERP systems are the next stage of the digital transformation for any company.