Why are so many modern businesses moving ERP to the cloud?

October 18, 2015
October 18, 2015 TM Group

Why are so many modern businesses moving ERP to the cloud?

Employees preference for mobile tools fuels cloud adoption.

Cloud-deployed ERP solutions have gained massive popularity among small to mid-sized businesses in recent years. TechRepublic shared the result of a survey conducted by Software Advice that found cloud-hosted deployment is overtaking on-premise options in many industries.

The Software Advice report discovered 68 percent of buyers opted for on-premise solutions and less than 20 percent of respondents explored cloud deployment options in 2008. These numbers radically flipped in 2014, with cloud preference more than doubling and only 5 percent evaluating an on-premise software option.

These findings go along with an earlier Gartner report that projected cloud investments would constitute the bulk of business IT spending in 2016. According to Gartner predictions, at least 30 percent of businesses who offer services will move the majority of their data processes to the cloud by 2018. The report goes on to describe how companies need to explore different functionalities of cloud applications to get optimum ROI from new technology investments.

How do cloud solutions solve modern challenges?
Many experts suggest a lack of information is a major roadblock to moving ERP to the cloud. One of the most surprising aspects of the Software Advice report is that between 2008 and 2014, the number of business buyers who had no preference between on-premise and cloud solutions rose from 20 percent to 60 percent. There is more information about business technology than ever, but it seems the wealth of educational materials has led to indecisiveness.

By focusing the information regarding cloud-deployed solutions on the problems and advantages modern industry offers small to mid-sized businesses, company leaders can gain greater understanding into the benefits of off-premise hosting.

Cost-effective – Some companies are hesitant to moving ERP to the cloud because they have already invested in major hardware tools. Businesses may not want to learn about cloud solutions because they could negate previous investments.

IT Pro said one of the major advantages of cloud hosting is that it is a cost-effective option when implemented properly. Cloud servers offer more computing power for less money and technicians who could eliminate IT staffing expenditures. A company should carefully investigate the finances involved in cloud adoption with an ERP partner.

A fast and flexible solution – Modern industry needs the speed and convenience cloud-hosting can provide. The ability to access business information from anywhere is paramount for businesses that expand operations to keep up with e-commerce and global competition.

Cloud ERP solutions provide real-time processes to companies that have to quickly adjust to changing government regulations and consumer demands. If companies are worried about redesigning their infrastructures, they can test cloud performance using a hybrid approach. A business can start by hosting data that needs the most flexibility on the cloud and keep other processes on-premise.

A big data world -Information is crucial to business decisions. The ERP Software Blog’s “7 Game Changing Trends Towards Online Accounting Software” infographic detailed how the Internet of Things provides many companies with more data than they know what to do with.

The processing speed of cloud servers allows businesses to analyze and prioritize information that pours in from their suppliers, employees, customers, equipment and online tools. Once a business maximizes its own data, it can incorporate information from outside sources to gain greater understanding of the market.

Mobile employees – Most company workers own a mobile device. Familiarity with technology has become a common occurrence among employees. Business managers who prioritize mobile tools save resources usually devoted to IT departments and promote engagement with younger workers.

Cloud-deployed ERP solutions allow employees to connect mobile performance to a central infrastructure. This improves performance consistency and data security. Modern workers are probably going to access business messages, schedules and data on their phones and tablets anyway. A central system that facilitates online performance ensures every activity contributes to company success.

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