ERP is not a new thing. It has been around for the better part of 40 years. However, back then, it was technology that due to capital constraints was typically limited to large, multi-national corporations. However, over the last 10-15 years, small-midsize enterprises have been adopting ERP technology. And now, with the cloud literally everywhere around us, it makes sense that our business critical data should be with us wherever we are, whenever we want it - making cloud-based ERP a must-have for rapidly growing small & large businesses.
Cloud-based ERP applications, like SAP Business ByDesign and SAP Business One OnDemand, and the implementations of such, are nearly identical in functionality to traditional on-premise solutions. But because there is no capital equipment like servers to buy, and no IT armies to pay, it becomes a very cost-effective alternative - one that many companies are adopting, and doing so quickly. But is it right for your business?
Using a cloud/SaaS-based ERP solution can dramatically lower your TCO (total cost of ownership), reduce your IT footprint by aligning your infrastructure with your business' specific requirements, gain a highly scalable solution, simplify ERP deployment to new employees and locations, simplify upgrades, as well as enable users access to critical business data from any internet-enabled device at anytime, all in real-time.
Forrester, a leading, independent research company, published the following points as to why not only cloud ERP is being widely adopted, but also why it is important for your business' agility and long-term viability.
Lower upfront costs & TCO
- Economies of scale - most cloud applications share resources and costs among large pools of users. Doing so allows companies to save money, allowing them to pass these savings on to their customers, ultimately making them more competitive.
- Virtualization - because cloud solutions utilize virtualized servers, hardware and storage, your business' cloud solutions can be used more efficiently ultimately saving you more money.
- Pay as you go and only pay for what you need - with companies like SAP & Navigator, implementation costs are typically fixed eliminating the worry about never-ending implementations. Also, the solutions are deployed in a way that you only pay for the functionality you need. Additional functionality can be implemented as you go or as your business needs it.
- Reduce hardware and virtually eliminate costly maintenance - most of the costs associated with ERP software is usually not the software. It is the cost of the hardware and IT staff. With cloud-based ERP, the costs associated with infrastructure, services & support are virtually eliminated, saving you more money.
- Run a thin client/application structure - because the software is housed in the cloud, it is not necessary to have it installed to every PC, smartphone, tablet, laptop, allowing you to save more money on leaner, more efficient devices and machines.
Align IT infrastructure with YOUR business' requirements - because you are only paying for the functionality that you need, cloud-based ERP affords your business greater flexibility to better align your technology with your strategies and goals, especially when thinking about fluctuating business needs and conditions. This also allows start-ups and smaller companies to preserve precious capital.
Solution that scales with your business - because your business can quickly and easily "hook" into the cloud, your business can focus on revenue building activities from the get-go. And regardless of how slow or fast your business grows and expands, your company can easily buy more access, capacity, functionality instead of having upgrade costly IT hardware.
Ease of deployment - with cloud-based ERP, all that is needed to access the software is an internet connection. This fact alone prevents your business from having to hire an expert IT staff to maintain your software. When something goes wrong, your business simply calls the vendor to resolve the issue. With the reduction of internal IT issues and headaches, your business can focus on innovation and increasing revenue.
Reduce the costs and complexities of upgrades - with cloud-based ERP, and more specifically SAP Business ByDesign, every workstation and every device in your business gets automatic access to the latest versions of the software as it becomes available, at no additional cost, all at the same time. In addition, these upgrades are pre-planned to occur during a slow period of business or even in the middle of the night. You choose what is optimal for the your business.
Accessibility to your data 24/7 - no longer is it the time when people looking to access their systems remotely requires a VPN connection. So long as you have internet connectivity, you have access. Its that simple.
World-class reliability and security - because SAP utilizes world-class, global security standards and backup practices, you have no need to worry about protecting your most valuable asset - your customers information. Your data is safe and secure in world-class data centers.
In summary, by using cloud-based ERP software like SAP Business ByDesign and SAP Business One OnDemand, your business will benefit from lower costs, better alignment between your technology and your business' needs, better scalability, easier deployment and upgrades, anywhere/anytime access and industry-leading levels of security and reliability.
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