My ERP Musings

ERP, ERP, some CRM and more ERP

How Reliable Will A Cloud Based ERP Be?

With the substantially discussed crash of the Amazon.com cloud solution (in the event you haven’t, you should go and check up on this), it’s obvious the reason why it’s not simply a lack of knowledge that might be keeping businesses from cloud software. Was the Amazon episode a n insular occurrence, might it happen again, and consequently are the cost reductions linked to cloud based ERP solutions worth it?

With all the major companies now introducing, or at least promising upcoming cloud application options, it seems like the momentum of enterprise resource planning is travelling straight to the cloud. There are tons of advantages for firms to leap onto the cloud bandwagon, but do the dangers with the cloud over-shadow the future cost savings?

The upfront implementation and design costs which come hand in hand with on-premises systems will often be too much, especially for smaller companies. The cloud is designed to be less costly with the software as a service (SaaS) monthly subscription model. You only pay for what you require but not anything extra, including no set up costs and organization down time while implementation occurs. This permits firms that could never ever manage to pay for an all out on-premises system to obtain some very efficient software that can end up altering their company for the better.

Cloud based software also removes the charges of important upgrades and maintenance of the solution, which an on-premises system would demand, as it’s all carried out by the provider then upped directly to the cloud, without charge to the user.

Throw in that the cloud offers you access wherever there exists a internet connection and multi-site businesses and off-site working performs that bit more successfully and competently.

No one can guarantee there will not be a failure in the cloud, just like no one can assure there won’t be failures if you maintain your technology internally. The serious point to think out is in regards to out sourcing or maintaining systems closer to home, who might be the best suited to contend with prospective difficulties? Does your IT team have the expertise to get things back in action any sooner than the software supplier?

Continuous dependency on the service is yet another concern. If you place all of your expectations on the same cloud supplier, then you’re basically cornered with the same vendor and precisely the same application. The counter-point to this is that if you pour good money in on premises software platforms, then you’re pretty much doing exactly the same thing, except upgrades and customisation are more than likely going to amount to significantly more in the future.

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One response to “How Reliable Will A Cloud Based ERP Be?

  1. Pingback: Food ERP Software Case Study « My ERP Musings

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