To get a view of the future scenario of enterprise resource planning software, it is necessary to understand the present scenario of ERP regarding its optimum utilization, ignored areas and untouched sectors. ERP has become an integral part of business today due to its proven benefits and huge capacities, but it is very easily evident that there is much to be explored and need to give up a previously set goal.
Gone by are the days when cloud erp software was meant for large and big business organizations only which have the capacity of investing money in millions. Today with the introduction of SaaS model, ERP on-demand and cloud computing, ERP software has come in the reach of small and medium-sized companies which have opened gates for ERP vendors to capture new markets.
Cloud computing is not a new term for the IT industry. Many mid-size companies and big organizations are adapting this technology to enhance their business capabilities. Cloud computing can easily transform the complex web of business technologies into a simple one if applied efficiently. The strength of this technology lies in its flexible nature and easy-sharing capability. Cloud computing as the name suggests, can take care of various applications running on different local computers from a third party.
You can also explore models like software-as-a-service (SaaS) in the cloud in contrast to the conventional on-premises software application.
Cloud ERP lowers your business total costs as well as flat-fee prices and there is a high level of security, privacy, easy accessibility and integration. You can also move your data at any time while new features and functions are added continually. It is a flexible and cost-effective option for medium-sized businesses because of its pricing model that comes with various alternatives like paying a flat fee for unlimited users which can boost return on investment (ROI).
Furthermore Cloud ERP provides application scalability and reduces cost on hardware. The hassle of managing hardware, software and upgrades is reduced while upfront expenses are also reduced. You can create an internal cloud to reduce constant hardware costs even as you maintain a greater control over integration as well as has local access to your data server.
You will also save money and time on installation and maintenance. Cloud ERP delivers access from any device on any platform devoid of costly and intricate VPN and remote access software. It can be managed from a central data store so that you can have access to real-time data and dashboards from anywhere. You will also have the opportunity to make use of it in multiple locations if you have branches.
Also, due to its multi-tenancy in nature, cloud ERP is not costly. The cost of an upgrade and product update is also reduced and the swapping between flexibility and cost gives a good reason for a multi-tenant infrastructure and a multi-tenant platform. However, the multi-tenancy takes place at the infrastructure, platform and application levels.
Big companies can own a server containing many servers as a cloud data center. This is referred to as internal cloud, but if a company has only one server, there will be limitations in the ability to add capacity. Hosting is another method of outsourcing IT operations and it can be only effective if the software does not have any client components.