Cloud ERP is an enterprise resource planning (ERP) software that is hosted on a cloud platform using data centers and server farms. It helps companies manage different departments like marketing, finance, and customer relationship management, among others. It consolidates these functions onto a single platform for improved coordination and performance. Cloud ERP operates as a Software as a Service (SaaS) solution, allowing users across departments to send and receive data in real-time using the Internet.

Better security
Today, cloud-based ERP systems are more secure as compared to onsite ERPs because now the clouds are offering stringent security protocols, which make it very difficult to hack or steal data from a cloud-based ERP solution. The debate on which method is more secure is still going on, but the market is seeing more enterprises put their trust in the cloud and this trend is going to see an upward turn in the near future as well.

Increased productivity
Moving to a cloud-based platform increases the productivity of businesses by allowing easy and real-time collaboration of departments and employees. It eliminates the need for one-to-one communication using traditional methods like emails and external drives. The optimization of communication and collaboration processes means the teams perform better and deliver results that are good for them as well as the company. It also allows the team to save time spent on tedious and repetitive tasks and utilize the same for ideation and innovation.

Cost-effective solution
Implementing and maintaining an in-house IT department for the maintenance of servers on the premises is a complicated and costly affair. On the other hand, cloud-based storage and computing costs much less and won’t need a company to hire a team to manage the data and the machinery. Going on the cloud completely eliminates the annual maintenance fee that is spent on the on-site systems along with expensive licenses that need to be purchased for software and hardware. Many cloud services charge per month, thereby making the option of the cloud even more cost-effective.

Agility
Cloud ERPs offer a company flexibility, mobility, and accessibility making it agile. This means a business using ERP solutions cloud for small business will be able to innovate and grow quickly as compared to the ones using the traditional on-site ERP.