What is cloud based ERP & How does it work

If you are a small or medium-scale company, you might be searching for all the innovative possibilities to make the business operation more productive. Also, you want to make those solutions to be affordable. Well, in that case, switching to cloud ERP software can be one of the best moves you can make.

What exactly Cloud based ERP systems are and how do they work?
In simplest terms, a Cloud based ERP a SaaS (Software as a Service) through which users can access Enterprise Resource Planning software. The access for cloud based ERP systems is granted through the internet. One of the most notable characteristics associated with Cloud ERP software is that they pose very low upfront costs. On top of that, such systems allow companies to use the most impactful applications regardless of the time and location.

Basically, the main difference between Cloud ERP software and on-premises ERP is the physical location of the software.

In general, the Cloud is a very useful option for both small- and medium-scale businesses. That is particularly because Cloud based ERP systems allow those companies to access sophisticated applications without costing a fortune. Besides, they don’t require an upfront expenditure for any additional hardware and software to run. As long as a business can end up with the right kind of Cloud service provider, they can aim high and expect a substantial boost in productivity.

Using the right cloud provider, a company can rapidly scale its business productivity software as their business grows or a new company is added.

Why do you need Cloud ERP software?
So, the big question is that why does your business need a Cloud based ERP system? Are they as useful as they claim or is it yet another liability? Read the below-mentioned points to learn about it.

• They offer excellent flexibility
  It is true that the concept of ERP systems gained immense popularity since its inception. However, during the early days, ERP systems alone didn’t have appreciable flexibility. However, as of today, things have dramatically changed since ERP systems became ‘Cloud-borne’. As a result, companies of different scales can use these systems based on their requirements.
• They are cost effective
  Cloud-based ERP systems are offered in the form of services at up-front costs. As a result, you can expect a cost-effective service.
• Perfect scalability
  Companies can choose the scale of the ERP system at any given time to match the exact requirement. That means, companies can either upgrade or degrade their plans without bearing extra costs.
• Highly portable
  Since the systems are based on Cloud, they can be accessed from anywhere regardless of the time of the day. This can be one of the best uses of a cloud-based ERP for a busy small- or medium-scale business.

Having considered all those aspects, it can be said that cloud based ERP systems to be an integral part of any business that has positive plans for their future.