Cloud ERP solutions play an essential role in digital transformation, enabling organisations to adapt to new strategic and operational approaches that drive business growth in the modern economic landscape. From cost savings, faster implementations and scalability to automatic upgrades and flexibility, there are many cloud ERP benefits that make them a better choice than on-premise systems. Here are seven reasons to make the switch today.

Faster implementation

Compared to similar systems deployed on-premise, a cloud ERP eliminates the substantial upfront activities - and costs - related to installing hardware and software. Instead, your IT team and implementation partner can immediately begin configuring your new ERP, with a focus on shaping the solution around your business processes. That means faster implementation, less disruption to your operations and minimal time out of market.

Lower costs

Cloud ERP benefits also include lower costs. With on-premise solutions, a considerable percentage of IT budget is invested in the maintenance of ongoing software and related hardware, servers and other necessary facilities. Cloud ERPs don’t attract these costs. This alone, generates a significant reduction in spending overall. And because the vendor is responsible for applying patches and fixes to the software, cloud ERPs also require less operational effort and IT resources, enabling your team to focus on more tasks that generate more value for your business.

Seamless scalability

Maintaining excess server and computing capacity in an on-premise ERP to accommodate future needs isn’t a luxury most businesses can afford. This makes scaling your ERP to meet your growing business needs a complicated and expensive process. In comparison, the rapid elasticity of cloud ERPs means that the platform can instantly scale to meet increases in transaction volume, storage requirements or network bandwidth - allowing you to jump on new business opportunities as soon as they arise.

Agility and flexibility

Outdated or legacy ERP solutions can also impede growth due to limited functionality. When your organisation needs to add new warehousing facilities, enter new markets or assimilate a new acquisition, this can involve implementing new systems, integrations or complex customisations, which take considerable time and effort. Cloud ERPs offer a much more flexible solution, allowing new functions and features to be added via modules quickly and seamlessly. Additionally, new updates that expand functionality can be implemented quickly without significant downtime or IT resources.

Automatic software updates

On-premises software can become unwieldy, with customers using different versions of operating systems, databases, integrations and even source code. This makes system upgrades, integrations and patches exponentially more difficult to manage with every cycle. In comparison, cloud ERP solutions such as NetSuite have only one software version and upgrades occur frequently and automatically, with little or no action required on your part. You can be confident that your organisation is always operating on the very latest version of software, mitigating the risk of the system becoming obsolete over time and allowing you to allocate IT resources to activities that drive more value to the business.

Easy customisation

Customising on-premise systems is often resource-intensive, risky and expensive - and upgrades can cause significant issues or break your system entirely. As a result, many businesses choose to remain on older versions of the software or avoid customisations altogether, limiting their ability to innovate, improve processes or gain the advantages of new features. Cloud ERPs offer much simpler customisation capabilities around specific use cases. The innate extensibility allows the customers to build extensions, seamlessly connect with apps or develop entire custom applications. Unlike a traditional on-premise system or a patched together set of business systems, these modifications are carried forward with new versions of the system, ensuring business continuity.

Hybrid workforce-ready

If your organisation was using a localised on-premise ERP solution when COVID-19 pandemic began, you will know all too well the challenges this presented during lockdowns. This is because traditional ERPs often require users to be on corporate networks before gaining access to shared databases. Without access to the systems that drive core business operations, remote work becomes impossible. Alternatively, cloud ERPs give your people access to your critical business platforms and data on any device, anywhere. As hybrid working becomes the norm for many businesses, reliable and smart cloud services will become increasingly critical for your workforce’s ongoing productivity and communications.

Ready to make your operations more efficient?

The cloud ERP benefits of increased flexibility, scalability and functionality will not only improve your business operations, but also reduce the pressure on your IT team. To discuss how a NetSuite ERP can empower your people, reduce costs and drive growth, contact us today.

Annexa is a leading NetSuite partner with extensive experience designing and implementing comprehensive and customised business systems, including payroll solutionsfinancial managementwarehouse management and ecommerce solutions.