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Why are Businesses Moving to Cloud ERP Technology?

Enterprise resource planning (ERP) solutions are frequently used by businesses to integrate and organize information throughout the firm. Historically, businesses put Cloud-based ERP software on their servers and other infrastructure, now called on-premises.

While these on-premises solutions have helped organizations function better and resulted in significant advantages, there are several areas where they need to catch up, most notably cost, agility, and maintenance. Cloud-based ERP systems eliminate many challenges associated with on-premises solutions and provide several advantages over their on-premises equivalents.

Cloud ERP Software System came as a solution that provided the pay-per-use facility for the computation and storage resources. This technology enables the users to use remote machines so that the client can get as many computing or storage resources as they need. This way, both excess and limitation of resources can be eradicated, and a major part of revenue saved

Also Read: The Powerful Impact of Cloud ERP for Singaporean Businesses


What Is Cloud ERP Software? 

The term ‘Enterprise Resource Planning (ERP)’ systems refer to such integration of applications that can manage the business. Recently, an enhanced and updated version of these systems has been fabricated and known as Cloud ERP systems. These systems enable organizations in accounting, operations management, and reporting.

Cloud ERP systems are more secure and efficient management systems that store employees’ data in the cloud. This means applications can access the required data from anywhere, and demanded data would be accessed within no time. The storage ability can also scale itself according to the system’s needs, and applications connected with it can easily send a large amount of data.

Using cloud computing with ERP systems will reduce IT support service costs. An organization using the ERP system need not worry about the hardware on which the system is deployed. On-demand payment saves the company from ‘one-time’ expenditure, and cash saved from hardware buying can be utilized for other initiatives.

In pursuit of the answer to the question ‘of why modern businesses are moving towards Cloud ERP systems, we have seen that ERP systems in their traditional form were quite useful for the companies. Still, there were some concerns about the technology related to their deployment. Introducing cloud computing as a solution has not only solved many problems in the older versions of ERP but also has come up with some tremendous benefits that were impossible without it.

Why Move to the Cloud 

Customers that use on-premises systems must manage the servers and other gear in their own data center. These on-site solutions frequently need a large investment in hardware, software, space, and employees to implement and maintain. Upgrades are also difficult since many organizations substantially adapt the software to meet their requirements.

Cloud ERP systems provide a more efficient method, allowing businesses to use massive processing capacity. Shifting from on-premises to cloud ERP often results in cheaper upfront costs, faster installation, and less physical and employee resource use. Using Cloud Storage technology enables the users. Because cloud-based technologies are very adaptive and scalable, they may help businesses become more nimble. Because it offloads all effort related to bug fixes, patches, and upgrades to the vendor, it also allows executives to focus on operating their organization and discovering new ways to expand.

Reasons to Move to Cloud ERP

There are several reasons why a company should switch from on-premises to cloud ERP, but here are a few of the most important:

Cost-cutting measures

Maintenance and support costs can still be cheaper when you include maintenance and support, which is generally 20% of the initial licensing prices. Eliminating these expenditures might be critical for smaller firms that cannot justify the high initial cost of traditional ERP systems.

Upgrades and service

Businesses don’t have to worry about ERP software upgrades or maintenance because the vendor hosts and maintains the system infrastructure. The supplier maintains the database, servers, and other infrastructure and automatically distributes new updates or patches to all clients, ensuring the software is safe and under all applicable laws and regulations. A single vendor addresses any difficulties that may emerge, enhancing responsibility. Furthermore, being a subscription-based service, cloud-based ERP suppliers frequently give 24/7 assistance to address issues as they arise. Because their business is predicated on the availability of their service, cloud ERP providers can often provide more uptime and security than a corporation can do with in-house IT workers.

download skema harga software erp
download skema harga software erp


Cloud ERP solutions are available from any device — computers, cellphones, and tablets — with an internet connection and a browser. This enables multiple departments or business units to collaborate across corporate campuses or nations. Cloud ERP is less expensive to access since there is no need to purchase and maintain a VPN or emulation software.


Some companies still hesitate to store their financial data on the cloud, citing security concerns. While some may consider this a drawback of cloud-based ERP systems, the security of cloud-based software is frequently greater than that of on-premises ERP systems. Today’s cloud technology is very safe, with cutting-edge encryption, multi-factor authentication, and other key security features incorporated into every system component. Furthermore, cloud ERP systems are housed in secure, centralized locations, lowering the danger of physical theft. Again, because of economies of scale, cloud ERP providers can often commit more resources to application, database, and physical security than a single organization.


Cloud solutions may be set up and deployed far faster than on-premises systems, with most taking less than 100 days. This is because the seller is in charge of activating the hardware and software. This saves downtime while the transfer is done and helps firms to shift swiftly to meet rising demand or adjust to a fast-changing market.

Also Read: Best Cloud ERP Solutions for Your Business

Advantages of Cloud ERP

For many companies, the transition has been profitable. These companies often highlight the ease with which cloud ERP can be adopted, the significant cost reductions, and how it promotes growth.

Rapid Implementation

Companies that choose a cloud ERP system will benefit from a faster and easier setup. It helps businesses to get up and running quickly with scalable functionality that allows for simple modifications and can support new projects.

Savings on expenses

Cloud ERP may provide considerable cost reductions in terms of functionality and TCO. Right Way Medical, for example, requires replacing a patchwork of five systems, including QuickBooks and Excel, with a unified cloud ERP. The firm currently relies only on NetSuite and its unique fixed-asset solution. NetSuite does the job of two to three people and shortens the company’s billing process by several days, saving time and money.


Choosing the correct cloud ERP provider and implementation partner will help guarantee a smooth transition from on-premises to cloud ERP. HashMicro has assisted numerous organizations in moving to the cloud and realizing the benefits of this deployment approach. HashMicro’s ERP software enables enterprises to gain a holistic perspective of their company and create operational improvements in finance, supply chain management, human resources, and customer management.

Cloud ERP unites siloed business areas, allowing enterprises to solve problems, enhance procedures, and achieve goals. Finally, there are four major advantages of using cloud ERP:

  • Enables organizations to respond quickly to changing market needs.
  • Enables increased productivity, revenue, and growth at a low cost.
  • Enables enterprises to scale up and scale down their IT infrastructure and applications as needed.
  • Promotes growth by boosting the viability and capacity of new goods and services.

These advantages make it a worthwhile investment for several businesses in several sectors. Over time, more of them will see the benefits of company management and make the switch. If you want to know more about this cloud software, there is also a free demo of this ERP software here.


Interest in getting savvy tips for improving your business efficiency?

HashMicro is a software development and enterprise resource planning (ERP) company. Consequently, we often provide articles about ERP and other systems that all businesses need.

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