Hailed as a game changer, cloud ERP has been around for 25 years or so, enabling companies to migrate their data from a traditional on-premises set-up to a cloud-based system where it is accessed via a web browser. With the pandemic driving more companies to cloud-based operations to increase their resilience and agility, Garner anticipates that cloud will account for 14.2% of the total global enterprise IT spending in 2024, up from 9.1% in 2020. Since it was first introduced, the benefits of managing data in the cloud have continued to intensify. Here is a brief synopsis of some of the main benefits companies realize when moving to a cloud-based ERP.
Increased Scalability and Flexibility
As a business grows, a cloud-based ERP scales with it to accommodate this growth. Compared to a traditional on-premises solution, it is much more scalable and can flexibly adapt to the continuously changing needs of the business, such as seasonal fluctuations and supply chain disruption. Infinite scalability gives organizations the ability to handle ever-increasing data volumes and user demands, without disrupting business operations.
Lower Total Cost of Ownership
When a company moves to the cloud, there are huge savings to be made on the hardware and system infrastructure, with the ERP provider taking care of all the data storage requirements. In exchange for a software license fee, the ERP provider also carries out the necessary application maintenance, bug fixes, upgrades, and security enhancements, which means that fewer in-house resources are needed for these tasks compared with an on-premises solution.
Enhanced Data Security
Reputable ERP providers like SAP have access to extensive security resources and expertise, and implement robust security measures to protect data in the cloud and prevent security breaches such as Denial of Service attacks. The package of measures ranges from advanced encryption, regular backups, and vulnerability testing and disaster recovery mechanisms to ensure business continuity. Any gaps in security can be patched at lightning speed and far quicker than with an on-premises solution.
24/7 Remote Access
An increased number of employees are now working remotely and with a cloud-based ERP solution they can securely connect in real time to critical business information and applications at any time of day. This round-the-clock availability of data not only increases productivity but also allows for greater collaboration among teams that are geographically dispersed.
Integration With Value-Adding Partner Systems
Besides the general benefits of transitioning to the cloud to increase resilience and agility, companies that embrace cloud-based ERP can also benefit from seamless integration with partner systems to further enhance ERP performance. Data Migration International has been working with a number of ERP systems, including SAP, Infosys, and JD Edwards, for many years, providing critical data migration support for customers that choose to move to the cloud.
With DMI’s help, they have been able to massively reduce their operational data volumes, archive historical information, and shut down costly and high energy-consuming legacy systems. With migration playing such a big role in the move to cloud-based ERP operations, it’s important to get it right from the start, so you can maximize the benefits of the new ERP environment while further reducing operating costs, data footprint, and energy consumption.
Contact the data migration experts at DMI to find out how they have helped companies in their transition to the SAP S/4HANA Cloud and other cloud-based ERPs.
Author: Philip Carvalho
Regional Sales Director UK, Data Migration International