As we continue to push forward, cloud hosting is very much becoming a dominant player for business data. Many legacy systems are starting to age-out and need to be replaced. For many of these businesses, it can be difficult to finally make the call to upgrade, let alone migrate to the cloud. If the company is accustomed to managing everything in-house, that pass-off can be a bit daunting. Once you get past your initial “what-ifs” of making the switch, a cloud-based ERP system has many benefits over traditional on-premises server.

Implementation

One of the primary drivers for business decisions is cost. The initial implementation costs of cloud ERP is generally cheaper than the hardware for a server to run on-prem. The implementation is also much faster. The recurring monthly costs of cloud hosting may differ and be higher depending on the number of users, but they are consistent and much easier to plan around. With on-prem servers, businesses have some normal monthly costs associated along with the potential for hardware malfunctions and issues requiring expensive repairs. By not having to worry about the servers, your IT team can spend time focusing on other tasks. In particular for smaller business that don’t have the capacity for an IT team of their own, a cloud ERP system saves the money and time requirements of hiring and training.

Licensing

Cloud ERP is more flexible in terms of licensing and growth. It can be molded to fit exact specifications, and continuously updated as needed. On-prem servers are limited by their hardware. For growing businesses, it can be a nightmare to outgrow the ERP system. Having to upgrade the server is time consuming and expensive. It also can limit a business’ ability to continue functioning within the ERP until the upgrades are installed. With cloud ERP, storage is easy to monitor and upgrade the licensing as needed. Companies don’t need to worry about upgrading the hardware by themself. The per-user licensing of cloud-based ERP systems like Business Central also lets business only add the licenses they need. Licenses for on-prem servers may be limited to set bundles.

Security

Security breaches are detrimental to any business. The security of data stored on the cloud is often much higher than is possible on an on-prem server. Data is constantly backed up to prevent losses and updates to security are always being worked on and released. Cloud ERP vendors are able to focus on the security of the data hosted in their cloud. While it may seem scary to trust important business data to a cloud vendor, they have strong obligations to maintain tight security for their customers. Data also does not need to be downloaded to devices. This means that a lost device isn’t a potential leak of data.

System updates

Cloud ERP applications always stay up to date with cloud hosting to keep new features and fixes flowing while maintaining data security. ERP hosted on the cloud can be updated at-will without the long, arduous process often seen for on-prem servers. Keeping the system updated is a key security feature as well. Many of these updates will include security patches for potential vulnerabilities.

Cloud ERP systems are much more flexible in their use as well. On-prem servers will typically limit user access to those on the same network, and the data can’t be used unless a copy is made and downloaded to the device. However, with cloud ERP, works can access the system from anywhere with an internet connection. In an era of increasing hybrid and remote working environments, workers can operate from where they feel most comfortable.

Get Started With Microsoft Cloud ERP

There are a lot of uncertainties in upgrading something like your ERP system that is a core piece of business functionality. Migrating to the cloud is something that can provide businesses with enhanced flexibility, lower costs, and tighter security, among many other things. At Syvantis, we are pioneers in cloud ERP, specializing in Dynamics 365, Dynamics GP, and Dynamics NAV, and can help your business to make that transition.