Cloud Computing

When firms choose the enterprise resource planning system, a key aspect they consider is if they should utilize the cloud or on-premise solution. ERP systems offer extensive facilities and benefits to the entire business. ERP systems aid a firm transfer and share information and data across all functions units outside and inside the firm. Currently, cloud-based ERP is more widespread, and numerous vendors offer different cloud deployment options.  Cloud ERP is an ERP applications suite delivered via the internet to users, generally accessed through a standard web browser. The prime choice between the on-premise or cloud-based ERP will depend on the business strategy and firm structure. However, cloud-based ERP, just like other things, have their disadvantages and advantages. Below are some cloud computing benefits.

Easy to maintain. A key cloud computing benefit is that one never needs to hire an internal IT team for maintenance. Instead, the vendor will do it for the firm, maintaining its hardware and updating backups automatically.  Since the firm will not require using its hardware, maintenance becomes the vendor’s accountability. Thus, helping the firm save a lot of money.

Scalability. A key appealing feature of cloud computing ERP systems is scale as a firm’s needs change quickly. However, for the on-premise software, it is a labor and time-intensive process to scale and upgrade.

End-user adoption. Cloud computing technology has modern user interfaces, making them easier to adopt than the on-premise system, so employees might be quicker to accept software changes.

The following are the cons of cloud computing.

Security concerns. The prime drawback of cloud computing is that the provider could access the firm’s data. Many firms have sensitive data, and accessing it needs a high clearance level. That is the key reason why many aerospace and defense vendors choose the on-premise system.

Cost-saving. Whereas the initial cloud technology costs are lower than the on-premise system, subscription costs increase with time. Many leaders hate that since they are more worried about capital expenditure minimization than reducing operating costs.

Limited customization. Customization options in cloud computing technology are restricted, making some manufacturers choose the on-premise software for their specific operations.

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