EN News TypeExpert Information - 19.05.20

Cloud ERP: Seize It, Don't Hesitate

6 solid reasons for an ERP from the cloud

While large corporations push their cloud strategies, other companies remain hesitant. However, it's especially the medium-sized companies which benefit from this form of operation. 6 reasons which cannot even be denied by the strongest sceptics.

Every third medium-sized company is lazy in the cloud department: This can be concluded from the results of a Lünendunk study. 37 percent of companies with up to 500 million euros in sales don't have a cloud migration strategy for their IT and don't plan on drawing one up in the medium term. "Concerning the core of the corporate IT, the ERP system, the numbers are even higher," said Michael Bzdega, Solution Architect Business Cloud at the ERP provider proALPHA. The software provider, offering its ERP complete solution on-premise as well as in the cloud, lists 6 solid reasons for using the cloud:

  1. Relief in Daily Business
    From the Industrial Internet of Things to AI and Machine Learning: The list of strategic initiatives for the IT is constantly growing. Of course, the daily IT operation needs to continue smoothly. Cloud solutions, be it the private cloud on-premise or a hosting offer, help to relieve the own resources since external providers take on the monitoring and the maintenance of the infrastructure, including updates and patching of the ERP application.
  2. Lower Investments in the Long Run
    Costs are always a strong argument. In this context, most people only think of the saved initial investments for servers and system software. The hosting by a cloud provider also has a long-term effect, though: Nowadays, hardware and software become obsolete so quickly that medium-sized companies can barely keep up. The datacenter of the provider is technologically always up-to-date.
  3. Increased Cyber Security
    Cloud initiatives always had to and still have to defend themselves against the lacking trust toward the security of their sensitive data. Many IT managers in medium-sized companies are convinced that the data is less vulnerable in their own datacenter than in the cloud. This is unjustified, though: In the Cloud Monitor 2019 of Bitkom, 37 percent of the interviewed parties acknowledged that they had registered data security relevant incidents on their IT system in the past year. In contrast, only 26 percent of the public cloud users reported such incidents. The reason is simple: Since their whole business model depends on it, professional hosts in Germany heavily invest in the physical security of their datacenter, in backups, emergency management, and system stability. They also protect themselves in the best possible way against malware and hacker attacks and possess the necessary tools and processes to respond to new threats as soon as possible.
  4. Fast Implementation and Adjustment
    Cloud solutions are again and again faced with criticism regarding their lack of adaptability to company-specific business processes. However, this argument is not current anymore. Nowadays, ERP systems from the cloud are just as easily adaptable as modern on-premise software. What's more: Since cloud systems build on already existing infrastructure, their implementation is usually faster. This means that companies are productive after only a few weeks.
  5. Leverage for Expansion and Growth
    This short time-to-solution is especially perceptible if companies are expanding and growing quickly. It is important to integrate new locations at home and abroad quickly and easily, just like additional users. Instead of acting as a brake, a cloud ERP turns the IT into a business enabler.
  6. Key to Increased Mobility and Agility
    The reasons why more and more employees decide to work on the move or from home are complex – from shortage in skilled labor to individual working time models and climate protection. What's clear, however: Remote, flexible working is becoming more and more important. And such flexibility can be achieved with an ERP from the cloud which provides the employees with their personal working environment wherever they might need it.

If a company decides to seize the opportunity of working from the cloud, the next step is to find the perfect operating model. An ERP system in the Business Cloud can be managed in various ways: from the own or hosted private cloud to the complete outsourcing with SaaS, whatever the company requires.

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Susanne Koerber-Wilhelm will be happy to answer your questions and provide you with further information about proALPHA.

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