Cloud ERP system (such as Netsuite ERP system) is an enterprise resource planning (ERP) system that runs on a software provider’s cloud platform. And this cloud technology allows companies to access their ERP system from anywhere in the world.
First of all, we know that ERP systems work with a company’s resources, stock, supply chain, CRM, and finance departments.
Basically, every employee needs access to the ERP system during the day to execute any task. But, local ERP systems may require a person’s presence in the workplace. Sometimes it asks you to use a company computer.
On the other hand, an ERP system should be accessible to all business divisions. Furthermore, it should theoretically give consistent service.
The main difference here is that the ERP software becomes available and functional via the internet. All required is an internet connection and a browser, even for remote workers! All in all, cloud-based ERP meets these requirements.
On-Premise ERP vs. Cloud ERP
Let’s begin by understanding the differences and meanings of the terms.
Cloud-based ERP refers to enterprise resource planning software that is maintained off-premises. They are primarily on ERP service provider’s servers. It means that you can open it from your browser.
On-Premise ERP refers to software installed and controlled locally. This management takes place on company computer servers. Also, you will need employees to take care of it.
Why are cloud-based ERP solutions beneficial to small businesses in particular?
Costs of infrastructure
A highly prioritized benefit of a cloud-based ERP solution is the decreased overall expenses.
Hence, we can say that cost-increasing factors can be deal-breakers for SMEs.
Cloud ERP is approximately 30% less expensive than on-premise ERP.
In this way, businesses benefit by avoiding hardware expenditures and additional costs for IT staff, etc.
So, how do they solve their ERP software-related issues? Through direct contact with their ERP system service providers.
Fast and Actionable Solutions
Time and efforts spent on a new ERP system deployment is a significant problem. Consequently, it can have a direct impact on business downtime and efficiency.
Businesses who would choose cloud ERP can accomplish the deployment quickly. In this way, they begin to work in the system faster.
Because they won’t have to deal with processes like hardware selection, installation, or hiring and training IT professionals.
Accessible for everyone from everywhere
Users of cloud-based ERP systems can access real-time information from any device. For small businesses working with diverse teams, it is a feature more than needed!
Scaling without fixed costs
Cloud-based ERP solutions make it simple to grow a company without worrying about deploying more servers. You will not worry about accommodating new users, regions, or subsidiaries. The cloud ERP system grows with the company. And you can easily add features when the firm grows in time.
You will only need to change your plan in the service you subscribed to or pay for additional features/services you need.
Upgrades are not going to be a big deal
Your cloud ERP system provider will manage upgrades and improvements on a continuing process. In this way, they ensure that customers are using the most up-to-date technology.
It takes longer to update or upgrade on-premises ERP software. The process may even necessitate the hire of various subcontractors.
On the other hand, updates to Cloud ERP can take less than an hour. And they usually perform these works after business hours.
NetSuite ERP as your ERP Malaysia Partner:
NetSuite is a cloud ERP software that combines financial and operational activities for enterprises across various industries.
Its cloud-based ERP system automates all of the varied departmental demands we discussed at the start of the article. And NetSuite ERP promises increasing efficiency while lowering supply chain expenses.
Lastly, if you need an experienced ERP system Malaysia provider, contact us now! Or if you are just curious about how NetSuite ERP can help improve productivity.
