What Is Cloud Based ERPs ?
The cloud is a network of servers that store data. Each server has its own function. Some servers run applications, or “deliver a service”, while others just simply store data.
The main benefit of the cloud is that can be accessed remotely through the internet. So, you can access an application or stored data from any computer that has an internet connection.
So, a cloud ERP means that the Enterprise Resource Planning system is hosted on a platform, or servers, that can be accessed through any web browser.
Instead of opening up a program installed on your computer desktop, you can just access your ERP system by typing it into your web browser.
Advantages and Disadvantages of Cloud ERPs
Small wonder, considering the critical the information stored in an ERP system—including company financials, corporate trade secrets, employee information, client lists and more.
But while buyers once were wary about the security of cloud-based software, many are becoming less skeptical today (evidenced by the adoption rates above).
Reputable cloud vendors have strict standards in place to keep data safe. To further ease concerns, prospective buyers can seek a third-party security audit of a vendor they’re considering. This can be especially useful if the vendor is less well-known.
Most cloud systems enable easy mobile accessibility, and many even offer native mobile apps. But this ease of access also comes with greater security considerations, especially if employees are accessing company files on their personal mobile devices.
Similarly, more accessibility means less customization—and cloud ERPs offer less flexibility for businesses that seek to tailor their system to their hearts’ content. But organizations with less specialized needs, such as general consulting firms, can get by just fine with a cloud system’s out-of-the-box capabilities.