Cloud-based computing (also called Software as a Service or SaaS) enables users to access software applications that run on shared computing resources (for example, processing power, memory, and disk storage) over the Internet. These computing resources are kept in remote data centers dedicated to hosting various applications on multiple platforms.
Cloud ERP is accounting system software as a service that enables users to access enterprise resource planning (ERP) software over the Internet. Cloud ERP generally has much lower start-up costs, because computing resources are rented by the month rather than purchased outright and maintained on premises. Cloud ERP also gives companies access to their business-critical applications at any time and from any location.
While technically the only difference between cloud ERP and on-premises ERP is the physical location of the software, there are other significant differences. Here we explain some of the key features and benefits of Cloud ERP software.
The cloud is particularly valuable to small and medium-sized businesses (SMBs) because it provides access to full-featured applications for accounting information system at a reasonable price without substantial initial hardware and software expense. With the right cloud provider, a company can quickly scale its business productivity software as its business grows or a new company is added.
The benefits of cloud computing
Cloud ERP has been shown to reduce costs in many ways because:
· Avoid the upfront costs of the entire IT infrastructure, such as hardware and data servers.
· Reduces IT support services because the data center provides IT support
· Eliminate upfront payment for application software licenses in favor of a monthly fee
· It reduces the cost of maintenance and support of those applications, since the cloud provider handles the updates and improvements.
The most important benefits of Cloud ERP go beyond cost savings and include:
· Paying only for the necessary computing resources
· A fixed monthly rate so that companies can use their cash in other business initiatives
· Leverage ERP cloud applications faster as hardware and software installation is not required on servers or user devices
· The ability to adjust the amount of cloud service as a company's computing or storage needs fluctuate.
· Have confidence that your data has been backed up and that a disaster recovery plan is in place
· Avoid attacks on the company server because the data is not stored locally, but in the cloud.
· Accessing the system from anywhere makes it easy for a business to expand geographically, since the Internet is everywhere and there is no need to deploy hardware and software in remote locations.
There are many benefits of cloud ERP computing, but not all cloud ERPs are created equal. To learn more about the differences, read blog "Cloud Accounting ERP Software vs Local-Host Accounting ERP Software" on QNE website. This blog will help you understand the different types of cloud ERP models; determine which model will best align with your business strategy, workloads, performance, and security needs; and learn how to evaluate different cloud ERP solutions.