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Benefits of Cloud-based ERP system  


Joined: 2 years  ago
Posts: 65
September 8, 2017 3:15 pm  

Benefits of Cloud-based ERP System

Lower upfront costs

Cloud computing substantially reduces the capital expenses incurred by an enterprise in order to implement an ERP system , reduced includes expenses for hardware, user licenses, and implementation, excluding user training and customization . (Cloud based ERP System).

Lower operating costs

Cloud-based ERP lowers operating costs for energy, maintenance, configuring, upgrades, and other IT staff costs and efforts.

Rapid implementation

Rapid implementation is generally agreed to be among the top benefits of cloud-based ERP. It could also contribute to easier change of cloud service providers  and reduced time of providing new products in certain types of business.


Resource pooling and rapid resource elasticity of cloud-based ERP make the infrastructure capacity highly elastic. That in turn enables faster time to market), high level of strategic flexibility and improved competitiveness. This feature is reported as a possible advantage that is particularly relevant for SMEs in competing with large rivals.

Focus on core competencies

Cloud-based ERP and other enterprise applications allow focusing the resources that would be used to maintain an IT department on other essential areas of business. In some cases it mainly results in reduced pressure on internal IT department which can focus on servicing core competencies .

Access to advanced technology

Cloud-based applications often enable access to specialized technology and advanced computing resources that otherwise would have not been accessible to SMEs.

Rapid updates & upgrades

Cloud-based ERP systems usually get faster updates and new functionality than traditional ERP systems.

Improved accessibility, mobility, and usability

Besides their inherited features of mobility and accessibility cloud-based ERP and other enterprise applications can usually boast higher levels of user friendliness and usability than other types of ERP.

Easier integration with cloud services

Using benefits of SaaS shared infrastructure, companies that adopted cloud-based ERP may get relatively inexpensive integration with other cloud services once respective cloud providers have integrated their infrastructures.

Improved system availability and disaster recovery

In many cases SaaS providers ensure measures such as backup routines, fallback and recovery procedures, conditioned power etc. of higher quality than most SMEs do in-house.


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