Understanding the advantages and risks of ERP in the cloud

Changes in IT infrastructure have spurred a shift in business software implementation strategy. Many ERP systems are no longer installed into traditional environments and companies that properly adapt to these developments are experiencing more successful ERP projects. 

In the past, ERP systems existed on local machines. They were installed into desktops and data was stored in physical on-site servers. Today, cloud computing is changing the way organizations operate, as it allows data and applications to be stored remotely, thus increasing efficiency and alleviating the strain on local systems.

ERP solutions can be implemented into the cloud, which allows end users even greater access than what they had with local systems. One of the primary advantages of a cloud system is that applications and data can be accessed from a number of different devices and platforms. An article in the online publication Cloud Tweaks addresses the benefits of ERP in the cloud, but warns organizations to take caution during the implementation process.

"Offering a host of benefits in terms of cost and convenience, cloud ERP is growing in popularity – more and more vendors are offering cloud solutions, which can be customized, for a variety of industries, and needs," the article says. "However, many companies have made mistakes in implementing cloud ERP systems, and these mistakes can be costly in terms of budget and staff time."

Installing ERP in the cloud requires a substantial amount of careful planning. As is the case with traditional installation, preparation can help alleviate the risk of going over time and budget constraints. Moreover, understanding the advantages and limitations of a cloud environment will help organizations deal with any potential issues they might encounter along the way.

Ultimately, working with an ERP solutions provider can help companies obtain the skills, knowledge and tools needed to ensure a successful ERP installation.