Cloud computing is becoming a more popular option for IT departments to provide software and services to their customers and partners. 

According to data from the American Enterprise Institute, Cloud Computing Enables Modern Manufacturing: 90% of global businesses use cloud computing in some form or another, Gartner also reported that 40% of North American companies expect to invest the bulk of their new or additional resources into cloud technologies.

5 Reasons You Should Consider Moving to Cloud ERP

You've probably seen or learned about cloud ERP software if you're a decision-maker in a manufacturing or distribution-oriented business. You may have thought about it but are unsure whether to take the plunge. Cloud technologies can speed up sales and purchase processes and offer a cost-effective and convenient alternative to ERPs. Below are 5 reasons that 'the cloud should be part of your business strategy after Covid-19.

The lower total cost of ownership (TCO)

Although cost is not the only factor when moving to a cloud ERP, it can be a major reason for your company to make the change. Businesses save money by not purchasing hardware. They also save money by hiring technicians to manage and install the device. The cloud provider handles a lot of this. Many distribution software versions now include cloud technology, particularly in areas such as marketing and human resource management.

Reliable security

ERP software and systems can store large amounts of sensitive company data such as customer lists or payment records. Security breaches can result in lost sales and consumer trust. Cloud adoption has been hindered by security concerns. Many IT companies believe cloud systems are less reliable and more secure than traditional on-premises solutions. The perceived risk gap is slowly disappearing.

A September 2019 survey of security professionals from the United States and Britain found that 61 percent of respondents believe there is no risk of security breaches in cloud environments. It is because cybersecurity is a highly specialized field and hackers can only access the system through one fault. Cloud services can provide protection and enforcement personnel with much greater experience than what you can create in-house.

Less maintenance

Cloud ERP solutions are easy to deploy and can be used immediately. IT workers spend less time managing the system, which allows them to concentrate on more strategic tasks. The software vendor installs patches and upgrades to make sure you have the latest version of the software and that you have instant access to the latest features and functionality. Cloud providers are also responsible for adding storage space, updating nodes, and providing power and cooling to servers.

Quick implementation

Implementing an ERP system on-premises can take several months or even years. This includes the phases of need evaluation, preparation, business processes development, ERP collection, hardware purchases, and installation. Cloud ERP systems can be set up in less time than traditional ERP systems. Cloud ERP eliminates the need to purchase and install hardware as well as configure and integrate applications into ERP systems. A cloud ERP system can be live in as little as a few weeks depending on the situation.

Real-time data analytics

The pace of business is rapid and decision-makers need the most current information. If you don't have the financial resources, manpower, and experience to support an advanced on-premise program, this can make it difficult. Cloud ERP systems typically use the latest data analytics software. Cloud ERP systems can be scaled up and down as needed, reducing the need for additional hardware to run analysis. The cloud architecture allows the company to make decisions from the shop floor up, regardless of whether they are about quality control or upselling customers.

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Modern ERP vendors offer a cloud version for their products. Accenture's 2019 survey found that 78 percent of UK CIOs believe the cloud is essential to their overall IT strategy. Half of them already use hybrid cloud ERP platforms. Cloud ERP is changing manufacturing and supply chain dynamics. It provides multi-site and multi-partner businesses with integrated processes that provide better insight and make the supply chain more responsive. Companies using cloud ERP outperform their competitors, provide better customer service, and lower their costs. Manufacturers and distributors need to upgrade their manufacturing and distribution software to cloud-optimized versions.