Cloud-Based ERP Secures Your Data


Companies may make use of all the advantages that ERP software has to offer online, thanks to cloud-based ERP systems. These systems are also referred to as private clouds and software as a service (SaaS). Hardware and software can be installed physically in the company's facilities when using private cloud ERP.

The system must be deployed, secured, and maintained by the IT department. Employees might be unable to access the system remotely via an application or device from a third party, and the system's initial fees can be high. Growing concern that we hear about from businesses in every industry: cybersecurity attacks. These attacks affect so many businesses that it is difficult to keep your data safe.

SaaS can be used to supply cloud ERP software. As long as they have a browser-enabled device, users can access the system anywhere they are connected to the internet. This "anytime/anywhere" access will be helpful to businesses with mobile employees, field technicians, or several sites. Cloud ERP providers also handle security updates and upgrades, freeing up customer experience to plan other growth-promoting projects.

Enterprise resource planning (ERP) software and applications that are hosted offshore and maintained by your provider are referred to as cloud-based. You can concentrate on your business rather than IT management with cloud deployment. With cloud-based SaaS systems, the vendor, not you, is in charge of monitoring and maintaining the system.

Software updates provided by cloud ERP are frictionless and available for a single, ongoing price. Cloud ERP requires little assistance from IT. As a result, your staff will be able to devote more time to strategic growth initiatives, which will raise their value to the firm.

Modernizing your ERP system is the best way to protect your data from being stolen. Forbes says that what is needed to protect against ransomware is an updated security model. This goes beyond backing up files and protecting endpoints.

You may concentrate on retail business outcomes rather than technology by using your ERP system in the cloud. You can keep up with technology advancements with automatic upgrades.

Business leaders frequently identify this capacity to stay current and stay current as one of the most pleasantly surprising advantages of switching from an on-premises ERP system to a cloud ERP system. By having access to more cutting-edge business software, you may develop a competitive advantage that changes and expands with the market.

What is Cloud ERP?

High-speed internet connections and technology are combined to create cloud ERP systems. ERP solutions in the cloud solutions are always accessible online. The ERP vendor is in charge of managing security updates. Both desktop and mobile PCs can access cloud ERPs.

These ERPs come with a wide range of business apps that can help you operate your company profitably and efficiently. Cloud-based ERPs enable almost infinite scalability and give your personnel access to all data wherever they work, whether at client sales meetings or remote job sites.

You can pick from a range of deployment models that are adapted to the requirements of your business. This might assist you in keeping your team concentrated on the appropriate measurements, procedures, and business functions.

Different Types Of Cloud-Based ERP Systems

Multi-Tenant SaaS

Typically, an ERP on the cloud is a multi-tenant service. Many businesses can utilize the same ERP version and supporting infrastructure. Data from one organization cannot be accessed by the others even though they all use the same software.

Single-Tenant SaaS

This SaaS ERP software differs from multi-tenant versions in that it can only be used by one business. This indicates that private servers running a certain software instance house the data of a company.

Public Cloud

Cloud computing services are shared by many businesses. The applications and data of each company are inaccessible to the others.

Private Cloud

Private clouds refer to a service that is not shared with another organization.

Hybrid ERP

This hybrid ERP solution offers computing, storage, services, and computing by combining on-premises software and a private or public cloud. This enables the business to employ cloud services while keeping its onsite ERP resources.

Want More Information About Our Services? Talk to Our Consultants!

Cloud ERP Concepts

As we get deeper into cloud ERP, it is important to grasp the basics of the subject.

Strategy for Deployment

ERP software can be purchased "as-a-service," on-premises, or privately hosted servers. Even while cloud ERP functionality is typically easier to acquire and deliver more quickly, businesses still need to plan and get ready for data migrations, configuration, and training.

Cloud-Based ERP

Software for enterprise resource management that is kept on the servers of the provider of the ERP. It is a service that is accessible through a web browser.

On-Premises ERP

Software for managing enterprise resources installed on a company's computers and servers and subsequently maintained by external or internal IT staff. Software and the infrastructure that supports it are internally controlled, maintained, and stored.

Hosted ERP

The installation of ERP software and related infrastructure is managed by a company or hosting provider. Businesses frequently use hosted deployment models when they want to outsource their IT operations. Although there are certain cloud-related advantages to this setup, it is not an "as-a-service" paradigm.

End-To-End Security

Between cloud-based ERP vendors and their clients, a secure and encrypted connection is established.

Subscription Licensing

A business must pay a certain subscription cost at a predetermined interval (either monthly or annually) to use the program. Software maintenance and updates are covered by this fee, which may be charged per user or business.

How Cloud-Based ERP Secures Your Data?

Protect your Business Against Fraud and Threats

By investing in attribute-based access controls, your business will maintain accountability for handling sensitive and customer data. To help prevent unauthorized access, maintain an updated accreditation log that includes authorizations and checklists for new hires, promotions, and role changes. This also entails updating workers who leave the company due to promotions or departmental changes. The most crucial data in your firm should only be accessible to employees in read-only mode.

Make sure your staff is trained to Recognize Unusual Activity and Report it

If someone doesn't follow the proper protocol, data might easily be exposed to risk. Secure logins are necessary with two-factor authentication, which also prohibits password sharing. A well-thought-out plan and guidelines can be implemented if you can't stop detecting harmful behavior.

Make sure to take time to Train, your Employees

You can fight duplicates and outdated records with the assistance of a fully qualified team. If everyone feels competent and at ease using the ERP system, employee turnover will be less of a problem. The capabilities of the ERP system can be fully leveraged to avoid having data kept in many locations, which leaves it open to fraud.

Meet all DSS and PCI requirements

If your company keeps, processes, or transmits cardholder data, be sure it complies with PCI and DSS regulations. Check your state's laws because they can differ from state to state.

Read More: Types, Features, and Functions of ERP Modules

What are the Benefits of Cloud-Based ERP?

Numerous advantages come with cloud-based ERP, including improved accessibility and mobility, decreased overhead, and streamlined operations. The server is run by the vendor. To benefit from ERP, you don't require a huge computer network. A remote cloud server powers the entire company. What advantages do cloud ERP solutions offer? The advantages of cloud ERP systems for small organizations are as follows.

Optimized ERP Performance to Match Today's Business Sector

By using cloud ERP, you may free up onsite space and resources that would otherwise be required for a substantial and expensive setup. Because the entire system is cloud-based, you can use your internal computational resources for other projects. Because they don't have to set aside money for an ERP system, it can be simpler for smaller enterprises to operate.

Lower Operating Costs

Cloud ERP has several advantages. Compared to conventional on-premise ERP systems, it costs a lot less. When you install software locally, you might only have to pay once. The construction and management of databases, initial installation, hiring of IT professionals, energy costs, security and backup, and server purchases are some additional expenses. Cloud ERP is significantly less expensive, and the vendor takes care of all upkeep and updates for you.

Traditional ERP needs ongoing hardware updates and manual maintenance. The budget of a corporation might be negatively impacted by this. However, cloud ERP is a considerably more cost-effective choice. With a relatively cheap initial cost, you can easily establish an ERP cloud system for your company.

Security Enhancements

Cloud ERP provides the highest level of security for companies of all sizes and sorts. Classified enterprise data must always be able to be safely stored and retrieved. Data breaches by outside parties are prevented via cloud ERP. The technology keeps track of every action and completely encrypts data.

Real-Time Analytics

Real-time analytics provided by cloud ERP enables businesses to view crucial data as soon as it becomes available. Since money and numbers are constantly changing, this information is always accessible. Important business decisions can be made with it. By offering real-time visibility, cloud ERP is a solution that enables businesses to optimize their processes.

Superior UAT and API Testing

Testing beta versions of application programming interfaces are made simpler by cloud platforms (API). User acceptance testing (UAT) is made simple with cloud ERP in the same way. Businesses can quickly identify potential problems when a product is evaluated in the cloud. Unlike traditional testing environments, which can only provide guesses, cloud ERP offers precise UAT and API beta testing results.

Flexibility in Access

Any connected device, whether a laptop, PC, tablet, or smartphone, can enter data. As long as they have access to the internet, coworkers can collaborate despite differences in time zones and location.

Because cloud ERP is centrally managed, all devices have consistent data interfaces. Business Intelligence Tools are made simpler to utilize by cloud ERP.

Simple Scalability at Every Stage of Growth

In a conventional, onsite workplace, scaling can be expensive and challenging. You run the risk of scaling too slowly, preventing the expansion of your company, and having a crowded infrastructure. Additionally, you can grow too quickly and spend too much money on extraneous equipment, which might result in high prices and expensive upkeep.

Because you can modify your entire infrastructure to fit each stage of your company's development, cloud ERP makes scaling simple. Smaller businesses should consider cloud ERP. It does away with the requirement to scale, which has been a challenge for many seasoned businesses.

All-Time Service Support

Cloud-based ERP services managed by vendors. Since cloud ERP services are vendor-run, support is offered around the clock for any service-related problems. However, you will need to buy an additional support package for on-premise hosting. No matter where you are, users of cloud-based ERP services have access to the support they require 24/7. Upgrades to the software are included.

What are the Disadvantages of Cloud-Based ERP?

Although there are benefits to using a cloud-based ERP system, there are also drawbacks. This might prevent industrial facilities from using the system. The following are some drawbacks of cloud-based ERP systems:


This is a serious issue that impacts both the cloud and the supply chain. Given that data is only accessible online, production facilities are concerned about data breaches. A breach in the ERP system could lead to system failure, which would cease production until a fix is found.

One significant disadvantage of cloud-based systems is that the provider can access your data. Many businesses struggle to gain access to sensitive information. Many businesses in the aerospace and defense industries opt to store their data onsite. If your data is available from everywhere, hackers could take the information from your clients.

Limitation on Customization

Systems built in the cloud can be set up to support earlier modifications. Because manufacturing customization is limited, several organizations continue to employ on-premise ERP systems best suited to their unique requirements.

Software that runs in the cloud cannot be customized. For this reason, several manufacturers continue to operate using on-premise ERP systems. By shifting your ERP system to the cloud, you will lose the ability to personalize it. The rigorous template is what makes cloud-based ERP solutions easier to adopt.

Price Comparison

An ERP system that runs in the cloud may cost more than one installed onsite. The system may cost more since it is more technologically advanced. Although the initial cost of cloud technology is lower than that of conventional on-premise technology solutions, subscription costs can quickly mount. Many business executives focus more on lowering capital expenses than cutting operating costs.

Limited Product Suites

A single product suite that addresses all user needs is rarely offered by providers. By integrating on-premises applications and cloud goods, this is accomplished. This might result in increased expenses, complex operations, and reduced functionality.

Most businesses that focus on certain applications provide this kind of ERP system. A full range of products is offered by very few providers. Costs may rise due to the need to integrate already-existing on-premises applications with cloud-based services.

Ownership is not Required

While leaving the updating to your vendor may be more effective, it may also leave you open to unsolicited upgrades. If your business isn't ready or prepared for these developments, this could be an issue. Employees may be less open to changes resulting in downtime if they are accustomed to the system they use.

Connectivity Issues

You can rely on your internet provider to be consistent because all of your data is saved in the cloud. If you are not connected, your business will not run smoothly. Serious issues might result from this.

 Get a Free Estimation or Talk to Our Business Manager!


For expanding firms, cloud ERP software offers many advantages. To scale your organization and improve effectiveness, accessibility, cost savings, and business growth, you will need trustworthy and cutting-edge solutions.

For expanding firms, cloud ERP software offers several advantages. To scale your organization and improve effectiveness, accessibility, cost savings, and business growth, you will need trustworthy and cutting-edge solutions.

Although cloud software is growing in popularity, not everyone should use it. Making this choice when selecting an ERP system for your business is crucial. It would help if you weighed each pro and con before choosing a course of action. We advise you to choose an ERP system that best suits your needs and organization.

However, cloud ERP systems have many benefits. Contrary to popular assumption, ERP systems that are hosted in the cloud are safer than those that are installed onsite. As more sensitive data is at risk, ransomware infections and other cyber-attacks are growing.