Cloud-based ERP systems offer a variety of advantages over traditional on-premise solutions. One of the most notable benefits is ease of implementation.

Advantages of Cloud-based ERP

Greater support

Choosing the right ERP solution for your business is essential to ensure that you have the best tools and resources available to manage your operations. When selecting an ERP solution, it is important to consider the level of support offered by the vendor.

The vendors who keep ownership of their hardware and software can often offer your business with 24/7 support.

This includes technical assistance, troubleshooting, and system updates as needed.

If you were to choose to implement an on-premise ERP solution, you would need to purchase support packages as and when they are released continually. On the other hand, cloud-based systems usually offer support as part of their overall package. This means that any issues or questions can be addressed quickly without having to purchase additional packages or services. Additionally, cloud-based solutions often come with built-in scalability options so that businesses can easily increase their usage if needed without having to invest in additional hardware or software.

Enhanced security

Enhanced security is one of the major benefits of cloud-based ERP systems. In the past, many businesses were hesitant to store their sensitive data in the cloud due to security concerns. However, with advancements in technology and a host of ERP cloud vendors offering secure environments, this is no longer an issue. BAASS Business Solutions Ltd’s General Manager, Wendy Gorrie, believes that data stored remotely on servers is much safer than if it was stored locally on devices. This means that if a device is lost or stolen, the data will remain safe as it never leaves the server.

Although cloud-based ERP vendors are responsible for providing a secure environment for your data, it is still important for businesses to take steps to ensure their own security measures are up-to-date and effective. This includes implementing strong passwords and two-factor authentication as well as regularly monitoring user activity and access rights. By taking these precautions, businesses can be sure that their sensitive information remains safe and secure in the cloud.


When it comes to choosing an ERP system, scalability is a key factor. Businesses often find themselves needing to upgrade their current system as they grow and expand. Cloud-based ERP systems offer the perfect solution for this, as they can quickly scale up or down depending on the company’s needs. This makes them very attractive to businesses looking for a flexible and cost-effective solution.

In comparison, an on-premise ERP system requires more time and labor to make changes and updates. It also requires additional hardware and software investments which can be costly in the long run. With cloud-based solutions, however, companies can make immediate changes without having to invest in additional infrastructure or personnel. This makes it much easier for businesses to keep up with their changing needs without breaking the bank.

Real-Time Analytics

Real-time analytics is an invaluable tool for businesses of all sizes. Cloud ERP provides companies with the ability to access vital information as it becomes available, allowing them to make informed decisions quickly and efficiently. This data can be used to track sales figures, customer trends, inventory levels, and more. It also allows companies to identify areas of improvement in their processes and operations.

For manufacturing companies, real-time analytics can be especially beneficial. By having access to up-to-date information on production output and other metrics, they can optimize their processes and ensure that they are running as efficiently as possible. With cloud ERP, this data is readily available so that decisions can be made quickly and accurately without having to wait for reports or manually enter data into a system. This helps manufacturers stay ahead of the competition by being able to react quickly to changes in the market or customer demand.

Superior UAT and API Testing

Beta-testing application programming interfaces (API) and performing user acceptance testing (UAT) are both essential steps in the software development process. Cloud ERP makes it easier to do both of these tasks, as it allows companies to test their products within a working environment. This type of testing yields more accurate results than traditional methods, which only provide speculative conclusions.

Cloud ERP also offers the advantage of allowing team members to collaborate from any connectible device, regardless of their location or time zone. This means that everyone can input data in real time from anywhere with an Internet or Wi-Fi connection. This makes it much easier for teams to work together on UAT and API beta tests, even if they are spread across the country. By using cloud ERP for superior UAT and API testing, companies can ensure that their products are ready for launch without having to worry about potential issues arising later on.

Fewer Technical Requirements

Cloud ERP is a great option for businesses looking to save money on their IT budget. By using cloud-based services, companies can avoid the need to purchase additional hardware and software for their network. This eliminates the need for costly repairs and upgrades, which can be a major expense for any business. Additionally, cloud ERP services are typically offered on a subscription basis, meaning that businesses only pay for what they use. This makes it easier to manage costs and ensure that the company is getting the most out of its investment in technology.

Disadvantages of Cloud-based ERP

Cloud-based ERP systems have become increasingly popular in recent years, but they come with a few potential drawbacks.

May cost more in the long-term

When considering a cloud-based ERP system, it is important to consider the long-term cost. Although this type of system offers transparency and convenience, periodic payments could make it more expensive over time. It is essential to look at where you expect your business to be in 10 years before making a decision. If you anticipate rapid growth or expansion, then the cost of the cloud-based system may be worth it in the long run.

On the other hand, if you are expecting your business to remain relatively stable over time, then a traditional ERP system could be more cost effective in the long term. This type of system requires an upfront investment but does not require ongoing payments for maintenance and upgrades. Additionally, with a traditional ERP system, you have complete control over customization and implementation. Ultimately, when deciding between a cloud-based or traditional ERP system, it is important to weigh both short-term and long-term costs before making a decision.

Lack of customization

The lack of customization in some cloud-based ERP systems can be a major drawback for businesses that require a more tailored approach. While the cloud-based system is often faster to implement, some work with templates that may not meet the exact specifications of the business. This can be especially problematic for larger firms that want total control over their productivity applications. Third-party applications may only allow for interface customizations, which may not be enough to meet the needs of certain businesses.

For smaller businesses, a lack of customization may not be an issue as they are likely to benefit from the speed and convenience of a cloud-based ERP system. However, for larger firms that need more control over their applications, this could be a major problem. It is important to consider all aspects before deciding on an ERP system and make sure it meets all your requirements before committing to it. With careful consideration and research, you can find an ERP system that works best for your business and its specific needs.

Limited product suites

When it comes to enterprise resource planning (ERP) solutions, some companies offer limited product suites. This means that they focus on particular applications and do not provide a single suite of products. Some vendors, like Certinia ERP, offer a complete suite from accounting to SCM to revenue management, and procurement, all integrated on the Salesforce platform, but many don’t offer a whole ERP package.

For businesses, this can be tricky because they might need to link their on-premise applications to cloud products, which will result in additional expenses.

Additionally, businesses that involve complicated operations may not find cloud-based ERP suitable since it may require a high degree of customization.

Lack of ownership

When it comes to software and technology, having ownership over the updates is essential. Without taking ownership of the updates, companies are leaving themselves vulnerable to changes that they may not be ready for or even want. This can lead to a lack of productivity as colleagues become accustomed to a particular system and are reluctant to accept any changes. Furthermore, if the vendor is in charge of the updates, then there is no guarantee that the company will be able to keep up with the latest trends and technologies.

Having ownership over software and technology updates also allows companies to have more control over their own systems. Companies can decide when they want to upgrade their systems and what features they would like included in those upgrades. This gives them more freedom when it comes to making decisions about their own technology needs and allows them to stay ahead of the competition by being able to implement new features quickly and efficiently. Additionally, having control over their own system ensures that any downtime due to upgrades is minimized as colleagues are already familiar with how things work.

Connectivity issues

When all your data is stored in the cloud, you need to be confident that your internet provider will deliver reliable service.

Without a reliable connection, you can’t access your data or use any of the services that rely on it. This can cause major issues for businesses, as they need to be able to access their data and services at all times. If there are connectivity issues, it could lead to lost time and money as employees are unable to work efficiently.

Connectivity issues can also affect customer service. If customers cannot access the website or contact customer service representatives due to poor internet connections, they may become frustrated and take their business elsewhere. Additionally, if a company is unable to provide timely updates or respond quickly to customer inquiries due to connectivity problems, it could damage its reputation and lead to a loss of customers. Connectivity issues can have serious consequences for businesses, so it is important that companies invest in reliable internet providers and ensure that their systems are up-to-date with the latest security measures.