Exploring the Future of Cloud Computing and ERP

Companies are actively seeking solutions to enhance their agility, ensure business continuity, drive profitability, and achieve scalability as they embark on a rapidly advancing digital transformation journey. Cloud computing technologies form the foundation for every strategy aimed at attaining these objectives in the new normal. Cloud computing is revolutionizing various industries by revolutionizing how data is stored and accessed in all aspects of life.

The era of relying on multiple external hard drives to store data is long gone. Anyone can now leverage the power of cloud computing and utilize services like Apple's iCloud and Google Drive to store and access data from anywhere. Businesses no longer need to manage physical IT infrastructure for data storage; they can instead take advantage of enterprise cloud computing services such as Microsoft Azure and Amazon Web Services to handle vast amounts of data.

To put it simply, cloud computing utilizes remote data centers and servers to deliver storage and computing power on demand to individuals and businesses worldwide. This facilitates a new wave of digital transformation for businesses, enabling them to transition their operations into the digital realm without concerns about IT infrastructure.

Small and medium-sized businesses are embracing cloud ERP systems to transform their operations. Not only is this approach cost-effective, but it also offers greater flexibility through its on-demand service model. Consequently, Cloud ERP is gaining popularity, with 87% of SMBs already utilizing at least one cloud infrastructure solution.

In our blog, we will explore the future of cloud computing and other crucial aspects, primarily focusing on:

1. Cloud ERP
2. Public Cloud
3. Private Cloud
4. Benefits of Cloud-Based ERP

What is Cloud ERP?

Cloud ERP refers to an enterprise resource planning tool that operates on a vendor's cloud platform instead of a traditional on-premise setup. It comprises various interconnected technologies that utilise fast internet networks. The responsibility for security updates lies with the cloud ERP provider, and the system remains accessible online at all times. Your staff only needs to focus on logging in and utilising the ERP system to access data. This approach often results in lower ownership costs compared to conventional ERP systems hosted on company-owned servers. Cloud ERPs are typically accessible to both desktop and mobile users and offer a range of business applications to ensure smooth operations, prioritise a positive customer experience, and achieve profitable business outcomes.

One advantage of Cloud ERP systems over on-premise ERPs is the significant cost reduction since there is no need for infrastructure investment. Users can subscribe to a Cloud ERP on a monthly basis or use it on-demand without incurring substantial upfront expenses for deployment.

Cloud-based ERP solutions offer greater flexibility in terms of customisation to align with evolving business needs. As a company grows and undergoes changes, a cloud ERP can be easily tailored from the beginning or over time. In contrast, customisations to on-premise ERP software are often limited to the current version and can be challenging to reimplement with future updates, primarily if in-house connectors were utilised. This limitation sometimes leads companies to avoid updating their on-premise ERP systems, keeping them stuck with outdated hardware. In contrast, a cloud ERP system can seamlessly expand with new modules without downtime or additional hardware requirements, and it generally integrates well with other cloud-based solutions. Such agility enables proactive rather than reactive operations, enabling businesses to respond swiftly to customer trends and unforeseen circumstances.

Public Cloud

The most prevalent form of cloud computing deployment is the public cloud. In this model, your data is stored and managed on a publicly shared server, which a third party oversees. All the necessary resources, including hardware, software, and associated infrastructure, are provided by the third party.

One advantage of this deployment model is its cost-effectiveness due to resource sharing. Additionally, third-party service providers handle all maintenance tasks, and the computing resources can be easily scaled according to each business's requirements. Public cloud services like Microsoft Azure, for example, are known for their high reliability, boasting a vast network of servers to counteract any failures or downtime.

Many large companies turn to public cloud services to rapidly scale their IT resources on demand without the need to invest in expanding their physical IT infrastructure. For instance, instead of purchasing desktop workstations, a business can opt for virtual desktop licenses. These virtual desktops can be quickly deployed anywhere and activated or deactivated within minutes.

The public cloud is also a popular choice for storage needs because data stored in it is backed up and accessible from anywhere. Businesses can store infrequently accessed data in the public cloud at minimal cost, thanks to the various storage options available.

Private Cloud

As the name implies, a private cloud is a cloud computing environment where all the deployed computing resources are exclusively dedicated to a single business or organisation. These resources are deployed on a private network with limited access. Private clouds are recommended for organisations that priorities high performance, security, and privacy.

Many businesses prefer private clouds over public clouds (where computing resources are shared among multiple customers) due to their ability to meet regulatory compliance standards more easily. Others choose private clouds when their workloads involve sensitive information such as financial data, medical records, intellectual property, and personally identifiable information.

A private cloud architecture, built according to cloud-native principles, allows businesses to quickly shift workloads to the public cloud or operate in a hybrid environment when they are ready.

The primary advantages of private cloud computing deployments include complete control, a higher level of flexibility, and scalability. Private clouds are commonly used by financial institutions, government agencies, and medium to large-sized corporations.

Cloud ERPs are gaining popularity among small and medium-sized businesses. To find out why, please continue reading the rest of the article.

What are the Benefits of Cloud-Based ERP?

Small and medium-sized businesses are turning to cloud-based ERP systems to enjoy the best of both worlds: lower costs and higher benefits. They can remotely access and view critical business information while receiving 24/7 customer support from third-party vendors.

Here are some key benefits of cloud ERP:

1. Reduced Strain on IT Budget: Cloud ERP systems are budget-friendly for businesses of all sizes since they eliminate the need for upfront investments like on-site ERP systems. Cloud ERPs offer an on-demand cost structure, typically in the form of monthly payments that can be scaled up or down as needed. This flexibility is particularly advantageous for SMBs with limited IT budgets. By using cloud ERPs, businesses save on infrastructure costs and eliminate the need to hire personnel for IT resource management. Third-party vendors handle updates and maintenance and provide 24/7 support, resulting in zero IT personnel costs.
2. Remote Access: Cloud ERPs eliminate the requirement for physical presence in the office. Team members can access the cloud ERP system from anywhere using their login credentials. This is especially valuable during situations like the pandemic, where businesses have had to manage their operations remotely. Cloud ERPs enable businesses to remain fully operational without the need for anyone to be physically present in the office. Additionally, SMBs with international clients and geographically dispersed workforces can operate seamlessly, regardless of location.
3. Internal and External Security: Data security is a significant concern for businesses. Cloud ERPs allow businesses to assign different levels of access to different employees, making it difficult for unauthorised individuals to breach security. Moreover, cloud computing service providers take responsibility for complete data security, disaster recovery, and compliance. Although some business owners may have concerns about relying on third-party vendors for data security, cloud-based service providers typically have better disaster recovery and continuity plans compared to most businesses. Cloud ERP systems are safer, more secure, and more reliable than traditional ERP systems, with better data security compliance.
4. Provider Ensures Performance: Cloud-based ERP systems outperform traditional ERP systems. They provide an excellent user experience and allow businesses to customise their ERP systems as needed, which is challenging with traditional ERPs. Cloud-based ERPs seamlessly integrate with different systems, offer real-time insights, and automate processes and workflows, leading to greater operational efficiencies. Unlike traditional ERP systems, cloud-based ERPs operate smoothly without being affected by VPNs or different internet connections.
5. Expands Business Intelligence: In business, it is said that you can't grow what you can't measure. Cloud-based ERPs enable businesses to access advanced analytics and real-time insights into their operations. This allows managers and owners to track relevant metrics and adjust their strategies accordingly. Cloud ERP systems offer increased levels of tracking and real-time insights, empowering businesses to leverage the benefits of digital transformation fully. Obtaining real-time tracking and business intelligence is a complex process with traditional ERPs, while cloud ERP service providers have specialised expertise in seamlessly providing real-time analytics and insights.
   
   

Cloud-Based ERPs: Empowering Small Businesses

Cloud ERP systems offer significant value to SMBs by aligning with their cost structure while delivering numerous benefits such as real-time tracking, remote access, scalability, and security. As the speed and adoption of digital transformation continue to surge worldwide, the utilisation of cloud-based ERPs is on a steady rise.

This marks the dawn of a new era of growth for small businesses, enabling them to leverage the power of digital transformation that was once deemed expensive and exclusive. With ongoing technological advancements, cloud-based ERPs are anticipated to become even more accessible, incorporating advanced functionalities that foster more significant business expansion. The continuous developments in AI, Data Science, and Cybersecurity are expected further to enhance the value proposition of cloud-based ERPs for businesses.