What Is Cloud ERP Software and Is It Right for You?


What is cloud ERP software? Cloud ERP software is a type of ERP that, rather than being stored on-site at your company, is stored on a seller’s digital cloud platform.


There are many digital tools that marketers can take advantage of, and one of those tools is an enterprise resource platform (ERP). ERPs help you manage your various business data and processes, from your finances to your human resources.

Of course, there are many different ERP options out there, including different kinds of ERPs. For example, there are many on-premises ERP systems, but there are also cloud ERPs. 

What is cloud ERP software, though, and why might you want it?

Keep reading for an overview of cloud ERP software. We’ll cover:

  • What is cloud ERP software?
  • 4 benefits of using a cloud ERP system
  • Should you use a cloud ERP or an on-premises ERP?

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What is cloud ERP software?

Cloud ERP software is a type of ERP that the vendor stores in the digital cloud. That’s in contrast to on-premises ERPs, which are stored on the servers at your company’s physical location. Basically, it’s kind of like storing a file in Google Drive instead of on your desktop, except it’s for a whole ERP system instead of one file.

Some key cloud ERP features include:

  • Order management
  • Inventory management
  • Business analytics
  • And more!

4 benefits of using a cloud ERP system

There are several reasons you might want to use a cloud ERP system for your company. Here are four of the biggest benefits of cloud ERPs.

1. High customizability and scalability

The first advantage of a cloud ERP is that it usually comes with more customization options than other ERPs. 

It’s harder to customize on-premises ERPs because you’re limited by the version of the software you have installed. But cloud ERPs typically start with a base version, and then let you add on different modules for customization.

The same goes for scalability. For example, say you expanded your company and want to grow your ERP to reflect that. Or, maybe you set up a new business location, and you want that location to have access to the ERP as well. Instead of setting up additional servers, you can just upgrade to a different cloud ERP plan.

2. Easier upgrades

Another benefit of cloud ERPs is that they’re much easier to upgrade. When you get an on-premises ERP, that’s it. You have the software you have. But with a cloud ERP, the platform is still stored on the vendor’s servers, so they can continuously push through updates that fix bugs and keep the ERP up to date.

Furthermore, tying back in with the first benefit on this list, there may be situations where you want to upgrade to a different plan. If you have an on-premises ERP, you now have to install a whole new software to get the upgraded version of the ERP. But with a cloud ERP, you can easily make the upgrade without having to reinstall anything.

3. Accessibility from anywhere

One of the best things about a cloud ERP system is that you don’t have to be in your office to access it. On-premises ERPs are stored on your company’s servers, so you have to be at your company’s physical location to use it. But cloud ERPs are stored online, so you can access them from a variety of devices at a variety of locations.

That’s incredibly convenient if your business requires you to do a lot of field work. Instead of having to jot down data and then enter it into your ERP once you’re back at the office, you can input that data into your ERP while you’re out in the field.

Also, if you set up new locations for your business after you get your ERP, you don’t have to go through the hassle of newly installing the ERP at the new location. You can simply go into the cloud and access it there, the same way you do at your original location.

4. Stronger backups and security

Finally, cloud ERPs are perfect for ensuring a smooth data backup process. A company’s worst nightmare is for some disaster to destroy their servers, erasing their ERP and everything in it. Thankfully, you can avoid that nightmare by using a cloud ERP.

With a cloud ERP, your data will be safe if your servers become corrupted or destroyed. Not only will the ERP vendor’s servers have far better anti-hacker security than your company’s, but they’ll also be safe from, say, an electrical storm that fries the servers at your business location. Should something like that happen, all your ERP data will still be safe and sound in the cloud.

Should you use a cloud ERP or an on-premises ERP?

Now that we’ve gone over the benefits of using a cloud ERP for your company, let’s consider whether it’s the right choice for you. Should you go with a cloud ERP or an on-premises one?

This page has focused on cloud ERPs, but there are advantages to an on-premises ERP, too. For one, cloud ERPs require a subscription, whereas many on-premises ERPs require one payment up front and that’s it. Also, you have more direct control over an on-premises ERP rather than relying on the vendor for as many services.

For that reason, if you’re wondering which type of ERP to get, it comes down to your priorities. If your biggest priority is security, a cloud ERP is probably the way to go. On the other hand, if you loathe the idea of having to make continuous subscription payments, consider going with an on-premise option.

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WebFX can help you harness your ERP for digital marketing

ERPs can help you manage a wide variety of data and processes, including your marketing campaigns. But while they can help with your marketing, they can’t run your campaigns for you. If you want help optimizing your marketing, you’ll need to turn to an experienced digital agency like WebFX.

When you partner with WebFX for our digital marketing services, you can get help with everything from your paid ads to your web design. We’ll harness the different areas of your marketing to drive up your sales and generate more revenue.

Interested in partnering with WebFX? Just give us a call at 888-601-5359 or contact us online today!

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