Cloud is the use of remote computing services hosted on the Internet for data storage, data processing, and running applications. Unlike On-premise solutions, where software and data are managed locally on physical servers, the Cloud enables flexible, on-demand access to IT resources via an internet connection.
On-premise vs. Cloud & SaaS, what are their differences?
While Software as a Service (SaaS) and Cloud are often portrayed as distinct concepts, they share a similar architecture. SaaS focuses on delivering software over the Internet, enabling users to access applications hosted in the Cloud rather than installing them locally. SaaS is just one aspect of what is possible in the Cloud.
Cloud computing, on the other hand, encompasses a broader range of information technology services, including data storage, computation, and the provision of computing resources on demand. Thus, while different in their application, SaaS and Cloud share a common vision centered around dematerialization and the accessibility of services via the Internet.
Before analyzing the benefits of the Cloud, let's take the time to explore the distinctions between On-premise, cloud, and SaaS ERPs in order to align ourselves with a common vision.
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Discover our guide to choose between Cloud ERP and SaaS ERP for your company
Unlock the potential of your ERP with the power of the Cloud
- Accessibility and Mobility : A cloud ERP gives you continuous access anytime, anywhere, if you have an internet connection. This accessibility makes it easier to work from home and access on the go, improving employee productivity.
- Reduced cost : Implementing an ERP Reduced cost : Implementing an ERP in the cloud tends to eliminate the significant upfront expenses associated with acquiring, installing, and maintaining hardware. Instead, costs are typically based on a monthly or annual subscription model, providing long-term economic efficiency.
- Automatic Updates : Typically, cloud ERP solution providers manage software updates and security patches, allowing organizations to stay up to date without having to undertake complex or expensive upgrades on their own.
- Scalability and flexibility : Implementing a cloud solution gives you greater flexibility to adjust IT resources based on demand. You can easily scale IT capabilities as needs change, which is especially valuable for growing businesses.
- Enhanced data security : Cloud ERP solution providers often invest heavily in data security, which ensures enhanced protection against threats such as hacks, ransomware attacks, and data breaches, compared to many on-premises installations. This protects you from the potential loss of data in the event of a fire or destruction of your systems.
- Simplified Integration : Cloud ERP systems typically offer open APIs (Application Programming Interfaces), making it easy to integrate with other software, and thus promoting easy connectivity with business applications such as CRM or supply chain management tools.
- Reduced maintenance : With a cloud-based ERP, the management of hardware and software maintenance is taken over by the cloud service provider, reducing the workload on the company's IT staff and promoting better resource allocation.
- Removal of geographical constraints : Companies that choose cloud-based ERP solutions benefit from greater agility and can scale globally faster because they are not restricted by geographical considerations such as the location of servers or On-premise IT teams.
The 10 Best ERP Plants Available in the Cloud
Here is a list of the 10 best Cloud ERPs in 2024:
- Zoho
- SAP
- Odoo
- Wise
- Cegid XRP Flex
- Microsoft Dynamics 365
- Divalto
- NetSuite
- Acumatica
- Dolibarr
Explore our selection of the top 10 ERP systems for small businesses in 2023
Conclusion on benefits of implementing an ERP system for your business
Choosing a Cloud ERP means accessing a multitude of significant benefits for companies of all sizes and in all sectors. Compared to traditional On-premise solutions, cloud ERP stands out for its cost-effectiveness, flexibility, and enhanced data security thanks to the included automatic updates.
This cloud-based accessibility enables efficient collaboration and improved productivity, enabling remote work and employee mobility. In addition, with the simplified integration of third-party systems, reduced upfront costs and maintenance, Cloud ERP is an attractive solution both technically and financially.
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