Reasons Why Your Business Should Switch to a Cloud-Based ERP System.

Reasons Why Your Business Should Switch to a Cloud-Based ERP System.

1. Cloud systems usually require less initial capital.

On-premises ERP systems have a reputation for cost overruns and difficult implementations, a large number of projects have resulted to failure. However, businesses and ERP vendors learned from these missteps, and the new generation of cloud-based ERP systems such as SmartERP use the SaaS model to provide software that sidesteps many common financial pitfalls.

This approach has numerous financial advantages because it turns ERP systems from a capital cost into an ongoing operating cost, thus preventing the need for large-scale capital upfront. This type of approach can be a lifesaver for small businesses that need to scale quickly but don’t yet have the capital to invest in their own server rooms and hardware infrastructure.


2. A cloud ERP system is a safer and more secure place for corporate data.

Security is a top concern with cloud-based applications, and it’s one of the biggest reasons that some businesses are still using on-premises ERP systems. This is caused by a widespread perception that the cloud can’t provide the stability or security of an on-premises ERP system.

For those organizations who still employ on-premises ERP systems, these systems in the near future will become increasingly obsolete. it is vital to note that cloud systems put more security responsibility on the shoulders of employees especially managers. Since a cloud-based system gives many employees access to ERP data anytime and anywhere, the responsibility falls upon these employees to avoid potential security risks such as exposing data on unsecured public Wi-Fi networks. These dangers can, of course, be mitigated with proper training, but businesses should be aware of them when transitioning to cloud-based ERP.

For businesses that want an extra layer of assurance, employing a third-party security consultant to evaluate a cloud provider’s security measures can be a good investment. Security consulting can also give businesses insight about how to implement best practices for data protection in their training procedures.


3. Updates are a considerably faster and easier process in cloud-based software.

The update process is another area where cloud ERP systems offer major improvements over on-premises ERP. All ERP software requires periodic updates to fix security vulnerabilities, improve performance and more. In on-premises ERP systems, this can be a long process that consumes significant IT labor resources and can involve production interruptions. Most problematic of all can be incompletely-applied updates, in which various users and departments end up with different versions of the software after an update. In a SaaS ERP system, software updates are deployed from the manufacturer or vendor’s cloud servers, removing the burden of constantly updating the system from overworked IT departments. Security patches, software updates, new modules and more are largely installed automatically — usually in the background, this process allows employees using the system experience minimal disruption. Version inconsistencies are both much less frequent and easier to address, as the service provider’s team usually has the ability to access and update any user’s account remotely.


4. Cloud ERP systems help unlock the power of mobile devices.

The mobile device has long been an essential business tool, but cloud-based ERP supercharges their power and allows sophisticated access and control through ERP-enabled mobile devices. One feature of cloud ERP that makes it perfect for mobile systems is its ability to offer centralized access to data from across an organization, but in a decentralized manner that removes traditional barriers to efficiency.

Organization decision makers now have the power to instruct and make vital decision concerning day to day operations any where at any time.


Connect with our SmartERP Platform team to learn how our ERP software can help your business grow.

Feel free to visit our website at To book a live free demo, reach out to us on or call us at +255 719 060 679.