What is a “True Cloud-ERP?”
Enterprise Resource Planning, or ERP, is defined by Investopedia as “a process used by companies to manage and integrate the important parts of their businesses within a single system.”
An ERP platform is the backbone that connects different departments and functions within many larger businesses and corporations, but also works incredibly well for small and mid-size organizations as well.
By most definitions, a cloud-based ERP platform starts as SaaS, or “Software as a Service”, where the application is accessible via the web.
Infoworld defines SaaS as “a software distribution model in which a service provider hosts applications for customers and makes them available to these customers via the internet.”
Cloud-ERP then takes it a step further to connect the business as a whole.
Cloud-based applications, as opposed to on-premises ones, allow for major cost savings: the customer doesn’t need to worry about leasing or purchasing and maintaining network infrastructure, servers, operating systems, storage, and much more.
The architecture may be an important indicator to tell you if the solution is truly “cloud-based”. For example, NetSuite is multi-tenant, meaning you have continuous and instantaneous access to the latest product upgrades.
According to Datamation:
“Multi-tenant architecture, commonly referred to as multitenancy, is a software architecture in which multiple single instances of software run on a single physical server. The server then serves multiple tenants.”
Twice per year, NetSuite rolls out their new Release, and customer’s accounts are automatically updated. This gives them peace of mind that they’re systems are not only secure and up-to-date, but they have access to all the newest features, improvements, and enhancements.
The overall value of a True Cloud-ERP is extraordinary:
- You have a unified platform that connects departments and results in one source of truth.
- Business processes become more streamlined and automated.
- There are fewer manual tasks and they take less time.
- Leaders see an improvement in financial visibility.
- Better data allows for better, more informed decision-making.
- Employees can focus on more meaningful priorities.
- The cost savings can also be substantial.
Here are a few statistics that may surprise you:
- The top three benefits businesses said they gained from an ERP system are reduced process time, increased collaboration and a centralized data system.
- For midsize companies—revenue under $1 billion—the cost of owning an ERP system is approximately 3-5% of annual revenue.
- Manufacturing companies are the No. 1 user of ERP software.
- In a survey of 255 companies looking to purchase ERP software, 89% identified accounting as the most critical ERP function. Other responses included inventory and distribution (67%), CRM, sales (33%) and technology (21%).
To find out all about the true value of a cloud-based ERP platform like NetSuite, download their free white paper below: