Why Does Cloud-Based ERP Make Sense For Small Businesses?

Enterprise resource planning (ERP) software suites are ubiquitous within the business world. While this technology was once primarily the purview of large and mid-size companies, small business owners increasingly recognize its value and importance. However, the challenges faced by small businesses are much different from those of larger companies.

These larger organizations often need to make one significant decision when implementing a new ERP solution: on-premise or cloud-based? Although small businesses technically have the same choice, there are reasons why cloud-based solutions often work better for these smaller organizations. Keep reading for three reasons why cloud-based EPR is typically the go-to for small business owners.

1. Reduced On-Site Hardware Requirements

If you don't run a company operating in the technology space, it's unlikely that you have a significant number of on-site hardware resources. ERP suites can be complex and often require substantial power on the back end. At a minimum, many on-premise ERP solutions will require one or more dedicated servers at your business.

These requirements can be challenging to meet if you don't already have a technical staff and the appropriate equipment. On the other hand, cloud-based solutions remove the need for expensive on-site hardware. Instead, you can use your office computers to interact with an ERP suite running on dedicated, high-end hardware in a professionally-managed data center.

2. Fewer Technical Hurdles

ERP suites can drastically streamline and improve business operations, but initial implementation can be a substantial technical hurdle. Many businesses work with ERP consultants to set up their initial implementation. Still, this process can be time-consuming even when you don't need to deal with the technical details of installing the actual software.

A cloud-based solution removes the need to spin up the backbone of your ERP software, allowing you to focus instead on the implementation of the business side. As a result, you'll be able to get your system up and running more quickly, putting it to use for your business instead of dealing with frustrating technical hurdles.

3. Quicker Support

Anyone who's worked much with complex software knows that the technical hurdles don't end with implementation and setup. Once you've implemented your ERP system and integrated it with your business operations, you may still have questions or face future technical issues. An on-premise installation puts much of the burden for these problems on your internal IT staff.

While this extra workload may be acceptable for large businesses with many IT personnel, it can often be difficult for smaller organizations. Working with a cloud-based ERP solution allows your employees to quickly get the support they need without adding extra work for your IT staff.

For more information on ERP software, contact a professional near you.

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