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6 Benefits of On-Premise to Cloud Based ERP Migration

January 8, 2020 No Comments

Featured article by Veronika Biliavska, Independent Technology Author

There’s a lot of buzz surrounding cloud based ERP (enterprise resource planning) solutions, and how they offer much more convenience to the enterprise company. Of course, if your company already utilizes an on-premise ERP software, what is the benefit of an on-premise cloud migration?

In this article, we’re going to look at 6 benefits of on-premise to cloud based ERP migration, to help you make a more informed decision.

Faster implementation

A cloud based ERP system can be deployed much faster than local ERP systems, as the technical environment for cloud technologies can be set up in as little as 24 hours, give or take. During this time, your organization can focus on the business side of the transformation.

Be ready to negotiate, as too many companies jump into a cloud based ERP migration without knowing the full costs. Some ERP providers may have costly fees, such as “special support fees” for ERP providers that support public clouds.

Significantly reduce operating costs

You would have difficulty running an online store without an ERP system. However, before the cloud, ERP systems represented significant investments. Until recently, the purchase of an ERP system was associated with several hidden costs. They needed system storage equipment and a dedicated technician who provided ongoing maintenance necessary to maintain its operation.

Both were at least expensive. And that doesn’t mean anything from the amount of energy required to run your own server. Thanks to cloud-based ERP solutions, everything is based on an external location, so you don’t have to invest in your own equipment. In addition, all updates and maintenance are carried out by trained specialists at no additional cost, so you don’t have to hire and train your own IT team.


The initial investment into cloud technology is considerably lower than the cost of on-premise equipment. Subscription costs will certainly add up over time, so many CFOs are more keen on reducing investment than on reducing operating costs. These CFOs can choose a cloud for many tenants to minimize long-term costs.

For smaller companies, the long-term costs of ERP in the cloud can be cheaper than for ERP on-site. Fixed infrastructure costs for ERP on-site cannot be distributed sufficiently to justify costs.

Stronger data security

To avoid security breaches, many companies use Cloud ERP because cloud service providers usually have very secure hosting environments. Some CIOs are still worried about cloud security, but they don’t know how vigilant cloud ERP providers can be secure because rates are so high.

Cloud service providers have a lot to lose – with many customers, they are popular security breaches. This may seem like a disadvantage, but in many cases it forces suppliers to develop advanced security.

Get more from day to day

You and each of your employees have instant access to everything you need for your business, on any device and from anywhere thanks to a secure Internet connection. Sales orders, inventory control, customer relationships and accounts – with the cloud-based ERP system you can access them from anywhere.

This makes it easier for you and your employees to perform their daily tasks. You can optimize the operation of your online retail store and become more productive day by day … or at least after you and your team become familiar with the new ERP. But these things are built to be user-friendly. You’ll use the system like a professional in the blink of an eye.

More efficient accounting

The bigger and more successful your online retail business becomes, the more difficult accounting becomes. However, the cloud-based ERP system ensures that your accounts are always valid and up to date. You can monitor everything in real time and process your VAT declaration in a few seconds.

You can create invoices and create as many nominal accounts as you need to best understand your company’s finances. Instead of creating an intimidating mess of files, numbers and records, your accounts are transparent and accessible no matter how big your business becomes.

About the Author

Veronika Biliavska is an independent copywriter. She is passionate about rocket science and ancient Greek literature.

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