Cloud ERP is Software as a Service (SaaS) that allows users to access Enterprise Resource Planning (ERP) software, other applications, infrastructure and data storage, over the Internet. Cloud ERP generally has much lower upfront costs because computing resources are leased by the month rather than purchased outright and maintained on premises. Cloud ERP also gives companies access to their business-critical applications at any time from any location.
Pros
Lower ownership costs
Lower upfront costs, less hardware and physical servers, less IT infrastructure and maintenance, less future investments.
Faster deployment
Faster setup, can turn on in days.
Improved system performance and uptime
System is always up-and-running with better, faster performance.
Better security
Cloud providers are typically better at securing your data than companies can locally.
Centralized data
Multiple branch / project data stored in one place, available anywhere.
Anytime, anywhere access
Access to real-time data anywhere at any time on any device via the internet.
Continuous and painless system upgrades
Always up to date with the latest version to ensure your system is future-proofed.
Data recovery
Automatic data backup on the cloud system. On-premise hard disk crash or natural disaster can be catastrophic for a business.
Cons
Fewer customizations
Cloud applications support customizations, but generally less than on-premise can support.
Required internet connectivity
Requires internet connection and may not be suitable for places where internet connectivity is unreliable.
Heavy regulatory needs
May not meet the full regulatory compliance data storage needs of certain industries.
Vendor lock-in
If needed, companies may find it difficult to migrate their services from one provider to another.
