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Comparing cloud ERP to on-premise

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Effective enterprise resource planning (ERP) is key to maintaining a successful business, with the advantages outweighing the costs when companies choose cloud computing over IT on premise.

By 2021, 28 percent of all IT spending will be used to support cloud-based infrastructure, middleware, application and business process services, according to Gartner. Confidence is growing among enterprises that Platform-as-a-Service (PaaS), along with Software-as-a-Service (SaaS), will be able to offer a secure and scalable platform for application development in the future.

Evaluating ERP needs

According to IDC, more than 85 percent of enterprises will soon tap into multi-cloud architectures using a mix of public cloud services, community clouds, private clouds, and hosted clouds. The time is ripe to migrate to this technology. There have been significant advancements in cloud ERP, and the versatility of the technology still enables companies to save money if they plan well for their migration to the cloud.

Taking this into consideration, there are still many factors companies should consider when choosing between cloud ERP and the standard on-premise infrastructure. In addition to the financial and labor costs of migrating to the cloud, the most effective solution depends upon business needs.

Consider your organization’s size and scope, the expectations of your customers, the regulatory environment, the demand of workloads on cloud migration, and how your IT team defines the cloud. To manage cloud infrastructure efficiently, you’ll need to have the correct people and tools in place.

Advantages of cloud infrastructure

The cloud offers companies more agility, giving CIOs the flexibility to form cloud-based solutions that are catered to their company. Cloud ERP provides many benefits to companies who are willing to put in the time and resources to make the switch. It can be especially beneficial to startup companies, small companies or even mid-sized companies, by stimulating business growth while limiting operational expenses.

As the technology matures, companies can offer advanced data security and cybersecurity, while also helping your team save time, reduce risk and work smarter. With access to IT devices and programs that are usually reserved for larger corporations, you can also become more competitive in the marketplace.

With cloud ERP, companies can also enjoy a wide variety of options for IT solutions, choose solutions that scale well and have their choice of service providers. The management provided by an off-site team lends an added level of confidence to IT infrastructure. As an added benefit, companies often experience fewer downtimes.

Reasons to maintain on-premise technology

As you consider whether to migrate to cloud ERP solutions, it may be advantageous to perform risk analysis on behalf of your company. Take into account the collaboration needs of your firm, as well as financial operations, training operations and auditing.

Companies in heavily regulated industries may find that it’s not beneficial to migrate all operations to the cloud. The risks also increase for companies that employ more than 500 workers, as the size and scope of the migration will be more complex.

The cost of the switch varies greatly depending on the nature of a company, what infrastructure is needed, and whether the company moves fully to the cloud or opts for a hybrid option. Choosing a firm that will lead you through the process, and offer a cost-efficient solution is essential. This should consist of meeting and planning stages, steps to architect and design solutions that fit into the master plan, and a smooth plan for management of your IT solutions.

Depending on the timing of a migration, you may decide that it’s best for your company to maintain on-premise solutions. This can also be advantageous if your team is not fully prepared such a migration because of its size and scope.

Common Technology Problems Solved By an MSP

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In today’s digital world, technology plays a big part in driving business growth. However, many companies are facing technology challenges that they aren’t always prepared to address on their own. That’s where a Managed Services Provider (MSP) can be a gateway to increased growth, revenue, and profitability.

What is a managed services provider?

A managed services provider remotely manages your IT and end-user systems. It is a term that encompasses many IT services that focus on providing the best IT support possible. At the same time, working with an MSP can solve many of the common technology problems facing businesses today.

Security lock

The Problem: A need for improved security

Cybersecurity is a high-priority issue for every company today due to the increase in the number and severity of recent cyberattacks. No company is exempt – and the impact can be devastating. In 2017, cyberattacks cost SMBs an average of $2,235,000.

Company leaders are looking for cost effective ways to protect themselves to increase their peace of mind, avoid downtime, and to comply with regulatory requirements.

Working with an MSP gives you:

  • Access to more sophisticated cloud security systems
  • Access to highly-trained security specialists
  • Complete cloud backup services
  • Proactive services designed to protect you from cyberthreats

Server

The Problem: Backup and disaster recovery

As companies depend more on technology to complete normal business processes, the thought of extended downtime or losing all of your data is frightening. Therefore, developing an effective disaster recovery plan is a high priority for many companies.

Your data is arguably your most critical asset. The results of losing access to that data can be devastating. According to the experts, approximately 25% of businesses won’t reopen after a significant disaster. The statistics get worse for companies that experience a disaster, but don’t have a recovery plan. Forty-three percent of those businesses won’t survive.

Working with an MSP, you’ll tap the expertise you need to:

  • Identify all the possible threats you face
  • Identify an emergency communication plan and a recovery team
  • Develop an evacuation strategy
  • Develop a business continuity plan

Once your disaster recovery plan is in place, an MSP can provide the capacity for backing up your data, the resources to implement your recovery plan, and help you stay in business if a disaster does strike.

Stopwatch

The Problem: Avoiding downtime

Downtime is always a threat. The result may be the postponement of an important client presentation, or a delay in filling orders.

Equipment failures happen to everyone. Networks go down, and a hard drive crashes every 15 seconds. Besides that, almost 40% of SMBs don’t back up their data. There is no option for switching over to a redundant system, and many SMBs don’t have the budget to put a redundant system in place to begin with.

Working with an MSP, you’ll have highly-trained technicians who make sure your systems are operating at peak efficiency. An MSP can offer the type of redundancy that will keep you working even if technical failures occur.

MSPs will also quote guaranteed uptimes. With the resources at their disposal, they have the horsepower they need to meet those guarantees.

Code programming network

The Problem: Need to get better at identifying root causes

It’s not always possible for SMBs to develop an IT department with the resources to take care of regular maintenance, support users, and spend the time to analyze a system problem and identify the root cause.

The result is that the unsolved root cause continues to cause problems repeatedly. Users get frustrated and the IT staff waste time correcting symptoms of the same problem.

An MSP has the resources and knowledge required to take the time to drill down into a symptom to find the root cause and fix it.

Team work

The Problem: IT staff doesn’t have time for strategic work

Since technology is so integral to a company’s growth, it’s critical that the IT staff focuses on driving innovation. Unfortunately, for many SMBs, that’s nothing more than a pipe dream. The day-to-day requirements that keep your systems running and your users happy don’t allow the staff to spend a great deal of time on value-added projects.

MSPs offer an easy way to resolve that problem. With an MSP managing your systems, your staff will have the time they need to continue innovating. In fact, industry experts have found that of those businesses that work with an MSP, only six percent eliminated its IT staff. Fifty-three percent of those businesses kept its IT department as it was originally.

Cost savings

The Problem: Finding ways to reduce IT costs

Every business wants to reduce costs, but it’s often more important for SMBs. A lean SMB doesn’t have many places where cost cutting is reasonable.

Working with an MSP is one way to reduce costs without reducing the benefits the business gets from using technology. An MSP can achieve economies of scale in terms of acquiring software, hardware, and experienced IT staffers.

The fees paid to an MSP are typically fixed, which provides you with predictable monthly costs. And, those fees are typically accounted for as operating expenses vs. capital expenditures.

In the end …

These are just some of the problems an MSP can solve for you. In the process, you’ll be able to redirect internal resources to continue the growth and profitability of your business.

If you would like to explore the specifics of how an MSP could contribute to the long-term health of your business, contact us today for more information.

Welcome to the AppSolute Blog

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Greetings and welcome to AppSolute Consulting Group, LLC and our new blog.  AppSolute is a New York based firm that provides business management software and complementary technology solutions to small and medium-sized businesses in the tri-state area as well as around the world.  This blog site will provide valuable insights, tips and tricks, and additional guidance for companies interested in upgrading business systems or getting the most out of today’s business solutions.

AppSolute is a full-service provider of technology-based software for companies that are interested in improving productivity and profitability by replacing outdated software with modern business solutions.  We are a certified Microsoft, Sage and Acumatica partner, each of which offer powerful enterprise resource planning (ERP) and customer relationship management (CRM) solutions.

Our team of experts include project managers, programmers, system analysts, network engineers, and certified public accountants.  With a depth of knowledge in both business technology and the unique pain points experienced in many industries, our team can deliver knowledgeable, relevant support when providing a needs analysis, implementation planning, custom programming, help desk support, and other IT services.

Our goal is to provide businesses with the technology that they need to be successful and the support services that keeps these solutions running at peak capacity.  To support these services, we have added a blog page to our website.  Our blog posts will include helpful information about Microsoft, Acumatica, and Sage business solutions, relevant industry insights, and other IT information that you can use to strengthen your company and business processes.

Modern business technology has come a long way in recent years.  Today’s ERP and CRM solutions are no longer out of reach for the small and mid-sized businesses that compete with larger corporations.  Microsoft, Acumatica, and Sage solutions are affordable, intuitive, and can provide the control and insight you need to grow your business.   Contact the experts at AppSolute for additional information about the business solutions that can support your corporate goals and drive growth.

By AppSolute Consulting Group, LLC, Microsoft, Acumatica, and Sage Partner out of New York