Cloud-based computing services have become ubiquitous in the business IT environment. From critical infrastructure and communication platforms to collaboration applications, cloud solutions are quickly overtaking traditional on-premise solutions. Despite the increased acceptance of cloud services, ERP is making the shift at a slower rate, despite sharing a number of similarities with the cloud computing philosophy.

Research and advisory firm IDC estimates that 70% of companies’ core applications currently run on-premises or in co-location facilities. But Statista forecasts the cloud ERP market at $28.8 billion by 2022, with just 8% compound annual growth since 2016. In fact, surveys from other research firms indicate a majority of corporate teams expect a focus on off-premise cloud technology in 2020.

An ERP system is designed to manage and automate core operational activity on a single integrated software platform, from product planning and development to sales and marketing. Businesses benefit greatly when they have central access to shared data with a single application and user interface. Cloud-based ERP solutions extend these benefits into new territory with hybrid environments and dedicated cloud-based models.

Let’s look at five things you should know about cloud-based ERP so your business can take advantage of the best in modern enterprise technology.

1. Cloud-based ERP software is accessible and affordable

While ERP has long been associated with enterprise organizations and even specific industries, the cost benefits and operational advantages of integrated software now more widely available because of the cloud computing model. From health care and hospitality through to transportation and financial services, businesses of all sizes can benefit from cloud-based ERP solutions.

The ability to share operational resources offers increased cost advantages to anyone who relies on integration of multiple databases and software applications.

2. Cloud-based ERP increases flexibility

Despite the benefits of an integrated approach, on-site ERP solutions can create problems when business needs, processes or demands change. Instead of getting tied down by complex, expensive hardware and software, more businesses are migrating to a cloud setup.

Cloud-based ERP solutions are capable of enabling much greater organizational flexibility to adopt, adapt, and maintain key services quickly and efficiently.

3. Cloud-based ERP improves scalability

Cloud-based ERP solutions are much more scalable than comparable onsite solutions. Along with avoiding many of the upfront costs associated with computing infrastructure, cloud services allow you to update your commitments and scope as you grow and evolve. This is a particular advantage to small and medium businesses who don’t have access to unlimited capital.

By avoiding expensive hardware costs and restrictive software licenses, you can budget more effectively and focus your efforts on running your business. Having the ability to scale resources up or down according to seasonal, operational and market demand is a major advantage to any business.

4. Cloud-based ERP enhances agility

Agility, or the ability to operate and adapt quickly, is a crucial aspect of cloud computing. Rather than relying on slow infrastructure and outdated technology, cloud-based ERP gives you the speed and power of a much larger organization. The opportunity to adopt software as a service (SaaS), platform as a service (PaaS), or infrastructure as a service (IaaS) solutions with the latest technology advances increases agility across industry sectors.

If you need to expand your capabilities, the added capability to develop, test, and launch software applications quickly is integral to business growth.

5. Cloud-based ERP ensures security

Cloud-based ERP ensures privacy, data security, and compliance in the case of data or network disruption. Whether it’s a cyberattack, a natural disaster, or human error, cloud-based ERP ensures the safety of your data at all times. According to a study by TechnoUSA, 94 percent of all businesses think their security is improved due to cloud services.

Regular backup services are integrated into ERP solutions, along with other important security features like multi-factor authentication, multiple data centers, geographically decentralized infrastructure, regular hardware maintenance, and a comprehensive disaster recovery plan.

Working with an IT partner like AppSolute that experienced in ERP is the best way to ensure the successful implementation, customization, and maintenance of a cloud-based ERP system.