Searching for the Best Cloud ERP Software: The 7 Essential Criteria

Overview

Businesses beware! Some vendors have retrofitted their ERP software to run on the internet from their own internet-connected data centers, giving the clients an illusion of cloud ERP. These systems don’t offer the full functionality of a cloud-based ERP and therefore, you can miss out on some major benefits like scalability options or APIs. These systems also require significant downtime for patch upgrades. Therefore, decision-makers should conduct thorough research before selecting the right fit.

If you are looking to implement a cloud ERP system in your organization, then keep reading!

Computer-based ERP systems have been around for more than 30 years. These systems have gone through some trailblazing innovations and the introduction of cloud ERP in the early 2000s proved to be radical. Cloud ERPs are ERP systems that can be accessed over the internet and users don’t need anything more than an internet-enabled device (mobile, laptop, computer, etc.) and an internet connection to operate them.?These systems were instrumental in bringing the benefits of ERP to startups and small to medium-sized businesses, along with big enterprises.

Understanding Cloud ERP

Enterprise resource planning is a business management software that integrates and automates essential business functions and creates a single source of reliable data. ERP has independent modules for production planning, procurement, inventory, manufacturing, compliance, finance, sales & marketing, etc. that work together to streamline processes and optimize workflows. Cloud ERP can make all these modules accessible through the internet, simply on a web browser.

The complete suite of ERP functionality is available in cloud ERP, along with the convenience of logging in over the internet from any device, from anywhere, at any time. The required infrastructure for cloud ERP is owned by the vendor, as opposed to on-premises ERP, where the client has to invest in developing and maintaining servers, hardware, systems, etc. Thus, the choice of cloud ERP can save a considerable amount of money for the client, freeing up funds to be invested in other business activities.

An organization owns a specific instance of the cloud ERP software by paying a periodic (monthly, quarterly, annual, etc.) subscription fee to the vendor. The client can access a full host of ERP features through a secure URL and store their data on a secure cloud. Moreover, cloud ERP takes advantage of cloud computing to access and analyse massive amounts of data in near-real time. Keeping these factors in mind, implementing cloud ERP might be a wise decision!

Cloud ERP Deployment Methods

Before speaking about the essential criteria for selecting the best cloud ERP system, let us first discuss the deployment options available to the clients:

Multi-tenant SaaS – The same version of the ERP software and its connected infrastructure is used by multiple organizations. Although, one company’s data remains inaccessible to the other companies.

Single-tenant SaaS – A single version of the cloud ERP solution is dedicated to a single client. No other company can use the same instance. The cost of Single-tenant SaaS is higher than multi-tenant.

Public Cloud – Multiple organizations use the same cloud computing services over a public cloud. The data remains quite secure. Examples of public cloud include Amazon Web Services and Google Cloud.

Private Cloud – A private cloud setup is created by purchasing a dedicated server space at a data centre. The services of a private cloud are not shared with any other organization.

Hybrid ERP –?A combination of on-premises ERP software with a private or public cloud for computing, storage and services.

The constraints of investment, security, and flexibility play an important role in the selection of one of these options.

7 Essential Selection Criteria for the Best Cloud ERP Software

Before deciding to implement a cloud ERP solution, read the list of essential criteria for the best cloud-based ERP software:

• Mobility:?This is one of the primary reasons for companies to choose cloud ERP over traditional ERP systems. Cloud ERP has the ability to move with you, wherever you go, from customer sales meetings to remote worksites to your home office. Fake cloud ERPs can only be accessed via a client-side remote terminal application, which can only run-on systems connected through a VPN. A true-blue cloud ERP gives you access to your data from any browser and any computer, but only with valid login credentials.

• ?Security: Some clients might have their reservations about storing their data on a cloud. However, Cloud ERP systems come with security tools that actively use the HTTPS protocol to deal with web traffic and highly secure SDKs to implement encryption for apps and default encryption for data in-store. A business can remain confident that its data is always backed up, and the vendor is armed with planned and practiced disaster recovery procedures. Further, security updates are made available by the vendor as per the latest technological trends to keep your data safe.

• ?Accessibility: The client can simply ask the vendor to create User IDs and passwords on the basis of the subscription they choose, and user access can be enabled in a matter of a few minutes or hours. After setting up their user IDs and passwords, users can access business information in real time, from anywhere and on any device. This ensures employees across the organization are working with the same data, no matter the business unit or location, and can make decisions faster and more confidently.

• ?Scalability: If you are stuck with a fake cloud ERP, you will need to overbuy the subscription to handle peak loads. Whereas, a real cloud ERP can add/remove users quickly and easily. As your organization grows in size, new users can be added according to your subscription. There is no need to add more servers for more users, locations or subsidiaries, which makes the scaling up of the business much easier. The ability to manage multiple business units from a single ERP solution irrespective of their location, gives the business a standardized culture of operation.

• ?Flexibility: The elements of external business environment are changing every moment and your business needs to keep up with it. Also, every organization has their unique workflows and processes, therefore, cloud ERP software should have the flexibility to allow for custom adaptations to be made by the client. A cloud-based, flexible ERP allows a company to easily change and extend business process across the enterprise. A flexible ERP also significantly reduces and eliminates the need for manual processes and workarounds to meet business change.

• ?Stability:?As the entire system is seeded onto a cloud, stability is one of the major concerns for cloud ERP implementation. The software solution should be stable while performing the most complex tasks and deliver results in near-real time. Bug fixes for the cloud ERP system should be provided proactively by the vendor and the system operations shouldn’t behave erratically at the time of updates. Even if the cloud ERP is open at different locations, it should deliver peak performance without any lags or discrepancies.?

• Longevity:?A cloud ERP software should be future-ready. The vendor shoulders the responsibility of providing software updates and technological upgrades to their clients. This ensures that the client is operating on the most up-to-date version of the ERP software without incurring any extra cost. Business practices are prone to change, and vendors generally promise to stay ahead of these changes with their incremental updates. Cloud ERP has the ability to leverage a single platform for all newly developed applications, thus reducing operational costs and complexity.

Cloud ERP is a technology of the future, which is why, every organization is making an investment towards shifting their legacy systems to the cloud. If you are also looking for a mobile, secure, accessible, scalable, flexible, stable and future-ready cloud ERP solution, then you should definitely check out BatchMaster Cloud ERP. If you need a demo of the features and capabilities of this next-gen ERP software, click here.