In the fast-changing world of business technology, companies are gravitating towards Cloud Enterprise Resource Planning (ERP) systems to boost efficiency and maintain a competitive edge. Unlike their traditional counterparts dependent on on-premises infrastructure, Cloud ERP brings a host of benefits, reshaping the way business functions. Let’s explore the advantages that come with transitioning to a Cloud ERP system.
Understanding the difference
What is Cloud ERP System?
Cloud ERP system, is the same as transitioning from a traditional bricks-and-mortar store to an online marketplace. Imagine your data and processes hovering in a secure digital atmosphere, accessible from anywhere. It’s like upgrading from a fixed, upfront payment model to a flexible pay-as-you-go system, much like streaming services where you pay for what you use. The robust security measures act as a digital fortress, safeguarding your valuable business information like a high-tech vault. In essence, cloud ERP system is the futuristic control center for your business, orchestrating operations with the agility and efficiency of a well-conducted digital symphony.
How is traditional ERP different from cloud ERP System?
Traditional ERP, reminiscent of a massive in-house library, is like managing your business data with a dedicated on-premises librarian. Your different business functions, resembling various sections in the library, are centralised for easy reference. It’s comparable to buying and maintaining an extensive book collection, requiring a significant upfront investment and ongoing maintenance efforts. Imagine the library as your business headquarters, where all transactions and information are physically stored and managed.
This model contrasts with the cloud-based approach, acting more like owning a personal digital tablet with instant access to information from anywhere. The traditional ERP library, though foundational, may feel a bit like managing a vast physical archive in a digital age.
Problems with Traditional ERP systems
Some companies have picked up the slack of digital transformation by taking the first step to harness on-premises ERP system years ago, which is good. However, in the context of working from home, there are many problems with implementing business operations using the traditional method. The most obvious disadvantage of using an on-premises ERP solution amid the Covid-19 outbreak is that users would still need to initially access VPN to the company network before connecting to the ERP system. The procedure is normally slow and inefficient. Secondly, enterprises using on-premises ERP systems need to hire professional IT manpower to maintain, update, backup, and secure the system. It would take a longer time to implement and when problems occur, the employees would still have to travel down to check and support. Other than that, the traditional on-premises system lifespan is only 5 years for the hardware. Companies have to refresh the hardware and perform system migration every 5 years to ensure its stability and reliability. Furthermore, when the system is out of date and problems occur, it would cost much more to migrate.
Benefits of Moving To Cloud ERP
In the time when remote working has become the norm, Cloud ERP systems have incrementally become more favorable as its advantages are superior to on-premises ERP. Firstly, cloud-based ERP systems are able to be accessed via the user browser over the internet without installing or configuring the system at the users’ side. Therefore, cloud ERP users can access the system anywhere and anytime without interruptions. Secondly, the systems are centrally managed by IT professionals in Data Centre facilities, which allows for a shorter time of implementation and faster response time. Thirdly, with cloud ERP systems, enterprises no longer need to purchase new hardware and migrate every 5 years. Finally, by subscribing to a cloud ERP system instead of an on-premises ERP system, your company can avoid one-time high hardware costs which give better cash flow and low upgrade cost.
Here are more specific details listed below, comparing on-premises ERP hosted in office and cloud ERP hosted in data centre facility.
On-Premises: Hosted in office
- Need to purchase UPS for surge protection and power disruption, which only last about 30 minutes
- Most likely the server only runs in air conditioner environment during office hours, the heat will shorten the lifespan of the equipment
- In the event ceiling sprinkle is triggered, the server will be short-circuited and most likely the backup will also be destroyed
- Additional resources and manpower for proper setup of network, security, backup, patching, and server monitoring. (Most of the time SMEs didn’t have the resources to implement)
- Traveling down to the office will significantly delay the time to resolve issues
Cloud: Hosted in data centre facility
- Uninterrupted Power Supply (UPS) & diesel generator that can run for days without SP power
- 24 hours precision cooling system – ensure the server is running in a cool place for better reliability and stability
- FM 200 – Gas based fire suppression system (no water)
- 24 x 7 physical security, biometric door access, and passcode
- Professionally implementation and management of network, security, patching, backup, and server monitoring
- Faster response time when issues occurred
Synergix Cloud ERP Software
Synergix ERP software is cloud-ready, fully web-based, and mobile-friendly. Users do not need VPN to have access to the system. Furthermore, Synergix ERP solution is also fully managed so that businesses need not worry about hardware spoilage, power trips or the accidental breaking of the equipment and data security. Hosted in a state-of-the-art Data Centre Facility, which is ISO certified, Synergix ERP Cloud is well protected. Intrusion Detection Prevention, Firewall, Anti-virus and Backup are put in place so that companies do not need to spend additional resources to take care of the system. Contact us now for shifting to Cloud ERP Solutions to allow your business to thrive in these unprecedented times.