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Benefits of Moving Your ERP System To The Cloud

Year 2020
August 2020
Benefits of Moving Your ERP System To The Cloud
12 Aug 2020

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The COVID-19 pandemic has triggered the biggest ever work-from-home phenomenon, as companies are called to assess how to utilise their workers efficiently while simultaneously avoiding physical interactions. Even now in the post-Circuit-Breaker period, as the Singapore government is starting to ease lockdown restrictions, the “New Norm” of Remote Working still remains. Many of us continue to work from home and companies do not have everyone working together in their offices. Under these circumstances, most of the standard operations of businesses using traditional methods are unavailable. In this article, we will look at the Cloud Enterprise Resource Planning (Cloud ERP) solution as one of the methodologies and technical solutions to allow employees to collaborate efficiently and effectively remotely.

Problems with Traditional ERP systems

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Some companies have picked up the slack of digital transformation by taking the first step to harness On-premise 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-premise 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-premise 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-premise 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 Furthermore, when the system is out of date and problems occurred, it would cost much more to migrate.

Benefits of Moving To Cloud ERP in Covid-19


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In the context of Covid-19, Cloud ERP systems have incrementally become more favorable as its advantages are superior to On-premise 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-premise 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-premise ERP hosted in Office and Cloud ERP hosted in Data Centre Facility.

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On-Premise: 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 hour, 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
  • No 24 x 7 Physical Security
  • Additional resources and manpower for proper setup of network, security, backup, patching and server monitoring. (Most of the time SME didn’t have the resources to implement)
  • Traveling down to the office will significantly delay the time to resolve issues and increase the chance of Coronavirus infection.

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 base 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

Government Initiative for Digitalisation

The Singapore government has discerned that companies can only survive and thrive through this pandemic via digitalisation. That is the reason why they have promptly responded to the crisis by releasing various grants and bonuses as Covid-19 measures for local private businesses. Industries highly impacted by the pandemic can apply for subsidies such as Digital Resilience Bonus (DRB), Productivity Solution Grant (PSG), and so forth. The DRB was introduced in June to help Food & Retail sector that has been most affected by Covid-19. And the PSG has been increased from 70% to 80% due to the pandemic.

Thus, now is definitely the right time for SMEs to step up their business digitalisation efforts to pick up the slack. Upgrade now so that you can take advantage of the Government subsidies to let us weather through this pandemic and come out stronger than our competitors together.

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.

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