Cloud ERP is an enterprise resource planning (ERP) system that runs on a vendor’s cloud platform as opposed to an on-premises network, allowing organizations to access over the internet. ERP software integrates and automates essential financial and operational business functions and provide a single source of data, including inventory, order and supply chain management and help with procurement, production, distribution and fulfillment.
It’s important to understand some basic concepts associated with cloud ERP as we dive deeper into the subject:
1. Deployment strategy: ERP software can be deployed on-premises/on private hosted servers or purchased in an “as a service” model. Cloud ERP functionality can usually be delivered more quickly, though in both cases, companies need to set aside time for planning, data migration, customization and configuration and staff training.
2. Cloud-based ERP: Enterprise resource planning software that’s hosted offsite, on the ERP vendor’s servers and provided as a service, accessed through a web browser.
3. On-premises ERP: Enterprise resource planning software that’s installed locally, on a company’s computers and servers and managed by internal or contracted IT staff. The software and its supporting infrastructure are managed, stored and maintained in-house. Hosted ERP: A company or a hosting provider manages the deployment of ERP software as well as associated infrastructure. Hosted deployment models are often utilized when businesses seek to outsource IT operations. While this setup provides some cloud benefits, it’s not a true “as a service” model.
4. End-to-end security: A secure and encrypted connection between a cloud-based ERP vendor and its customers. Subscription licensing: The company pays a fixed subscription fee at specific time intervals (annually or monthly) to use the software. That fee normally includes all software maintenance and upgrades and may be charged per user or per organization.
