The Pros and Cons of Cloud Based ERP Implementations

ERP, or Enterprise Resource Planning, has revolutionised the way in which we communicate, delegate, and facilitate the everyday facets of business. Thanks to highly advanced software and networking systems, we have spent the last 20 years moving towards a business schematic that is based on everyone staying informed, and bolstering communication amongst all departments and individuals. ERP has even given business owners the ability to communicate selected information with external stakeholders. It sounds like the complete business solution, doesn’t it?

However, having an ERP system, regardless of how effective it is, is not the key to success in the competitive world of business. This article will investigate both sides of the ERP coin, so that you are fully aware of what is happening before you place all of your trust in a flawed system.

Let’s take a look at the positives of cloud based ERP, before digging deeper to find out about the flaws thereof.

The pros of cloud-based ERP implementations

The internet is many things, but one of the clearest and most essential business applications of the web is for communication. In the past, Ethernet and other networking solutions allowed intra-departmental communication, but these systems seemed to be full of gremlins, and a communication breakdown on this level could be catastrophic. Of course, this all changed with the advent of cloud-based ERP implementation.

Due to the fact that communication of ideas was now based on a cloud, distance, position, and clearance were a thing of the past. Every level of a business could be informed of a change by the click of a button, and thanks to mobile connectivity, they would never really have the excuse of the system being down. Or would they?

Cloud-based ERP is fantastic for doing business on the go, does not suffer from traditional flaws, and has the potential to change your business. But it is most definitely flawed.

The cons of cloud-based ERP implementations

Despite our faith in the internet, the fact of the matter is that it is not found in every corner of the globe, and if you work in a business that takes you to far flung places, without any kind of connectivity, then you are still left completely out of the loop. While this may be a rare scenario in the Western world, many developing markets are plagued by a lack of access, and you could become one of a number of business people seduced by the omnipotence of ERP. Even on a cloud, it has its limits, you must always remember this.

A second problem is security. While the technician running your ERP installation, be it traditional or cloud-based, will tell you that the various firewalls and security measures in place are sure to protect you and your information, the fact is that placing data of this importance online is incredibly risky, and with technology and industrial sabotage being what they are today, you should maybe think twice.

Author Bio: Victoria Heckstall is a freelance writer who writes on a variety of topics, such as Cloud Integration System

Image credit: FutUndBeidls

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1 Response to "The Pros and Cons of Cloud Based ERP Implementations "

  • Brett Beaubouef 04:23 PM 30/10/2012

    Very nice article Victoria. I recently attended Oracle’s OpenWorld Conference in San Francisco this October. There was a huge volume of information on the Cloud. As I walked through the Exhibitor’s halls at the Moscone Center, I observed that every SI partner had ERP in the Cloud or could get customers to the Cloud seamlessly. What I did not see is any offering or advisory service to guide ERP customers through the storm clouds to find the right provider. In the next sections we will discuss the key competencies to consider as part of making an ERP Cloud provider selection.

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