HOW DOES CLOUD ERP WORK?
Cloud ERP systems work with a combination of technologies connected by high-speed internet networks. The cloud ERP is always online and security updates are handled by the ERP provider.
Hypernix is one of the best cloud ERP software company in Malaysia With over 10 years of experience in the industry. Our Software has a proven track record of helping small businesses streamline their operations and achieve greater efficiency.
All your team has to worry about is logging in and using the ERP and its underlying data. This may lead to a lower cost of ownership than older ERP systems hosted on company-owned servers.
In many cases, cloud ERPs are accessible to users on mobile devices or desktop computers. They include a wide range of business applications to keep your business running efficiently with a focus on a positive customer experience and profitable business outcomes.
Cloud-based ERPs offer near infinite ability to scale and empower your team to access any information they need wherever their work takes them, from customer sales meetings to remote worksites to your home office.
The ability to securely login from anywhere can’t be understated in the post-COVID business environment, where more workers than ever are working from home and other remote locations. Key features include the ability to access customer information, sales histories, financial data, human resources management tools, live operating metrics, supply chain status, and more. A cloud ERP can tie together virtually any computer system your company requires.
COMPONENTS OF CLOUD ERP SOFTWARE
An ERP (Enterprise Resource Planning) system is a software solution that helps businesses manage and integrate their core processes, such as accounting, procurement, project management, and supply chain management.
In the manufacturing industry, ERP systems can be particularly useful for streamlining operations and improving efficiency.
When it comes to choosing an ERP system, it’s important to find one that meets the specific needs of your manufacturing business. Here are some key features to look for:
Human capital management (HCM) and/or Human resource management software (HRMS)
Customer relationship management (CRM)
Supply chain management
Project management (CRM)
Material requirements planning (MRP)
Cloud ERP vs. On - Premises ERP
The above breakdown likely begs the question: If cloud-based ERP and on-premises ERP systems provide similar functionality, why choose the cloud?
Is hosted and managed by the vendor, which provides the software in an “as a service” model through the cloud. The vendor is responsible for the application, data storage, the underlying operating system, servers, the physical data center infrastructure and installing security updates and feature upgrades.
On - premises ERP
Is software is installed and managed by a company’s IT staff or a managed service provider. The business licenses the core software platform upfront and then buys or leases enterprise-grade servers, networking and storage to physically run and house the software and associated data. Businesses using on-premises ERP incur additional costs for maintenance, troubleshooting, supplementary software, updates and customizations. Antivirus and security software as well as storage and server backup systems are also necessary additional costs.
Benefits of Cloud ERP Software
A cloud-based ERP solution can be a valuable asset for small businesses looking to streamline their operations, reduce costs, and improve efficiency. Hypernix cloud-based ERP solution is a top choice for small businesses in Malaysia, offering a range of features and benefits that can help businesses achieve their goals. Our cloud-based ERP solution is tailored specifically for small businesses, offering a range of features and benefits including:
- Upfront infrastructure and reduced IT cost
- Implementation speed
- Customizations and agility
- Security, compliance and disaster recovery
- Storage resilience and access
- Real-time visibility into business operations
By using a cloud-based ERP system, small businesses can significantly reduce their IT costs. There is no need to invest in expensive hardware or pay for ongoing maintenance, as the system is managed by the software provider.
Companies with an on-premises ERP system will encounter additional costs for maintenance, specialized in-house or on-call resources, upgrades and updates, as well as additional servers as the company grows. Cloud ERP generally costs about 30% less than on-premises ERP.
Since the cloud ERP vendor hosts and manages the software on its own servers, businesses avoid upfront infrastructure costs as well as additional costs for IT staff, maintenance, security and updates. The vendor provides ongoing IT support.
One of the biggest hurdles of any new ERP solution is the implementation time, which can directly affect business downtime and time to value—in one study, about half of businesses said their implementations finished in the projected time. A business can normally get up and running more quickly on a cloud-based ERP system than on-premises as it does not require selecting and setting up hardware or hiring and training IT staff.
Cloud-based ERP 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.
As small businesses grow and change, their needs will evolve. A cloud-based ERP system allows businesses to easily scale up or down as their needs change, without the need for expensive hardware or infrastructure.
Without the challenges of adding more servers for more users, locations or subsidiaries, cloud-based ERP solutions make scaling a business easier.
As a business grows, the cloud ERP grows. An organization can start with the basic, core functionality and add more as needed—without adding more hardware. Not to mention, a cloud ERP solution allows users across the globe to access business information by simply connecting to the internet. No local servers are necessary, so as a company grows by merger or acquisition, new units can be brought online quickly.
Cloud vendors typically own data centers around the world and will keep each customer’s data in multiple locations, providing better and more reliable service than most businesses could manage themselves. Cloud software vendors typically strive for 99.999% availability—which translates into customers seeing less than eight minutes of unplanned downtime each year.
Just as cloud-based ERP can scale with an organization, it can also be more easily customized to fit business needs—from the start or over time, as a business grows and evolves.
While on-premises ERP software can be customized, those customizations are tied to the current software and maybe difficult to reimplement with future versions, particularly if integrations were developed in-house. This is one of the main reasons some businesses avoid upgrading their on-premises ERP systems and continue running out-of-date technology.
Furthermore, cloud ERP systems tend to integrate well with other cloud-based products, and new modules can be added to a cloud ERP system without downtime or additional hardware. This kind of agility enables a business to remain proactive instead of reactive, adjusting more quickly to industry changes, consumer trends, unforeseen circumstances and more.
Cloud ERP vendors typically manage all system upgrades and updates on an ongoing basis, keeping up with evolving business needs and ensuring customers are using the most up-to-date technology. Updating or upgrading on-premises ERP software requires more time and may even involve hiring contractors to manage the process. With cloud ERP, updates can take as little as 30 minutes and usually occur during off hours to prevent business disruptions.
A cloud-based ERP system is typically more secure than an on-premises system, as the software provider is responsible for maintaining the security of the system. This means small businesses can have peace of mind knowing their sensitive data is safe and secure.
Furthermore, a business can remain confident that its data is always backed up, and the vendor is armed with planned and practiced disaster recovery procedures.
Unless organizations have a disaster recovery and business continuity plan, on-premises ERP solutions come with the risk of catastrophic data loss in the case of hardware or software failure or a natural disaster, fire or break-in.
Cloud providers typically offer enterprise-grade security and end-to-end encryption of data between the vendor and the organization. Note that companies are responsible for identity and access management of cloud ERP users and securing devices, like PCs or smartphones.
If on-premises hardware fails, a company could spend a considerable amount of time and money transferring data to a new storage system. With cloud-based ERP, data is housed in the provider’s data centers, usually redundantly and geographically dispersed. This is also beneficial in terms of providing access to business information and data over the internet, an important consideration as more jobs and operations move online and companies seek to automate and streamline business processes.
With a cloud-based ERP system, small businesses can access up-to-date information on their operations from anywhere, at any time.
This allows them to make informed decisions and respond quickly to changes in the market.
Cloud ERP Challenges
While the trend is clearly toward more use of cloud, there are potential challenges organizations may face: