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Top 10 Reasons to Migrate to Cloud-Based ERP from On-Premise Solutions
Top 10 Reasons to Migrate to Cloud-Based ERP from On-Premise Solutions

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 Intriguingly, businesses depend on enterprise resource planning (ERP) software to automate virtually every facet of their operations. It encompasses supply chain activities, procurement, risk management, and financial processes.

Yet, achieving such a high degree of automation has incurred a substantial expense. According to a recent study, companies faced significant costs in establishing their on-premises ERP Solutions.

Therefore, it is a great idea to shift to a cost-effective alternative to store and safeguard your data. Let's dive into the details of the need to migrate from the on-premises to the Cloud ERP.

What Are the Major Reasons To Migrate to Cloud from On-premise ERP?

Numerous Small & Medium Size Businesses find value in SAP ERP solutions to decrease ownership costs, eliminate obstacles to enhanced functionality, and foster corporate agility. It enhances data security and diminishes reliance on IT.

In contrast, an on-premise ERP involves maintaining the ERP infrastructure within the company's premises or at a company-owned data center. If there's a need for additional computing power or bandwidth, one can procure mainframe computers and seamlessly integrate them into the existing infrastructure.

Thus, ERP Solutions become a viable option for companies rather than on-premises systems. Here, in this blog, we will discuss all the possible reasons to migrate data from the existing on-premise ERP to the cloud.

1. Reevaluate IT Expenditure

Many companies turn to the cloud as a means of trimming IT costs. Rather than predicting capacity needs in advance, businesses can adapt on the fly, eliminate outdated assets, and easily adjust the size of cloud-based resources based on specific requirements.

Additionally, the implementation costs of cloud-based ERP systems are typically lower than on-premise counterparts, making it a viable option for smaller organizations.

2. Enhance Business Flexibility

Business agility is paramount in today's global economy. Organizations need flexible, on-demand IT resources to navigate the ever-changing industry landscape and maintain their competitive edge. The SAP Business One Implementation comes to the rescue by offering over 99 percent of these resources.

It streamlines businesses to seamlessly utilize them directly from cloud providers, drastically reducing time-to-market.

3. Elevate Security Measures

A recent study highlighted that cybercrime and cybersecurity collectively incurred a $1 trillion cost to the global economy in 2020. The escalating frequency and impact of cyber attacks emphasize the crucial role of cybersecurity.

Cloud-based ERP systems, such as those offered by SAP, incorporate built-in security measures to safeguard data. Contrary to the misconception that on-premise ERP systems avoid cloud-related security risks, migrating to the cloud enhances IT infrastructure and shields programs from hacking attempts.

4. Eliminate End-of-Life Concerns

Optimizing on-premise ERP infrastructure necessitates long-term planning, with end-of-life deadlines for essential components influencing decisions.

Cloud-based ERP offers a pay-as-you-go model, allowing organizations to pay for key capabilities as needed. It benefits from upgrades without being constrained by long-term contracts or application life cycles.

5. Enhance Operational Efficiency

Shifting to a cloud ERP eliminates the need for businesses to maintain on-premise data centers. This transition significantly impacts the IT department by freeing up time for strategic IT infrastructure development.

Cloud ERP systems are generally easy to maintain as software vendors assume more technical responsibilities. It reduces day-to-day maintenance tasks for internal IT personnel.

6. Streamline Maintenance Hassles

ERP software upgrades and maintenance become worry-free as vendors host and maintain the system infrastructure. The users can now manage the database server, infrastructure maintenance, distribution updates, and bug fixes.

This subscription-based service often includes 24/7 support, ensuring secure and compliant software.

7. Embrace New Technological Frontiers

Cloud migration opens avenues for leveraging new cloud-native technologies. Integrating AI, machine learning, advanced analytics, and business intelligence capabilities offers companies a cost-effective way to leverage these technologies.

SAP Business One enables them to make accurate projections, uncover valuable insights, enhance operational efficiency, and introduce innovative services.

8. Swift Deployment

Cloud deployments typically outpace their on-premise counterparts. For instance, a SaaS application of similar complexity and breadth might take two weeks, compared to a three-month timeline for on-premise implementation.

It minimizes downtime during the transition, enabling businesses to respond promptly to market changes or increasing demand.

9. Simplify Customization Processes

Configuring an on-premise system to align with unique business objectives is often more expensive and time-consuming, requiring significant resources.

Cloud ERP solutions offer a simpler and more cost-effective customization process, as the vendor handles customizations without additional hardware or software costs, making it easier for businesses to develop solutions tailored to their specific needs.

10. Facilitate Seamless Collaboration

Cloud collaboration stands out as a primary advantage of cloud adoption, enabling simultaneous collaboration among employees across different locations. Version control features allow users to work on the same document simultaneously, automatically saving and documenting changes.

It minimizes the need for separate copies and provides an easily accessible virtual trail at all times.

Get SAP ERP Implementation For Smooth Workflow

The accumulation of these modules empowers companies to generate better value with minimal resources. Yet, the most seamless journey to the cloud is to customize your company's unique needs, objectives, and technological roadmap.

You have the autonomy to set the pace and determine the priority areas within your company. It's crucial to opt for a certified implementation partner for adeptly SAP B1 Implementation for Manufacturing across diverse industries and geographies.

SAP ERP is the leading solution that manages all facets of business operations. 

 


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