We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    Flat editorial illustration: The article connects AI and marketing analytics with managerial judgment grounded in consumer behavi
    How an Online MBA in Marketing Connects AI and Data Analytics
    11 Min Read
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: When Does Cloud ERP Start Saving Money?
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > When Does Cloud ERP Start Saving Money?
Uncategorized

When Does Cloud ERP Start Saving Money?

EphraimCohen
EphraimCohen
6 Min Read
When Does Cloud ERP Start Saving Money?
Illustration generated with Qwen Image.
SHARE

Companies that implement a cloud ERP solution are yielding significant and tangible cost reductions in both IT staff and hardware infrastructure, in addition to the intangible benefits of cloud solutions, such as access any time from anywhere from virtually any device. Because of such impressive benefits, the interest in cloud ERP is growing and installations are multiplying. However, to imply that organizations will find implementations to be a joyous and happy time, simply because of “the cloud,” is to set expectations that are nearly impossible to meet.

That’s because a major component of an implementation that does not change is the ability of a company to absorb and learn new ERP software. Even cloud ERP requires dedicated time and documentation, sometimes an instructor, to train employees on the use of the new ERP software. Although some cloud ERP software vendors would like you to believe otherwise, just because it is in the cloud, doesn’t necessarily mean it is significantly easier to implement than On-Premise software.

After all, the various aspects of implementing a cloud ERP solution versus an On-Premise system remain the same. There is the Analysis of the Business Requirements; and, sometimes, even more Business Process Re-Engineering. Users must be trained. The implementation encompasses the pilot of key functions, the conversion of data from the prior system (or Excel spreadsheets), and the various aspects of “customer go live on the ERP.”

Nonetheless, with a cloud ERP implementation, a company does eliminate many of the hidden costs of implementing an On-Premise solution including the acquisition of hardware, operating system software, database management software and other infrastructure products. Not only do these items carry significant costs but come with built-in delays affecting the project. And, when all is said and done, the largest cost savings may be the ability to start and complete the entire implementation project without having to make that large up-front investment in perpetual license and maintenance fees that are characteristic of On-Premise solutions. With this said, though, there is still a learning curve, albeit one that most companies are prepared to handle.

More Read

How the History of Data Gathering Lead to the Age of Big Data
How the History of Data Gathering Lead to the Age of Big Data
From Sensors to Big Data: Chicago Is Becoming a Smart City [VIDEO]
Big Data, ESP and Transubstantiation
Resource Mistakes, Part III: Silencing Dissent
Data Analytics Will Help Marketers Rebrand Themselves

“Been there, done that!”
For the most part, newer ERP software is easier to use – once you know how to use it! That’s the promise of each new addition of Windows too – but is this a reality? Yes, it is – once you know how to use it! However, no matter how it is sliced and diced, no matter how good a software system is documented, full-featured ERP software, Cloud or On-Premise, have complexities and nuances that take some time to understand and absorb.

Bottom line – implementation efficiency is not gained because of “the cloud” or that the new software is promoted as “next generation.” Efficiency is gained because ERP is not a new concept and most companies have formerly undertaken ERP implementations. Their management and employees know the problems that occur during implementation and are now prepared to respond more quickly. They can compare and contrast what they are doing now versus what they did in the past. Today, they appreciate what is needed to implement an ERP:

  • Commitment: The customer’s executives and management are committed to the implementation of the new software.
  • Resources: Management allocates the proper amount of resources to assure success.
  • Experience: The experience of the assigned implementation team can bring efficiencies and lessons learned from previous ERP implantation to the project.
  • Right Partner: The company hires a software vendor that not only has truly figured out how to have all the functionality needed in the software but has actually made that software less complex and easier to turn on.

Once their software is up, running and fully implemented, companies can even more appreciate the benefits of cloud ERP. Although they have cut infrastructure expenses from the very beginning, it’s at this point they really begin to appreciate the cost reductions in both IT staff and hardware infrastructure that only cloud ERP can provide, not to mention the intangibles that typically exceed expectations.

Author Bio
Pat Garrehy is the Founder, President, and CEO for Rootstock Software® and has an extensive background as a software architect and engineer. As a University of California at Berkeley graduate, he holds a BS degree in business and mathematics as well as a MBA in finance from the University of Southern California.

TAGGED:big databusiness intelligencecloudcloud erpdata in the clouditsoftware
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article connects AI and marketing analytics with managerial judgment grounded in consumer behavi
How an Online MBA in Marketing Connects AI and Data Analytics
Analytics Artificial Intelligence Big Data Exclusive
Flat editorial illustration: The article connects commercial drone capture with integrated software workflows that organize and r
Drone Technology as a Business Investment: Calculating ROI, Costs, and Long-Term Value
Business Intelligence Marketing Software
Flat editorial illustration: The article connects weekly technician productivity and related shop metrics to timely scheduling an
Workforce Analytics for Auto Repair Shops: Reading Technician Productivity Weekly
Business Intelligence Exclusive
Flat editorial illustration: A business-editorial depiction of two account-growth routes: data-guided targeted advertising and cr
Targeted Ads and Cross-Promotion: Using Audience Segments and Platform Statistics to Grow
Exclusive Social Data

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

Negotiation Rules
AnalyticsBig Data

Big Data and Pricing Analytics Are Rewriting the Negotiation Rules

5 Min Read
5 Industries That Are Impacted By Data Collection In A Major Way
Big DataData CollectionExclusive

5 Industries That Are Impacted By Data Collection In A Major Way

6 Min Read
Here's How Big Data Is Transforming Online Gaming
Big DataExclusive

Here’s How Big Data Is Transforming Online Gaming

5 Min Read
Consumerization of IT, Well...
Culture/LeadershipNew Products

Consumerization of IT, Well…

11 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai chatbot
How AI Website Chatbots Improve Customer Support and Lead Generation
Chatbots Exclusive
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?