Cookies help us display personalized product recommendations and ensure you have great shopping experience.

By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    data analytics and truck accident claims
    How Data Analytics Reduces Truck Accidents and Speeds Up Claims
    7 Min Read
    predictive analytics for interior designers
    Interior Designers Boost Profits with Predictive Analytics
    8 Min Read
    image fx (67)
    Improving LinkedIn Ad Strategies with Data Analytics
    9 Min Read
    big data and remote work
    Data Helps Speech-Language Pathologists Deliver Better Results
    6 Min Read
    data driven insights
    How Data-Driven Insights Are Addressing Gaps in Patient Communication and Equity
    8 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
cloud ERP implementation
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.

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.

cloud ERP implementation

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.

More Read

3 Ways to Get Your Data Into Shape [INFOGRAPHIC]
Eight ways to get developers on board with SOA governance
Business Rules Forum 2009 – Day 2 #brf
Beyond Campaigns
A beehive is a very interesting biosensor: bees disperse from…

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.

“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

data analytics and truck accident claims
How Data Analytics Reduces Truck Accidents and Speeds Up Claims
Analytics Big Data Exclusive
predictive analytics for interior designers
Interior Designers Boost Profits with Predictive Analytics
Analytics Exclusive Predictive Analytics
big data and cybercrime
Stopping Lateral Movement in a Data-Heavy, Edge-First World
Big Data Exclusive
AI and data mining
What the Rise of AI Web Scrapers Means for Data Teams
Artificial Intelligence Big Data Exclusive

Stay Connected

1.2kFollowersLike
33.7kFollowersFollow
222FollowersPin

You Might also Like

business intelligence
AnalyticsBig DataBusiness IntelligenceExclusive

Businesses Use Inbound Comms to Generate Market Data

8 Min Read
Image
AnalyticsBusiness IntelligenceData VisualizationOpen SourceRisk Management

The Diary of a Construction Manager in Love with His Business Intelligence Solution

5 Min Read

Why IT Doesn’t “Get” Analytics (and Why the Time is Right for Change)

8 Min Read
big data improves
Big DataJobsKnowledge ManagementUncategorized

3 Ways Big Data Improves Leadership Within Companies

6 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 in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
ai is improving the safety of cars
From Bolts to Bots: How AI Is Fortifying the Automotive Industry
Artificial Intelligence

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-25 SmartData Collective. All Rights Reserved.
Go to mobile version
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?