The foremost example of integrating Cloud computing services with ERP is Cloud ERP, a type of enterprise resource planning (ERP) software that is hosted on a cloud computing platform, rather than on premises within an enterprise’s own data center.

Unlike on-premises systems, cloud ERP — which is a type of software as a service (SaaS) — increases accessibility via the internet and let users share and transfer data internally and externally, in real time. Because it is cloud-hosted, businesses are notified of any updates to the software in real time. Cloud-based ERP also comes with availability, backup and disaster recovery plans from providers to prevent interruptions to the software.

Cloud ERP provides many benefits, but it comes with its own share of management challenges. Admins lose some control when an enterprise moves off-site, as most of the responsibilities fall onto the providers. Customization abilities are far more with on-premises infrastructure. Admins have to implement new management processes for a cloud-based ERP system, which can lead to a few integration issues.

Also in the cloud, enterprises need to rely on the provider’s security, which may or may not be as secure as on-premises ERP systems. Admins must pay special attention to the data residency requirements and comply with standards and regulations, as information can reside in data centres.

Lastly, as an enterprise grows, its requirements could vary, and it may want to purchase additional modules from other vendors to fill in any gaps in cloud services. Integration complexities can occur when an enterprise uses multiple services, as some cloud applications will have to move across third-party products.

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