Previously we wrote about the benefits of cloud ERP software, and it appears that the trend towards the cloud is continuing, perhaps as a result of its many benefits.
Here’s a brief recap of the benefits of cloud ERP software:
- Reduced up-front investment in software licenses
- Eliminate hardware expenditure & maintenance
- Reduce/eliminate IT staff and IT management
- Increased data security via a secure data centre
- Predictable IT expenditure and cash flow
With these benefits and more, it’s no surprise that cloud ERP software continues to rise in popularity. According to a Gartner forecast, cloud-based enterprise applications will amount to 16% of all enterprise application expenditure by 2015, up from 11% in 2010. The numbers in favour of the cloud may be even higher in certain situations, with some vendors reporting as much as a 50/50 split between on-premises and cloud-based software implementations.
One of the main drivers of increased cloud interest and market growth is education. Just a couple of years ago, many business owners would not have been aware of cloud software or its benefits, but many have now researched the alternatives and have gone out specifically in search of a cloud solution. Cloud software still has a long way to go for true market dominance, but has already proven itself as a viable and popular alternative to on-premises solutions – particularly amongst smaller businesses.
Another driver of cloud ERP software popularity is the simplicity it offers for small and medium businesses. While large corporations may have access to significant IT resources, small and medium businesses can enjoy professional hardware and software management without having to employ IT professionals.
All things considered, a cloud solution is not necessarily always the right fit for everyone. It’s common for a vendor to offer one deployment method or the other, but if you can find vendors who offer both on-premises and cloud software, they can help you work through the advantages and disadvantages of each to make an informed decision.