Is Cloud Based ERP Software Right for Your Business?

Danielle Lobo

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. 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.

A driver of cloud ERP software popularity is the simplicity it offers for small and medium businesses. While large corporations may need their own software systems to satisfy their business structured, they also have access to significant IT resources, small and medium businesses can enjoy professional hardware and software management without having to employ IT professionals.

Key Moments to Transition to Cloud Wholesale ERP

Transitioning to a cloud-based ERP system can significantly benefit wholesale companies at various stages of their business lifecycle. Often, specific challenges prompt companies to seek new software solutions and explore cloud-based implementations. Here are the ideal times to evaluate and transition to cloud wholesale ERP:

  • Expansion and Team Growth
  • Hardware Replacement Cycle
  • Technological Advancements
  • Aging IT infrastructure
  • Increasing Operational Complexity

Expansion and Team Growth

When expanding your offices or growing your team, it's crucial to consider switching to a cloud-based ERP solution. This transition is particularly beneficial when:

Adding Multiple Locations: As you open new warehouse or office locations, a cloud ERP system allows seamless remote access to the software from anywhere in the world. This eliminates the need for purchasing additional servers, making the expansion process more cost-effective.

Enabling Remote Work: Cloud ERP provides flexibility for employees to work from home or remotely. Salespeople can connect while working with customers or at trade shows, and management can access the system while traveling. This flexibility leads to faster decision-making and better real-time data insights for your sales team.

Hardware Replacement Cycle

When your existing on-premises hardware is due for replacement, it's an excellent opportunity to switch to a cloud ERP solution. Consider the following points:

Cost of Maintenance: Servers and hardware for on-premises systems require regular maintenance and replacement every few years. Outdated equipment can cause system crashes, slow performance, and data loss.

Total Cost of Ownership: Managing infrastructure costs is a significant consideration. Transitioning to a cloud ERP system transfers the responsibility of infrastructure management to the vendor, ensuring your software runs on the most efficient and up-to-date equipment.

Technological Advancements

As technology evolves, new features and functionalities become available, making it an ideal time to adopt a cloud ERP system. Key benefits include:

Regular Upgrades: Cloud ERP vendors consistently develop their solutions, providing regular software upgrades that take advantage of the latest technological advancements.

Enhanced Features: New features such as mobile functionality, eCommerce integration, and wireless barcode scanning become accessible. This ensures your company always has access to the latest and greatest functionalities.

Aging IT Infrastructure

Maintaining and upgrading on-premises IT infrastructure can be costly and time-consuming. Transitioning to a cloud ERP system can relieve these burdens:

Hardware Upgrades: When your existing hardware is nearing the end of its lifecycle, it's an ideal time to switch to the cloud. This move eliminates the need for significant capital investment in new hardware.

Maintenance Costs: Regular maintenance and troubleshooting of on-premises servers can strain resources. Cloud ERP systems shift the responsibility of infrastructure management to the vendor, reducing IT salary costs.

Increasing Operational Complexity

As your business operations become more complex, manual processes and disconnected systems can hinder efficiency. A cloud ERP system can integrate and streamline operations:

Unified System: Cloud ERP consolidates various business functions into a single system, improving data accuracy and reducing duplication of efforts.

Process Automation: Automating routine tasks and offering real-time information frees up your team to focus on strategic activities, enhancing overall productivity.

Customer Support: Cloud-based ERP software systems often provide round-the-clock support, with some offering personalized assistance tailored to your specific business needs during designated support hours. Additionally, many service providers have dedicated help desk sites that address commonly asked questions enabling users to practice on-going education.

Recognizing these key moments in your business lifecycle can help you determine when it's time to transition to a cloud ERP system. Whether you're expanding, facing IT infrastructure challenges, needing to leverage new technology, dealing with increasing operational complexity, managing costs, or prioritizing data security, a cloud ERP solution can provide the flexibility, efficiency, and scalability your business needs to thrive.

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Why Cloud Wholesale ERP is the Preferred Choice

While some companies may still benefit from on-premises ERP solutions, there are several compelling reasons to switch to a cloud-based ERP system:

  • Cost Management
  • Data Security and Compliance
  • Future Proofing

Cost Management

Managing costs effectively is a priority for any business. Cloud ERP systems offer a more predictable and scalable cost structure:

Subscription-Based Pricing: Cloud ERP solutions typically use a subscription-based pricing model often referred to as Software as a Service (SaaS), spreading costs over time and reducing the need for large upfront investments.

Scalability: As your business grows, you can easily scale the system to accommodate additional users or increased transaction volumes without significant additional costs.

Data Security and Compliance

Ensuring data security and compliance with industry regulations is essential. Cloud ERP systems offer robust security features and compliance support:

Enhanced Security: Cloud ERP providers invest heavily in security measures, offering advanced protection against data breaches and cyber threats.

Regulatory Compliance: Many cloud ERP systems include industry specific features to help businesses comply with industry regulations, such as reporting regulations and requirements around tracking inventory.


According to a 2022 survey, “57% of SMB workloads and 56% of SMB data resided in public clouds, with a further 6% of each planned to move into the cloud in the next 12 months… The cloud market is projected to be worth $376.36 billion by 2029” This trend highlights the increasing preference for cloud solutions due to their adaptability and long-term benefits.

Transitioning to a cloud wholesale ERP system offers numerous advantages, from cost savings and scalability to enhanced remote access and regular updates. As you evaluate your options, ensure you consider all factors, including company size, infrastructure, staff availability, user numbers, and budget. Making an informed decision based on a comprehensive evaluation will support your company's growth and efficiency in the competitive wholesale distribution market.

Embrace the future of wholesale distribution with a cloud ERP system and unlock the full potential of your business.