Cloud ERP gives businesses access to their data and critical applications at any time from any location using any device connected to the internet.
Cloud-based application (also known as Software as a Service, or SaaS) that allows users access to software applications that run on public or private cloud infrastructure via the Internet. These infrastructure resources are operated in a state of the art data centres which are managed and maintained by vendor dedicated professional resources.
Cloud ERP has a very low upfront cost compared to traditional ERP implementation and license cost, and also a lower total cost of ownership (TCO), plus a fast return on investment (ROI).
While you may think that the only difference between Cloud ERP and on-premise ERP is where the software is physically located, but this is not completely true as there are several significant benefits that cloud ERP can provide over the on-premises solution. We will explain some of these benefits and advantages in this article.
The Cloud business applications have an added value to small and medium-sized businesses (SME’s) as it offers access to full-function enterprise solutions at an affordable cost without a huge upfront investment for hardware and software licenses. Using the right cloud provider, a company can rapidly scale their business productivity as the business grows.
Benefits of Cloud ERP
Cloud ERP has been proven to reduce costs in many ways because it:
- Avoids upfront costs for all computing infrastructure such as hardware and data servers
- Reduces IT support services because IT support is provided by the data centre
- Eliminates paying upfront for application software licenses in favour of a monthly fee
- Shrinks the cost of maintaining and supporting those applications since the cloud application vendor handles the updates and upgrades
The most important benefits of Cloud ERP is more than cost-savings and include:
- A fixed monthly cost so companies can use their cash on other business initiatives.
- Installation of hardware and software on servers or user devices is not required.
- Upgrade or downgrade the number of users anytime.
- Your data is managed by professionals with daily backup and disaster recovery.
- Your data is secure and safe from viruses or computers damage or malfunction as your data sits in a robust cloud infrastructure.
- It is easy for companies to expand geographically or open new branches once the internet is available, also there is no need to install hardware and software at remote locations.
Clearing Concepts about Cloud ERP
Talk about the Cloud is everywhere, and so are cloud buzzwords, which can result in confusion and misconceptions. Here is a brief discussion of the more common terms:
Subscription or Perpetual
- Subscription: The company pays an annual or monthly charge to use the software license. Upgrades to the software are included in the subscription price.
- Purchase (or Perpetual): These terms refer to when a company buys a software license. The company pays to own the license for life and also pays an annual maintenance fee for updates and upgrades.
On Premises, Hosted, or SaaS
- On-Premises (or In House): The company is responsible for the infrastructure (hardware, system software, communication hardware, software on user devices, etc.) and the deployment of the application software (implementation, support, upgrading, etc.)
- Hosted: Hosted application is usually a web application and not considered a cloud application or SaaS, its maintenance and upgrade are more difficult than SaaS systems, The company or hosting provider buys a license for the software, then deploy this software to its hosting infrastructure. The hosting provider manages most of the infrastructure but is not responsible for the application updates, upgrades or features development, it may be only responsible for software deployment.
- Software as a Service (SaaS): This method, is the only true real method that can be named cloud application technology, it is a combined software licensing and delivery model in which software is licensed on a subscription basis in a completely contained infrastructure built specifically for that purpose and managed by the application provider, all for a single price that is typically a fixed amount.
Multi-Tenancy and Single-Tenancy
- Multi-tenancy: Cloud applications is multi-tenancy applications which serve several customers using the same application server, this method will guarantee the quality of service and updates for all customers at the same time.
- Single-tenancy: Usually a web application hosted on a server, where each customer has their own application and data base, this method is hardarder to upgrade and maintain and it is more costy.
Difference between cloud providers
Beware that most legacy applications have been retrofitted to run on the web, it is re-engineered to work over the internet and using browser, although it is not designed to be cloud application, mostly it will be single-tenant hosted application.
Several vendors placed legacy software on a hosted virtual server, then they claim to have a “cloud-based ERP solution”. But without software that was architected with cloud operation in mind customers will not receive the quality or the experience of cloud service.
When looking for cloud ERP software, make sure that it is not only web-based but True Cloud!
The Benefit of iX Cloud
iX Cloud and iX ERP are flexible and cost-effective options for small and medium-sized businesses.
It is designed to overcome several issues in existing ERP solutions. This is done by:
- Choosing between several editions and add-ons that can suite your business needs.
- Hassle free service with fixed price.
- Scalable and managed cloud that can grow according to your needs.
- Access your data anytime from anywhere using any device.
- Extending the iXERP application capability by using a rich featured API for developers.
iXERP Cloud ERP offers all the flexibility above, plus safety and security, iX Cloud is maintained by iXDev professional team around the clock.
iXDev was built for the cloud since founded, so we don’t have an on-premises option and built all our solutions and services specifically to be cloud-based, This is written into the company’s DNA and gives our customers the benefit of having a real true cloud solution.