SAP Business One Cloud: Moving from On-premise to Cloud

As some of the limitations and barriers to on-premise solutions have become more apparent, more businesses are turning to cloud solutions instead. In fact, the cloud-based ERP market is projected to reach $32 billion by 2023. The reasons are many.

A cloud-based ERP platform doesn’t require any upfront capital expenditure, which could run in the millions for an on-premise solution.

Cloud-based solutions are offered via an affordable subscription fee, which allows a smaller business to build an ongoing operational expense into its budget rather than requiring a huge initial capital expense. A limited budget doesn’t mean a business will sacrifice any functionality when it employs a cloud ERP solution; it frequently only means a faster setup, easier support, and less initial financial outlay.

In the past, ERP was viewed as an undertaking reserved for large companies because rolling it out was such a large project. Cloud ERP has been a game-changer for this calculus because implementation time is minimal, and the cloud vendor, rather than the business itself, handles all the hardware and software management.

This makes for easier configuration and shorter training times. A rollout that once typically took more than a year now can be completed in as little as a few weeks. Providers have developed solutions with specific industry needs to be baked in, too such as pre-validation for life sciences firms.

Companies have enough to juggle without adding the complexities of building a complicated IT infrastructure and managing the skilled staff needed to maintain it.

Cloud-based ERP requires less maintenance and fewer IT services; the solution provider handles all the back-end needs of the system. Because the IT footprint is simplified, in-house IT staff can focus more on strategic projects and less on routine system maintenance.

Cloud providers roll out automatic software updates seamlessly with minimal disruption or downtime.

Software stays better secure in this environment, and it reduces IT headaches when things go wrong. Furthermore, these updates are included in the price of the subscription, so there’s no need to budget for additional upgrade costs—something that can sometimes be substantial with on-premise ERP solutions.

Cloud-based ERP systems are comprehensive yet flexible. You can get out-of-the-box business processes for all your departments and operations, and they can be easily adapted to your organization’s specific needs at the same time.

Just as important, IT resources can be scaled up and down as needed with a cloud solution. Today’s cloud-based ERP comes with built-in integration tools and an architecture that can be integrated with third-party systems, and there’s no worry about running out of storage or maxing out hardware. The ERP system can scale to meet your business needs today while providing growth capacity down the line.

When ERP is in the cloud, you can ensure mobility and connectivity much more easily than you can with an on-premise system.

Cloud-based solutions can be accessed by users wherever they happen to be, offering opportunities for greater productivity and efficiency. Furthermore, smaller businesses can integrate with eCommerce channels and connect to online supplier networks just as easily as larger firms can, which aids competitiveness. For the same thing to happen with on-premise ERP, there are a lot more fiddly integrations and third-party connectivity software that may or may not get updated as cloud services and other systems evolve.