Enterprise resource planning (ERP) is the key to integrating different business functions within an organization. Its use is common in companies of different sizes due to the benefits it brings. What about cloud ERP?
This is a type of business management software that can boost internal processes, you know? But before adopting it, it is essential to know basic concepts about the technology.
How does cloud management software work? Is there a cloud ERP for small businesses? In this article we will explain everything you need to know about this topic.
What is a cloud ERP?
A cloud ERP is an integrated system that works on the Internet and allows you to manage all of a company's processes and information. In other words, it is not necessary to install the system on the company's computers, as it is hosted on remote servers.
Like other types of ERP, it covers processes and tasks from finance to inventory, sales, production, logistics, human resources and much more.
Its difference is that, as it is based on the Internet, it can be accessed from any location and device with an Internet connection . Thus, the data is stored in the cloud and updated in real time.
How does cloud management software work?
Cloud management software works through an online platform that offers different modules and functionalities to meet the needs of each company.
To better understand how this works, consider the vietnam whatsapp data following aspects:
Internet Access: Users access the software through a standard web browser or specific applications.
Collaboration and sharing: The system allows multiple people to access and collaborate on the same data and projects simultaneously.
Cloud Infrastructure: The provider maintains, scales, and manages the necessary infrastructure (servers, data storage, and networks) in its data centers.
Updates and maintenance: These are the responsibility of software providers and are generally applied automatically, without the need for user intervention.
Data storage: Stored in the cloud, typically in databases. This data is appropriately organized and structured to allow for efficient retrieval and analysis.
Security: Providers implement various security measures to protect data, such as data encryption, user authentication, firewalls, regular backups, and protection against cyber attacks.
Features and Customization: Cloud ERP system offers a variety of features to meet the specific needs of different businesses. Some systems allow customization to meet the unique demands of each organization.
Scalability – Cloud management systems are designed to be scalable, meaning they can adapt to the ever-changing needs of businesses. As the business grows or requires additional features, the software can easily be expanded to meet these demands.
Do you understand how cloud management software works? It is very different from on-premise ERP.
What is the difference between cloud ERP and on-premise ERP?
The main feature of an on-premise ERP is its physical installation on the company 's hardware and servers . It is managed by the company's own IT team. Cloud ERP is completely online and is provided through a subscription -based service .
As we will see later, cloud ERP has many benefits. Not surprisingly, the cloud ERP market was valued at around $44 billion in 2020, but there are growth forecasts that it will reach $141 billion by 2028.
Let's learn about the types of cloud ERP so you can better understand the possibilities for your business.
What are the types of cloud ERP?
Cloud-based tools have their own distinctive features. Therefore, before implementing this solution, it is crucial to understand that not all cloud options are created equal.
Discover the different types of cloud ERP available below:
Multi-tenant : The company uses a network architecture shared by multiple customers of the provider, which is responsible for updates, security, and scalability. Each organization's data remains isolated and inaccessible to others. This is a cheaper option, but offers fewer possibilities for customization.
Single tenant : the cloud ERP will be exclusive to your company, and your data will be stored on private servers. However, all operations can be performed remotely, in the cloud. The advantage of this model is having greater control over the environment, but the costs are higher.
ERP in public or private cloud: The multi-tenant model is usually implemented in the public version. On the other hand, in the private model, users access the system through a remote application, using a Virtual Private Network (VPN).
Hybrid Cloud ERP – A combination of private cloud, public cloud, and if necessary, on-premises components. An ERP implemented in a hybrid model offers greater flexibility, allowing you to leverage the best of both environments.
The advantages of a cloud ERP system
A cloud ERP can bring many advantages to your company. Check out some of them below:
More security
One of the main benefits of a cloud ERP system is the security of your company's data.
Since they are stored on remote servers and protected by advanced encryption and backup , you are not at risk of losing them or suffering cyber attacks.
Additionally, you can define access levels and permissions for each system user and have automatic backups of information and data redundancy for quick recovery.