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ERP entering the cloud

September 09, 2013

Large companies had better get ready—enterprise resource planning (ERP) is moving up and heading toward the cloud. For business leaders, this means they must learn a whole new level of technical jargon or partner with an IT staffing and services firm to find the professionals to accomplish the task for them.

ERP floats into the cloud        
ERP is the foundation of many major firms' decision-making processes. The application, which is located on a centralized server, generates real-time reports in addition to controlling how information flows into and out of a company. However, it is a time-intensive tool, requiring a team of individuals to monitor and manage it. As a result, an increasing number of companies are exploring how they can move ERP to the cloud. But can the cloud really simplify this application and still perform all the same functions?

According to a recent article in Cloud Tweaks, partnering ERP with the cloud is now seen as a best practice for IT departments and CIOs. The cloud is flexible, low-cost and can still accomplish the same tasks as a more traditional system. 

For example, the source explained that operating ERP in the cloud can reduce costs.

"Companies do not need to purchase a license for every user that uses the system. Instead, a company can simply pay a fixed amount for the Cloud ERP license and then everyone can use the system," Cloud Tweaks noted. "In a nutshell, Cloud ERP is [a] cost-effective solution for small and medium sized businesses."

Furthermore, the news source asserted, cloud ERP may offer companies better data management and security than traditional systems. Companies can move their data more easily when it's located in one central space, and providers typically offer security and privacy guarantees protecting users from any threat.

Enterprise cloud applications continue rise to the top        
InformationWeek's Enterprise Applications Survey corroborated Cloud Tweaks' assertions. The report found that ERP cloud applications constituted one of the top nine categories respondents said they plan to invest in over the next 12 to 24 months. While ERP cloud applications are still in their infancy, the survey noted that they are in the "likely to move within two years" phase.

For businesses, this may mean it's time to get moving. By working with IT staffing and services, they can best the competition.

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