What is Cloud ERP Software System
What is Cloud ERP Software System, Types and development cost? Cloud technology is no longer a buzzword, its market size reached 64.7 Billion USD in 2022 and is not expected to grow at a CAGR of 15.37% and generate around 175 Billion USD by 2029.
There are countless reasons why cloud technology is replacing traditional on-premise storage methods for businesses, including but not limited to scalability, cost-effectiveness, minimal complexity, and security.
On the other hand, ERP or Enterprise Resource Planning systems support automation to help companies run their businesses efficiently. And together with cloud technology ERP systems gain the ability to retrieve and analyze data in near real-time.
So, in this blog, we will learn about Cloud ERP software, its advantages, important components, types, and development cost.
What is Cloud ERP Software?
Before we move ahead and learn about cloud ERP software, let’s understand what ERP systems are. Enterprise Resource Planning (ERP) software is a system businesses use to manage daily operations and processes like supply chain, procurement, accounting, risk management, etc.
It also assists businesses in planning, reporting, predicting, and budgeting according to financial performance data.
Read: ERP Application Development
On-premises ERP software has helped organizations gain insights and boost productivity. But with the increasing competition, digitalization, continuously changing user needs, and minimal flexibility to adapt to the changes, traditional on-premise is getting replaced with cloud ERPs.
Read: Introduction to Enterprise Resource Planning (ERP)
That being said, cloud ERP software enables all the benefits of an on-premise ERP system but lacks its downside such as higher upfront costs and longer implementation time.
Also, cloud ERPs offer flexibility to organizations, allowing them to add or modify features and functions to keep up with the market changes.
Types of Cloud ERP Systems
Cloud ERP systems can be categorized into Multi-Tenant SaaS, Single-Tenant SaaS ERP, and Private Cloud ERP.
Multi-Tenant SaaS ERP
Multi-tenant ERP runs with the fewest features and modules and has little to no customization. It is also the least expensive and easily deployable option.
It is an ERP software that serves multiple organizations. Despite the fact that different organizations are using the same multi-tenant SaaS ERP software on the same server, the data of another organization is unavailable to them.
Single-Tenant SaaS ERP
It offers each company to have its piece of ERP system running on the cloud platform. In simple terms, the data of an organization is hosted on a cloud provider’s platform and runs a unique instance.
The customer gets cloud subscription pricing and flexible computing power while the ERP system and data are restrained from other customers. The main advantages of using single-tenant SaaS ERP are improved privacy and higher security.
Private Cloud ERP
It is the ERP software that runs on a private cloud infrastructure hosted by a third-party provider or ERP vendor. It also has a subscription pricing model like single-tenant SaaS with the ability to scale resources as needed.
Needless to say, private cloud ERP is a service that is not shared with other businesses.
Read: Top 10 Common ERP Mistakes and How to Avoid Them
Advantages of Cloud ERP System
Now that we have a better understanding of what a cloud ERP system is and its types, let’s move ahead and look at the advantages it offers to an organization.
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Better Scalability
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Ease of Implementation
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Lower Operating Cost
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Enhanced Security
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Storage Resilience & Access
Read: Edge Computing vs Cloud Computing
Better Scalability
The ability to scale the servers up according to the requirement is one of the major advantages that comes with Cloud ERP software. In simple terms, it allows an organization to start with basic software with minimal features and add more as per the demands.
Ease of Implementation
Compared to on-premise ERP software, cloud ERPs are easier and faster to implement as they can be configured in just 24 hours. This ease of implementation comes with the non-requirement of setting hardware or training the IT team.
Lower Operating Cost
Another important benefit that comes from using Cloud ERP is the lowered operational cost. In the case of on-premise ERPs, businesses need to handle the cost of IT staff, consultants, server purchasing, maintenance, on-call resources, updates, etc.
While using cloud ERP there is no need to pay for infrastructure, IT staff, maintenance, updates, security, etc, as it is managed by the cloud provider.
Enhanced Security
One of the most crucial advantages of cloud ERP is enhanced security. Cloud providers used for hosting ERP software handle the security and compliance of the organization's data. They also offer backup and disaster recovery to avoid software failure.
Storage Resilience & Access
While using on-premise ERPs requires time and money to transfer data to a new system, Cloud ERPs house data redundantly in data centers, allowing easier access to the data over the internet and streamlining business processes.
Read: What is Cloud Migration: Tools, Strategies, and Services
Cost of Developing a Cloud ERP Software
Developing cloud ERP software can cost anywhere from $23,000 to $150,000. The development cost greatly depends on multiple different factors like tech stack, cloud provider subscription models, features, functionality, complexity, scalability, and hourly rates of the developers you are going to hire.
Read: Cloud Application Development
Typically, hiring developers from countries like India rather than the US can help you save up a lot in hourly rates. It is so because outsourcing experienced developers from the US will cost you around $100 to $150 per hour, while hiring experienced developers from India will be between $15 to $50.
And if you are someone who is looking to build a cloud-based ERP system for your organization, then we at Decipher Zone Technologies can help you in developing a customized cloud ERP system that meets your requirements under your budget.
So, what are you waiting for? Contact our experts to get a personalized quote now!
FAQs: Cloud ERP Software System
What does Cloud ERP mean?
Cloud ERP software enables all the benefits of an on-premise ERP system but lacks its downside such as higher upfront costs and longer implementation time,
What are the different types of cloud ERP?
Multi-Tenant SaaS ERP, Single-Tenant SaaS ERP, and Private Cloud ERP are the three major types of cloud ERP used by businesses.
How does Cloud ERP work?
Cloud ERP software is hosted on the cloud platform provided by cloud vendors and is managed by their IT team. This software system work using high-speed internet-connected technologies.
It is also made available to users on desktop and mobile devices. From remote worksites to customer sales meetings, cloud ERP software allows you to access any information whenever needed and also provides the ability to scale the resources.
