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Advantages And Disadvantages Of Cloud Based Erp

By Expert Author: Raj

cloud based erp is a type of web based enterprise resource planning (ERP) system which provides its functionalities is delivered through web browser via an Internet connection. This system manages, automates and tracks various business activities throughout the different levels in an organization. It handles wide range of tasks like product management, supply management, inventory management, tracking of production orders, Accounting, human resource management, backend operations management etc. This system keeps an account of information of various departments of an organization and shares it with departments and other business procedures.
In cloud based erp the erp solution provider charges a little amount of fees on a monthly or yearly basis from the business organization. This fee includes hosting of erp application on the web space allocated to the organization and managing it on behalf of the organization.
This is different from the traditional erp system where the organization first needs to purchase the license of the software, check for the hardware and software compatibility of the machine with the erp software, hosting and maintaining on their own servers. cloud on erp facilitates the installation of software on the web and can be accessible online.
Few tips to select the best ERP software for your organization:
Purchasing of ERP software needs to identify the type and requirements of your organizations:
• Some organization requires a single, self sufficient independent system to effectively manage all business processes. In this system there is no need to struggle with integrating them with other systems and problems arising out of faulty integration.
• In contrast to above mentioned systems, some organizations like to have one single system to efficiently manage processes of one single module example accounting. Accounting ERP software manages all the processes related to accounting efficiently. They provide advanced, reliable and sophisticated services for those modules.
• There are some organizations are not large enough, so they do not need large web space and highly reliable services. For them on-premise software systems is best option.

Let us see some of the advantages and disadvantages of Cloud based ERP systems

• It is easy and convenient to use. You require only a good speed internet and web browser to access all your company data. They have a user friendly interface which is easy to understand and work with.
• No infrastructure cost helps to reduce the organization expenditure. Also fewer employees are required so it helps them save on the salaries of employees and amounts spend on maintaining the infrastructure. Organization can make use of these resources to deliver better and advanced services to their customers.
• The Software solutions and its services requires a high speed internet connection and updated and latest web browser. If any of the two is not available as per the requirement then the software will fail to deliver its services.

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