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Debunking the top 5 myths around cloud ERP

With the global enterprise resource planning (ERP) software market forecast to grow to around 100.7 billion U.S. dollars by 2025, it’s no wonder more and more professional service organizations are looking to capitalize on the benefits. But, as with all technology, there are myths and falsehoods doing the rounds that are causing some businesses to question whether it is right for them. As globalization tightens the market for many service-based businesses, it’s essential organizations exploit all the tools available to give them a competitive edge, so with this in mind, here is our take on the top 5 myths:

True or false? Cloud ERP has security vulnerabilities

False. On premise software is installed locally, on your computers and servers, whereas cloud software is hosted on the vendor's server and accessed via a browser. This means that security for on premise rests firmly on your organization’s shoulders – if you have information stored in a non-secure location, or you miss an update, or your network security fails, you will be vulnerable. The business model of all ERP providers depends on first-class, superior security, and billions have been invested in cloud security and cyber experts. Using cloud ERP means your data is protected 24/7. In fact, it is safer with the right cloud-based solution than it could ever be on-premises. Gartner, in fact, predicts that, through 2025, 99% of cloud security failures will be the customer’s fault, not the security provider’s.

True or false? Cloud ERP can be more sustainable

True. Without the need to power on-site servers, cloud computing offers the opportunity to significantly reduce energy consumption. Recent studies have shown that a switch to the cloud can reduce carbon emissions by 30-90% depending on the size of the organization and number of users. The opportunities and advantages that a cloud ecosystem offers include instant sharing of digital documents on any device, from anywhere. By switching to a cloud-based computing system, your business will rely less on hardware and physical machines, will use less energy, and will reduce its environmental impact. More importantly, this environmental sustainability will lead to increased profitability due to enhanced efficiencies, reduced costs, and more sales. 

True or false? Cloud ERP only benefits IT

False. It has organizational-wide benefits. An ERP platform is a business asset that requires input from across the organization and serves as an integral part of business operations. When a business recognizes the potential of cloud ERP and concentrates operations around it, they will maximize the value that it provides. While IT plays a vital part in ERP implementation and maintenance, all business functions and departments have a role to play in its success. Cloud ERP acts as a central hub for all information across the entire organization, eliminating the need for separate databases. This streamlines processes and breaks down siloes, increases efficiency, and prevents data re-entry, thereby improving the productivity of multiple business functions, including finance and accounting, HR, procurement, and project management. These benefits of cloud ERP are growing in importance as professional services organizations continue to operate with virtual or hybrid working models.  

True or false? Cloud ERP is too expensive

False. It is more efficient. Cloud ERP provides one source of accurate, real-time information, which reduces administrative and operations costs and allows businesses to make use of their money in other, much needed areas. A Cloud ERP is an investment that can increase efficiency and optimize processes across the enterprise, which will lead to an increase in successful projects and customer satisfaction, and will ultimately deliver a high ROI and huge cost savings for years to come. The cost to most companies is highly dependent on their starting point and ability to govern and optimize cloud consumption once there. However, it is true to say that many companies that have moved to a cloud ERP have experienced cost benefits from the shared-resource model and autoscaling.

True or false? Cloud ERP means a loss of data control  

False. Although concerns over the loss of control of ERP data was once a talking point, guarantees and service level agreements and other terms and conditions have ironed out these worries. Your data is still yours, and you will be able to take advantage of whatever customization suits your needs. Along with enhanced security, moving to cloud ERP provides round the clock support so you need never worry about loss of control.

How can Unit4 help you?

Unit4 provides ERP platforms specifically designed for the unique needs of professional services organizations.

And our next-generation HCM and FP&A tools help you to manage and develop your people, attract world-class talent, and ensure and proactively encourage engagement, learning, and development.

To discover more, click here to book a demo and see what our ERP solution can do for your organization yourself.