Understand your Cloud ERP system
For better understanding of your Cloud ERP, or Cloud Enterprise Resource Planning, we have to take a look at the individual parts and what these consist of.
In practical terms, the term cloud ERP refers to a system that runs on a service provider's cloud-platform. A cloud-platform is a term for software, services and services that are made avalible through the Internet by a service provider.
The term "cloud-platform" itself is a somewhat elusive quantity, as it can be difficult to define what it is exactly it covers. Of course, there is not a physical cloud, but instead a large number of physical servers that are divided and sold as storage space or services, on which among other things, cloud ERP systems also run.
With a cloud-platform, the ordered IT-solution can be scaled up and down, so that only the needs of the individual company are paid for. That is, when a system runs on a service provider's cloud-platform, a company has the option of accessing it through the Internet, so all that is is nedded to access the system is an Internet connection and a browser.
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Possibilities with Cloud ERP
During the COVID19- pandemic, companies with a cloud-based system had a huge advantage. According to Forbes magazine, these companies experienced an advantage, since various restrictions meant that the society was in complete lockdown and only people with a socially critical job-function were allowed to come to work, whereas companies with cloud ERP could continue working from home. Here, companies that worked exclusively from location-based workplaces were forced to think outside the box in order to keep tehir heads above water. Here, the prviously metioned companies with cloud ERP solutions, on the other hand, could easily set up workspaces at home, so that the daily workflow could continue, since the cloud-based ERP system allows both customers and employees to access the system where they can access and send all necessary data online.
"The lockdown and remote work necessitated by the COVID-19 pandemic was an unexpected reality check for organizations of all sizes. The restrictions imposed by the pandemic turned the world upside down, with industries such as travel and hospitality grinding to a halt and many businesses experiencing survival challenges."
Forbes also highlights that companies that did not previously use cloud-based solutions quickly saw the benefits and had it implemented. The migration to cloud-based solutions therefore accelerated more than ever during the pandemic.
"Just a few months into the pandemic, Microsoft CEO Satya Nadella said the company had seen two years of digital transformation in two months as its costumers began adopting cloud solutions"
As mentioned, a cloud ERP system is avalible to its users as long as there is a Internet access and a broser where the system can be opened. Therefore, such a system can be accessed both from mobile devices as well as from desktop computers. A cloud ERP system becomes the most effective and most important tool when it is implemented in a company - this applies through all work processes and collection of data. The system provides both efficiency in everyday life, but also in unforeseen circumstances where you have to think differently - for example during the pandemic.
Basic concepts
- When speaking about ERP Systems
Implementation
ERP-software can be implemented on-site/on privately hosted servers, or purchased in an "as a service" model. Cloud ERP functionality can usually be delivered more quickly, although in both cases companies must devote time for planning, data migration, customization, configuration and staff training.
Read more about how VK DATA handle the implementation of an ERP system in a company
Cloud-based ERP
A cloud-based ERP is, as mentioned, hosted offsite on the ERP service provider's servers and is delivered as a service accessed via a webbrowser. The service provider is responsible for the application, data storage, underlying infrastructure and installation of security updates and feature upgrades.
On-premises ERP
Here, the ERP systemet is installed locally on the company's computers and servers. The system is administered after installation by internal- or consultant IT-employees. The software and its supporting infrastructure are managed, stored and maintained internally. Companies using on-premises ERP incur additional costs for maintenance, troubleshooting, additional software updates and cusomizations. Antivirus and security software, as well as storage and server backup systems are also required, but will be an additional cost.
Hosted ERP
A company or a hosting provider manages the deployment of ERP software and associated infrastructure. Hosted deployment models are often used when companies seek to outsource IT operations. Although this setup of an ERP system provides some cloud benefits, it is not the same as an "as a service" model.
Safety
With a cloud-based ERP system, a secure and encrypted connection is achieved between a cloud-based ERP supplier and its costumers.
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Subscription
With a cloud-based ERP solution, the company usually pays a fixed subscription fee at certain time intervals (yearly or monthly) to use the software. This fee usually includes all software maintenance and upgrades and may be charged per user or per Corporation.