You've certainly read or heard about the benefits of adopting a cloud-based ERP. What you may not know is that few solutions are 100% cloud-based.
That is, many ERPs are built and coded to run locally. Later, they are hosted on a cloud provider and marketed under a software-as-a-service model.
At first glance, this may seem like just a detail, but in practice, it makes a big difference.
Below you can learn more about these two different approaches and discover the benefits of a 100% cloud-based ERP. Check it out!
Cloud-based ERP vs. cloud-hosted ERP: what's the difference?
A 100% cloud-based ERP system is designed from the ground up as a cloud solution. That is, vendors code their software to work in this environment, emphasizing aspects such as maintenance, management, multi-tenancy, security, and data redundancy.
Other services labeled as cloud are not true software as a service. Specifically, they are local software hosted in a private or hybrid cloud.
While it's true that ERP is delivered to the customer via the cloud, a solution that is only hosted in the cloud has limitations in scalability and flexibility, for example, since the solution was not natively developed to operate in that environment.
Benefits of a 100% cloud-based ERP
There are many benefits to using a true cloud-based ERP system, such as Oracle NetSuite, that impact all areas of your business. Among them, it's worth highlighting:
Seamless and discreet updates
One of the main characteristics of a true cloud ERP is that it is... multi-tenancyThat is, an architecture in which a single instance of a software application serves multiple clients, with complete data segregation.
Therefore, when it comes to updates, it is this software – the main instance – that is updated, not the client's own ERP software.
On the other hand, in cloud-hosted solutions, each client uses their own version of the system. Therefore, when an update is released, the provider needs to update each client individually.
In other words, only with a true cloud-based ERP can you be sure you're always using the latest version.
Another benefit is that updates to 100% cloud-based software are usually done overnight and in the background. Therefore, there is no need to pause business during the update process.
With NetSuite, for example, when a new feature is launched, the client has immediate access to it, without any downtime or services being unavailable to employees.
full customization
Although all users are accessing the same platform, a true cloud-based ERP solution, such as Oracle NetSuite, also allows customers to customize their own application.
These customizations, which can be easily made with the help of an implementation partner, allow a company to tailor the software to its own business processes in order to improve its productivity and gain better insights from its data.
It's important to emphasize that these customizations continue to function the same way whenever an update is made.
On the other hand, when it comes to cloud-hosted ERPs, customizations are generally more time-consuming and expensive. Furthermore, there's no guarantee they will function perfectly after updates.
Access real-time data anytime, anywhere.
One of the main benefits of using a cloud-based ERP is that you can access your system from anywhere, on any device. All you need is a web browser and an internet connection.
This way, your teams can always stay up-to-date, whether they are working in the office, at home, or in the field visiting a project or client.
Safety, uptime, and disaster recovery
Companies need to keep their data secure so that it is protected against breaches and unauthorized access.
With a true cloud-based ERP, although everyone uses the same software, the system is configured in "layers" so that each client can only access their own data and customizations.
Solutions like Oracle NetSuite feature rigorous 24/7 monitoring tools and have controls and policies that ensure robust data and application security.
Oracle NetSuite also features robust data management processes and infrastructure that provide complete peace of mind for businesses. All data is fully replicated, backed up, and available whenever needed.
Conclusion
Choosing a truly cloud-based ERP system can be crucial to your company's performance and business success.
Therefore, when choosing your system, don't hesitate; count on the accessibility, continuous updates, and enhanced security of Oracle NetSuite's true cloud offering.
To learn more about this solution or to find out how to implement it in your company, speak with one of our specialists!
