We are now very familiar with the advantages that cloud computing offers, such as: reduced IT costs without the need for investment in hardware and infrastructure, reduced implementation time, and fewer teams involved.
The list of benefits gained from using a cloud-based system is extensive and compelling, which is why companies need to carefully consider this topic.
We know that there are some cost reductions associated with using cloud computing that aren't immediately obvious from the initial analysis, such as: implementation, customization, annual maintenance, system upgrades, and access methods.
Maintenance is a highly lucrative revenue stream for traditional ERP (Enterprise Resource Planning) system vendors who treat their clients as a captive audience. These vendors can achieve profit margins exceeding 90% on maintenance fees. Despite the significant investment companies make in these maintenance contracts, traditional ERP systems do not invest proportionally in modernizing and making their systems more competitive to meet customer needs.
When ERP systems are not cloud-based, downtime for updates is necessary, leading to decreased team productivity due to system inactivity.
Furthermore, using systems with local servers also makes it more difficult for employees to access important data when they are traveling — or when they are working from home.
So why not consider a reliable cloud model?
Cloud computing has been one of the most talked-about trends in the IT industry for several years.
The cloud represents a market shift with a major impact on business. Currently, we see companies of all sizes and sectors running their mission-critical applications in the cloud.
We know that cost remains a dominant driver for cloud service investment. However, there has recently been a shift in how some companies are approaching cloud implementation – they have changed how they analyze their investments, moving from a tactical, short-term investment profile to a more strategic, long-term, and transformative one.
Oracle NetSuite ERP case studies are full of examples from companies of all sizes across various sectors that have achieved a significant ROI (Return on Investment) in terms of reduced maintenance costs and IT staffing, since no specialized personnel are needed to customize the systems.
The Oracle NetSuite ERP system offers the best "cost-benefit" ratio on the market.
It works like this: the company invests in an annual subscription with a 100% cloud-based infrastructure, without needing to worry about any additional costs, only ensuring internet access.
All costs related to backups, version updates, patches, maintenance, servers, and other expenses are included in the annual subscription.
Furthermore, Oracle NetSuite ERP is the world's largest cloud-based ERP/CRM and e-commerce platform, with over 40 customers spread across more than 160 countries.
