Upgrade old ERP with cloud ERP
Enterprise Resource Planning (ERP) systems have played a critical role in streamlining business operations for over two decades. However, like outdated technology such as pagers, traditional on-premise ERP systems are becoming obsolete.
Gartner, an independent research firm, highlighted in a recent report that highly customized on-premise ERP systems would become legacy systems by 2016. This means they can no longer meet modern business needs and may instead drain resources.
Below are some of the major factors contributing to the decline of legacy ERP systems and the growing adoption of cloud ERP solutions.
Flexibility
Cloud computing has opened a new paradigm for ERP system implementation. The cloud has proven more reliable than on-premise servers. Improvements in internet speed and web application technology have enabled cloud-hosted ERPs to be as fast or even faster than on-premise ERP. Unlike on-premise software, which can only be accessed from the office, cloud ERP can be accessed from anywhere, at any time. As technology has changed human behavior, clients no longer want to wait for you to be in the office to provide answers. Mobile applications of these ERP systems ensure you always have all the business information at your fingertips.
Today’s businesses demand immediate access to data. Mobile apps for cloud ERP systems empower you to view real-time business information anytime, keeping you responsive and informed. Cloud ERP also offers scalable infrastructure, allowing businesses to increase or reduce hardware resources based on usage demands. This level of adaptability is not possible with legacy ERP systems, prompting many companies to switch to cloud ERP for improved operational efficiency.
Functionality
Over the years, IT managers have heavily customized on-premise ERP systems to meet evolving business needs. However, these customizations limit future updates and enhancements. In contrast, modern cloud ERP solutions provide advanced functionalities out of the box, making updates and upgrades seamless.
Additionally, cloud ERP systems are designed for interoperability, allowing easy integration with other applications and tools without hardware limitations. They are scalable and can evolve with your business needs.
For example, integrating an e-commerce store with an on-site ERP system can be complex and inefficient. In contrast, cloud ERP platforms offer plug-and-play integration with online sales channels, ensuring a connected and unified system.
Cost
Many businesses hesitate to upgrade their legacy ERP systems due to the initial investment already made and the potential complexity of an upgrade. These outdated systems also come with high maintenance costs and may cause operational downtime during upgrades.
Cloud ERP offers a more cost-effective alternative. As web-based platforms, cloud ERP systems do not require additional hardware investments. Companies save on upfront costs related to servers, hardware, and software licenses. Hosting fees are billed monthly or annually, making budgeting easier. Moreover, cloud ERP vendors manage server maintenance and system updates, eliminating the need for in-house IT teams and ensuring minimal downtime.
On-site ERP status: legacy
In recent years, the shift from traditional ERP systems to cloud ERP has gained significant momentum. While the core expectations from an ERP system remain the same, businesses now prioritize cost reduction, better functionality, and flexibility.
Legacy on-site ERP systems are no longer viable due to their rigid architecture and limited adaptability. In their place, companies are embracing cloud ERP platforms that offer robust, scalable, and integrated solutions suitable for modern business environments.
Conclusion
To sum up, the widespread acceptance of cloud ERP is reshaping how businesses operate. Its advanced features, flexibility, and lower costs make it a strategic choice over outdated on-premise ERP systems.
Still relying on an old ERP? Thinking about upgrading to a modern and efficient cloud ERP? Visit our ERP Implementation page to learn more about our expert ERP Implementation services.
