Cloud based ERP systems have recently been growing in popularity. This is so because cloud based systems are both low cost and highly efficient automation solutions. Though cloud based solutions are seen with certain amount of suspicion by some of the industry leaders, here we look at why some of the strategic reasons why cloud based ERP solutions are the future

Data Safety

The general barrier to adopting cloud is the perception that keeping data off premise increases security risks. However on premise data storage is more prone to security threats than cloud based remote servers. With vendors supplying cloud based solutions to thousands of customers, security becomes a more critical aspect. Hackers generally target outdated systems which do not have the latest security patch. Out of thousands of On-premise automation systems, at least few of them are likely to lack this latest security patch, making them prone to attacks. But on cloud the risks associated with security threats are lesser as security updates are rolled out immediately and universally.


Automation solutions which are internally built can take months or years to complete from scratch and will also cost a lot of money, whereas cloud based solutions are affordable, highly efficient and instantaneous. These cloud based solutions don’t break the bank as they require minimal to zero capex. Also they don’t require huge amounts of investments at the same time as usage of cloud based solutions are usually based on affordable monthly subscriptions.

Disaster recovery

Companies which rely on cloud based services no longer need disaster recovery plans as the cloud service vendor already has it covered. It was recently found in a study that companies which were using solutions on cloud had nearly 4x faster recovery times during disasters compared to traditions on premise solutions.

Cloud based solutions empowers SMEs with certain features which enables them to compete with the big businesses. This bridges the gap between the ways in which big and small companies function, SMEs are now finally equipped with highly competent technology which allows them act faster and better compared to their big established competitors.

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