[Guest Post] How to choose between local and cloud ERP system

The adoption of an enterprise resource planning (ERP) system presents numerous benefits for a company, integrating the sectors and optimizing its management. Knowing all these benefits, you are eager to invest in an ERP system, but don’t you know which one is best? Choosing the right kind of ERP software for your company is rather a challenging task. At this time, it is very important to consider your needs and make the right choice. Among the many options available, one feature that may raise questions is the decision between a cloud or local cloud computing solution. Here are some advantages and disadvantages of each system to help you with this choice.

What is local or cloud ERP?

The basic difference between the local ERP system and an ERP in the cloud is very simple. A local ERP is installed on the company’s own servers and computers. In this case, the company is responsible for its management and maintenance. In the case of cloud ERP, the system is accessed over the Internet and paid on a subscription basis. The software itself is neither owned nor licensed by the end user, but is provided as a service. Cloud technology is a watershed in the ERP industry because it offers enterprise-class software at an affordable monthly price and greater flexibility. The type of ERP solution you choose will have a significant impact on your business. In the end, the functionality of the system is what determines which system you choose. Here are some considerations when choosing between a local or cloud-based ERP solution:

Costs

A local ERP typically involves larger investments to purchase and manage software and hardware, servers, and related facilities. This type of system also requires IT resources to keep the system running. The initial costs of the cloud system are usually much lower because there is no technical installation required. The cloud ERP provider hosts and supports, giving you all the IT assistance you need. Generally, these systems work for a prepaid subscription model.

Updates

Software updates for local solutions are not always straightforward. When it’s time to update your software, your IT staff may have to restore your custom settings and install a newer version of the database. This causes some companies to avoid updating their ERP software, rendering the technology obsolete. Cloud ERP solutions are automatically updated by the provider, so you’re always using the latest version. In the cloud, regular updates do not affect your customizations and integrations.

Safety

The security of the data in a local ERP depends on the procedures and equipment of the own organization, being it adopting protection tools in relation to virtual attacks and frauds in the system. You will also need storage for backups. In the case of cloud ERP, the system provider is responsible for security. These systems typically integrate recovery and backup services.

Accessibility

As mentioned earlier, cloud ERPs have an advantage over accessibility because they can be accessed at any time, on any device, as long as there is an internet connection. Although more laborious, you can configure remote access on local systems. This will require the installation of virtual private network (VPN) software on each device, seeking access to the ERP. If you have multiple offices or branch offices that require access to the on-premises ERP system, you may need to configure a secure WAN infrastructure.

Customization

The customization feature is easily available on a cloud system. You can choose the one that offers the best facilities and meets your needs and business requirements. You can also customize and integrate the local system, but this includes an additional cost, and requires rework in software development.

In conclusion, every business is unique and has its needs as well. Therefore, when choosing an ERP system, it is important to choose the right software, which offers less limitations, more security and at a lower cost. So it is good to look at all the above factors and make a smart decision when choosing the best ERP system for your company.


ERP Cloud: get to know what it is and why you should have it in your company

Ever heard about ERP Cloud? No? This means that your company has not harnessed one of the most efficient tools when it comes to business management. Let us explain why you need to insert this software into your business. Organizing the administrative activities of a company seems complicated, especially for beginner entrepreneurs. But this impression need not be so. With the democratization of technological resources, small and medium-sized companies have at their disposal incredible tools to employ management to the business. Among these is the ERP Cloud. But what is it, and how does this technology work? Let’s see!

Learn more about ERP Cloud

ERP stands for Enterprise Resource Planning. It is software that integrates all the departments of a company, aiming at a better circulation of information, giving greater agility to the processes, favoring a considerable reduction of costs. So let’s think of a retailer that faces problems with inventory control and financial management, two key industries in this type of business. How does an ERP Cloud work in this situation? The first step in the implementation of this program will be the registration. Gather all product information, values ​​and customer data on the platform. From there the other features can be started. This store that we use as an example, will now be able to formalize an inventory of your inventory, and control the expenses and revenues of the financier.

The main advantages of Cloud ERP

The company that adopts the ERP Cloud will have the following benefits:

  • Consult anywhere – having a program that works online is undoubtedly a great advantage. Wherever you are, all you have to do is connect to the internet, and you can make all the inquiries and releases you need. No process hangs if the manager needs to take a trip, for example.
  • Reporting – having consolidated information in just one click is another very interesting tool for this type of software. Managers who need to understand what has been happening in a given period, you just need to apply the filters you want and download the report.
  • Electronic Invoice Issuance – With so many changes in the country’s tax legislation, hiring a system that is current with this and compatible with the Revenue or Treasury sites, is an effective solution. With the ERP Cloud you will be able to issue the different versions of the electronic invoice, and also choose the type of Digital Certificate that you want to work with.
  • Issue of Carnets – linking your sales to a banking system and issuing bank statements, is more than possible with this type of software. You can issue a registration card for purchase lots.
  • Sales control – tracking the budget until the conclusion of the sale, is also possible using the ERP Cloud.
  • Inventory control – updating inventory, and controlling the incoming and outgoing goods will no longer be a problem.
  • Financial control – accounts payable and accounts receivable are fully met in that program. There will no longer be any need for the “unique worksheets” that each employee creates to track invoice and other payments.
  • End of the paper – comes from the endless pile of papers that take the tables of your company. Besides having a high cost, it is synonymous with delays and rework. Ending paper circulation is a symbol of process optimization.

Information storage security

All of these advantages join the storage security of cloud information. Cloud is a way to save softwares and files in the virtual environment. All in a secure, and formable way, that is, as your business grows, the space to store information in the ERP Cloud increases. Of course, before you close with an online ERP software provider, you need to check out details like that. See also the question of support, and if it is possible to fit some characteristics of your business into the system interface. It is interesting to hire a system that can incorporate or exclude fill fields, for example. Regarding the Cloud environment, it is completely secure, uses the best in encryption systems, which will protect the information generated in its administrative routines. Is it clear why your company needs to have an ERP Cloud? We have seen how much this tool will potentiate your venture. Enough of so many obstacles within the management of your business. Install the software and prepare your company for new challenges.

Guestpost by GestãoClick