In an earlier blog, the topic was the Benefits of a Cloud Solution. This article focuses specifically on the advantages of a Microsoft Dynamics ERP cloud solution as a long-term investment for specialty contractors. In summary, the right cloud or Software as a Service (SaaS) solution grows with a business. It’s even accurate to say that the right SaaS solution promotes business growth. Here’s how on-premises ERP vs. cloud ERP systems compare when it comes to security, performance, and total cost of ownership.
System Security: On-premises ERP vs. Cloud ERP
Some contractors feel that it’s best to keep data security in their own hands and at their own location. That’s understandable, but it’s an important responsibility with many concerns. Data is the lifeline of any business. That’s not an exaggeration. Can any business risk having compromised financial, customer information, inventory, and/or resource management data? Instead of having to carry a full-time security expert on staff, many specialty contractors find it necessary to outsource backups and storage. A SaaS solution hosted by a Microsoft expert provides expertise peace of mind as your business grows. And, it’s included in your monthly software cost.
Improved performance is one of the key growth benefits of a cloud ERP solution. If you experience seasonal work fluctuations, your cloud solution provider can optimize your application availability as needed. Even unplanned surges in business that require heavier system performance should be transparent to its users.
Microsoft Dynamics provides ongoing upgrades and enhancements to its solutions. This keeps your system working optimally and is the best way to take advantage of new application functionality while maintaining predictable monthly operating expenses. And as you grow, you simply add speed and storage without having to replace your outdated technology.
Total Cost of Ownership (TCO)
If you’ve been in business for any length of time, you may have already experienced dealing with obsolete technology. The “cutting-edge” on-premises ERP system purchased six years ago was probably great the first year or two. Then your business opened a new location, it went through a staff restructuring, faster and less expensive technology hit the market, or all of these changes took place. ERP users found that they had difficulty keeping up with business shifts.
Studies show that the average lifespan of an on-premises software program is six to eight years. Imagine the expense and the headache of going through a complete system development, integration, and deployment that often.
SoftwareAdvice.com provides the annual costs of on-premises ERP vs. Cloud ERP or SaaS solutions.
Convergence occurs around year nine of ownership, which is precisely when the average life of on-premises software expires.
SaaS or cloud-based ERP systems provide a number of benefits to compliment this TCO. Monthly payment plans include (among other things) security and ongoing hardware and system updates for optimal functionality.
Look into your business’s specific needs. You’ll likely give serious consideration to a SaaS ERP for functionality, predictable monthly expenses, and an apposite TCO.