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Three Gains and Challenges of Cloud ERP Systems

3 Gains and 3 Challenges from Using the Cloud in Organizations

Reflections on Implementing Cloud Technology for your ERP System.

By: Kevin Son
Tekoa ERP
www.TekoaERP.com

The number of organizations trying to streamline their business operations through cloud computing is on the rise. Employing Cloud Technology for ERP systems is one way of supporting business processes by employing Internet-based services. Basically, what they want to do is move their business functions from on-site servers to the Internet.

3 Broad Categories of Cloud Computing

It is beneficial to understand three basic categories of cloud computing, prior to learning about what can be good and bad about putting your ERP system in the cloud.

Infrastructure-as-a-service

Instead of businesses buying all the servers, software, data space, and network supplies, all these services are provided by the vendor. In addition, the vendor just charges users based on how much resource they use. 

Platform-as-a-service

The vendor not only provides but also manages the operating system, database, and all others things necessitated to run certain platforms.

Software-as-a-service

Rather than having to buy a software license, the vendor runs the software application for all users. Additionally, the software is constantly updated.

It is critical that business owners weigh all the possible advantages and disadvantages of using the “cloud,” for an ERP system, and make the decision that is best for their business.

Below are some of the pros and cons of ERP cloud computing.

3 Gains


Reduced Cost
Cloud computing is helpful in reducing paperwork, lowering transaction costs, and minimizing the investment in hardware and all the resources to manage it. Moreover, some ERP cloud service providers offer small and mid-size organizations access to more sophisticated technology at reduced prices.
By employing the cloud service, businesses can also reduce the need for information technology workers. And sharing IT resources with other businesses reduces the costs of purchasing servers and licensing software.

Enough Space
In the cloud, there is unlimited space for businesses to use. Some cloud computing services ask businesses to only pay for the amount of resources they use. Business owners can later add more server space whenever they want to, as their business expands for example.

Easier Communication and Collaboration
Just as the name implies, it is much easier with cloud computing to collaborate with employees not only in different departments in the same location but also in distant locations, as services in the cloud can be accessed anytime from any computer.

3 Challenges


Temporary Unavailability
Most ERP Cloud providers offer contracted network availability. Just as in on premises systems, networks need maintenance and may be brought off line to apply updates, service packs and new tools. When contacting your ERP Cloud provider ask about network availability.

Ownership
Recently new challenges have risen surrounding the ownership of data residing inside cloud systems. To ensure you retain ownership of the data stored in the cloud, ask your ERP cloud provider about access to the data and how it can be retrieved if you terminate services. Tekoa Software does not take ownership of data and provides administrators access to live and backup data. However offerings from sites like SalesForce.com have raised questions about data ownership.

Privacy and Security
Make sure your company data will remain private and secured. Tekoa Software ensures maximum security and privacy for your business data, including options for data encryption. With multiple physical and digital security measures in place, Tekoa Software offers state of the art certified security that ensures today's cloud enabled enterprise that their data is secured and private.

By: Kevin Son

Kevin is an educated business process and Sage ERP 100 trained professional at Whitworth University.

For more information about Cloud ERP systems for your enterprise, visit, www.TekoaSoftware.com .
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