Less Capital Output
With traditional, legacy on-premise ERP, there is a large upfront capital investment in hardware, servers, and infrastructure. Cloud ERP is managed and maintained by software and hardware experts in large, secure data centers. Manufacturers simply pay for the service they need. Subscription-based pricing is “pay as you go,” providing the option to choose how much—or how little—functionality to buy. This involves very little upfront costs.
Once cloud ERP is active, manufacturers merely need an online connection to feature new users and locations. Because there’s just one instance of ERP software shared across the enterprise, they will both add and fully integrate new production locations quickly. there’s no software installation—new locations are simply added to the database and hook up with it via the web.
Infrastructure Cost Savings
As mentioned previously, cloud ERP offers a huge opportunity for infrastructure savings. From servers to database systems to middleware, the prices to exchange, upgrade, and maintain a standard ERP system are often a huge hit thereto budgets and resources—dollars which will even be funneled back to the budget to fuel innovation. Cloud eliminates the necessity to manage infrastructure, maintenance, or software versions and fixes.
Quicker Return on Investment
Cloud ERP is far faster to deploy than traditional, on-premise systems. With no upfront capital investment and no software to put in, manufacturers can start benefitting from ERP capabilities quicker.
Improved Opportunity Costs
Software loses value if it’s not routinely upgraded. Unfortunately, most manufacturers don’t upgrade with every new release, falling behind by a few revisions. They could be missing out on new features until that next upgrade, which could be years down the road. Cloud ERP is versionless, adding constant value with real-time enhancements that can be used immediately. With no upgrades and no ERP software or hardware maintenance to manage, manufacturers can get out of the IT business and focus more resources on production and driving results.