Myths and realities about implementing a cloud ERP

We've all seen the success that cloud solutions have had in recent years. And, of course, cloud ERPs have been no exception.

The arrival of the cloud has undoubtedly revolutionized the Information Technology (IT) market, bringing with it benefits such as:

• Greater data protection. This is because these are managed by specialized third parties with various data centers around the world. This ensures complete availability and integrity of information at all times, as they are regulated and certified to the highest standards.

• Greater number of integrations. Cloud systems offer many more ways to interact with other cloud applications, as they have APIs and connectors that facilitate integration. This allows you to integrate " Best of Breed " applications, such as Shopify and NetSuite .

This, without the need for them to be developed by the internal Systems area or incurring expensive projects.

• Greater accessibility to applications. It's no secret that today, businesses have access to a wider variety of applications at a lower cost.

A clear example of this is platforms like Zoom or Meet, where it's possible to connect with other people, record video calls, share videos, etc. All at a much lower cost than the IT team would have to develop a communications application.

However, despite the fact that these types of solutions have proven to offer significant advantages in terms of security, cost, and flexibility, some companies still have reservations about adopting a cloud-based ERP.

That's why today we want to clear up some of the most common myths surrounding this topic. Keep reading!

Cloud ERP: What's Myth and What's Real?

• “Cloud ERP systems are not customizable”

Does this phrase sound familiar? Often, when considering implementing a cloud-based ERP, people tend to think that these types of applications are limited in functionality and, therefore, won't allow for customizations that fit the business.

However, the reality is that the pace of growth and consolidation of cloud solutions is very rapid thanks to their support for technologies that allow for easy and rapid expansion and expansion of functionality .

So, even if your company has its own team of developers to design custom solutions, with a cloud-based ERP, you can rest assured that you'll not only be able to make adjustments to meet specific company requirements, but also that all users will remain on the same version (which will always be the most up-to-date).

Plus:

Cloud-based ERP software makes it easy to create niche applications that also allow for implementing best practices in each industry (fashion, manufacturing, distribution, etc.).

• “The licensing and subscription scheme is expensive.”

We often find that some companies think that on-premise solutions are more affordable than cloud solutions .

However, if you don't thoroughly analyze the total cost of local or on-premise systems , you're likely not considering the hidden costs required to maintain business continuity. Some examples of these costs include:

• The purchase of computer equipment, such as: servers, racks, UPS, physical storage, coolers, among others.

• The purchase of software licensing (database, operating systems, development tools, active directories, antivirus, firewall ).

• Expenses associated with human resources responsible for monitoring, maintaining, and managing the technological infrastructure, whether they be database administrators, technical support staff, or IT analysts.

However, when you compare the costs and infrastructure required for cloud-based vs. on-premise business management software , you come to the conclusion that the total cost of an on-premise solution turns out to be much higher than a Software as a Service (SaaS) scheme.

Cloud systems not only generate savings on equipment purchases and hiring specialized personnel, but also provide access to greater computing power at a much more predictable cost, as they are a fixed income .

Attractive, don't you think?

• “My information is more secure on my own servers”

Finally, another common myth that abounds in organizations (especially among IT directors ) is the feeling that company information will be more secure on servers that are maintained and managed by their own Systems or IT team.

However, it's important to remember that when you have an on-premises solution, the company is responsible for supporting the entire associated infrastructure.

In response, the IT department becomes responsible for designing the famous " Disaster Recovery Plans " (DRP) , implementing replication plans, creating user manuals and establishing the steps to follow in the event of various eventualities, such as earthquakes, fires, hacker attacks, etc.

On the contrary, when you implement a cloud ERP, that responsibility falls on the provider who manages it. And, as we've mentioned, these providers are typically large corporations that invest exorbitant amounts in infrastructure, maintenance, and security.

In addition, they are regulated and certified to the highest standards of computer security worldwide, and have rigorous disaster prevention and recovery processes in place.

So you shouldn't worry about this issue; the business of large cloud ERP system providers depends largely on the security of your data and the availability of the service they offer.

Acquiring a cloud solution undoubtedly offers many benefits. However, to ensure your system is a stable and secure platform capable of supporting business operations and growth, the help of a strategic partner who fully understands all of your company's needs is essential.

At Tekiio , we've been helping our clients digitize their processes for over 18 years, implementing industry-leading practices. Contact us ! And ensure a cutting-edge system with the strategic implementation of the market-leading cloud ERP: Oracle NetSuite.