Technology | 5 Min Read

Why are Cloud-Based ERP Systems Successful?

Posted By
Diana Vilic

Cloud-based is a term that refers to applications or services made available to users on-demand via the Internet from a cloud computing provider's servers. Companies typically utilize cloud-based computing as a way to increase their capacity, improve functionality, or add additional services without having to commit to potentially expensive infrastructure costs. Cloud ERP is a service that allows users to access Enterprise Resource Planning (ERP) software over the Internet. By using a cloud ERP system, data is shared through a channel. A cloud ERP is more accessible and mobile than a traditional ERP system. Companies are able to upload and access data in real-time from any device, allowing for open collaboration among departments. Additionally, a cloud ERP system can be combined with CRM and PRM systems. Doing so allows your company to share a central database and receive real-time reporting across multiple channels.

Cloud ERP vs. On-Premises ERP

On-premises ERP systems are typically chosen because of their attractive ability to customize functions. These systems rely on a company server and on-site IT support. With on-premises ERP systems, you only buy the core software platform once, but you incur additional costs to maintain and update your software and hardware, troubleshoot system issues, and keep your supporting infrastructure up-to-date. On-premises ERP systems also require additional antivirus software and around the clock back up support. Many companies find that maintaining an on-premises ERP requires an additional IT support position.

Cloud-based ERP is a system of enterprise resource planning software and tools that are hosted and managed offsite in the cloud by a vendor. The vendor is responsible for managing and maintaining the systems. Additionally, cloud ERP offers continuous and seamless software updates—already included in your single, recurring fee. 


Cloud ERP Benefits

Rapid updates and upgrades

The biggest perk of on-site ERP software is the customization factor. However, customizations are tied to current software deployment and can become difficult to re-implement with future versions. For this reason, two-thirds of businesses are running outdated versions of their ERP software. In contrast, a cloud-based ERP receives automatic updates. Your previously implemented customizations and integrations will be automatically carried forward when the software is updated without additional investment.


Cloud ERP is built to help you scale operations in your company. Using a cloud-based software allows your team and channel partners to access information globally. Channel partners can easily view, take orders, manage inventory, and generate reports from anywhere in the world. Without an ERP, departments would each rely on separate systems that report different revenue and expense numbers. As a result, it can be difficult for financial teams to generate accurate reports and end of year statements. In contrast, cloud ERP systems continuously monitors data and reports accurate information on various dashboards. Additionally, ERP software allows you to customize and add services and modules as you expand your business. 


On-premises ERP solutions require higher investment costs upfront to purchase and manage the software. Additionally, many companies discover they need to hire an IT team to support their system. In contrast, a cloud-based ERP system is already set up. To get started, you need to pay a recurring subscription fee, which includes hardware and software costs. Over time, this cost is generally lower than the cost associated with an on-premises software.


Industry Uses


  • Reduce Interruptions: An ERP is able to alert you of unexpected interruptions, such as equipment failures. Additionally, manufacturers are able to monitor equipment in real-time and perform predictive maintenance.
  • Supply Chain Management: Using an ERP allows manufacturers to streamline their workflows. Implementing an ERP helps to free up valuable resources and reduces the amount of money spent on production.
  • Data Visibility: A cloud-based ERP offers valuable insight on collected data, such as data analytics and customized dashboards.


  • Omnichannel Everywhere: A cloud-based ERP system allows associates to access the omnichannel easily. Traditional systems would require associates to call a help desk or utilize AS400 and backdoor systems. In contrast, a cloud-based ERP system offers complete transparency of inventory and cross-channel scenarios.
  • Analytics: ERP systems allow managers to leverage the data their store has collected. As a result of data analytics, stores are able to track customer buying patterns and sales breakdowns. By taking advantage of this information, they are able to improve their overall store performance.

Field Service

  • More First-Time Fixes: ERP systems are able to alert technicians on mobile devices and send accurate customer case information. In turn, allowing them to respond to requests and deliver a high rate of first-time fixes.
  • Remote Service: By combining an ERP system with artificial intelligence and augmented reality, field teams are able to administer repairs remotely. Technicians are able to use mobile devices to communicate and share screens with customers and guide them through repairs step-by-step.
  • Planning: Because ERP systems offer real-time tracking, field teams are able to engage in predictive maintenance, monitor equipment health, and predetermine their actions to mitigate potential damage.

Using a cloud-based system, such as NetSuite, allows your business to optimize pre-existing technology and workflows. An effective ERP system can help your business progress and leverage collected data. As your ERP Partner, ManoByte works with your team to ensure your ERP implementation is a victory.

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Topics: Technology