9 Most Compelling Reasons to Upgrade Your ERP to the Cloud

By Bill Durham
Discover the top 9 reasons to move your ERP to the cloud and how it can improve organizational profitability and flexibility
Cloud computing technology concept – 3D Image

If you’re like most manufacturers, you’re weighing the benefits and drawbacks of upgrade your ERP system to the cloud. It can be challenging, but the benefits often outweigh the risks.

To get you started, here are some cloud adoption statistics to consider:

  • 94% of businesses use Cloud services.
  • Cloud computing now accounts for 67% of enterprise infrastructure.
  • 92% of businesses have or are planning a multi-cloud strategy.
  • As of 2022, the global cloud computing industry was worth $480.04 billion.

In addition, according to Gartner, spending on enterprise cloud platforms will increase by 14% in 2024.

9 Most Compelling Reasons to Upgrade Your ERP to the Cloud.

The figures speak for themselves.

Read on to learn about the 9 most compelling reasons to upgrade your ERP to the cloud.

#1 Cost Savings

Lowering costs is one of the primary reasons to migrate your ERP to the cloud. Regarding on-premise ERP, you must consider the costs of hardware, software, licenses, and maintenance. These costs can add up over time, eating into your bottom line, but a cloud-based ERP can reduce or eliminate them. Even when maintenance and support costs (typically 20% after license costs) are included, subscription costs can still be lower.

#2 Maintenance and Upgrades

Upgrades and maintenance are other reasons to consider moving your ERP to the cloud. The subscription cost for cloud-based ERP includes upgrades. You must schedule and pay for regular updates and maintenance windows with on-premise ERP.

These can disrupt your operations and consume valuable time from your IT staff. The provider maintains the database, servers, and other infrastructure. All updates and patches are automatically pushed out to all customers, ensuring their software is secure and compliant with all rules and regulations. The use of a single vendor to handle all issues improves accountability.

Furthermore, because cloud ERP services are subscription-based, they typically provide 24/7 support to address issues as they arise. Because their business depends on their service’s availability, businesses can naturally achieve better uptime and security with cloud ERP providers than with in-house IT personnel.

Because of the lower complexity and less need for customization, cloud-based ERP systems typically have shorter implementation times than on-premises systems. Cloud providers also provide various transition services, such as data migration, user training, and change management.

#3 Data in Real-Time

Cloud ERP provides better real-time data than older on-premise systems. Data is typically updated in batches overnight with an on-premises system. However, cloud ERP allows users to access the most up-to-date information. That is because changes happen in the cloud, then distributed to users in real-time. It reduces the possibility of incorrect data when creating reports and forecasts and aids in the removal of bottlenecks at numerous software integration points.

#4 New Technology Access

Access to new technology is another reason to move your ERP to the cloud, in addition to lower costs and easier maintenance. You must wait for a significant release to get new features or functionality in on-premise ERP releases. With cloud-based ERP, new features are released as they become available, allowing you to take advantage of them as soon as they become available. That can benefit manufacturers who want to stay abreast of the competition and use the latest and greatest ERP technology.

Security is always a top priority for businesses, but it’s especially critical regarding ERP systems. Your ERP system most likely contains sensitive data, from customer information to financial records. You are responsible for ensuring data security with an on-premise ERP. It can be a daunting task, particularly for small and medium-sized businesses without the resources of larger corporations.

When you move your ERP to the cloud, you can take advantage of the security measures provided by the provider. Cloud providers use various methods to keep data secure, including firewalls, intrusion detection, encryption, and physical security. They also have a security team that constantly monitors their systems for threats, providing peace of mind, knowing that your data is in capable hands.

#5 Compliance

Compliance is another advantage of cloud-based ERP. Manually updating on-premises ERP systems to comply with regulations is a common and time-consuming task for companies in finance, healthcare, defense, and other highly regulated industries. Among the provisions that cloud ERP vendors are proactive about complying with at the state, federal, and international levels are HIPPA, GDPR, and GAAP. Cloud ERP software incorporates and automatically updates these and other regulations to ensure compliance. Many cloud ERP systems include localization functionality that allows businesses to switch between different countries’ regulations to facilitate compliance across global operations.

#6 Accessibility

Another advantage of moving your ERP to the cloud is increased accessibility. Cloud ERP systems can be accessed from any device with an internet connection and a browser, allowing for data collaboration from anywhere. That’s a significant advantage for businesses with employees who work remotely or travel frequently. A cloud ERP also enables key decision-makers to stay connected while traveling or outside regular business hours. It also provides businesses with a larger talent pool because it is easier to hire remote workers.

#7 Scalability

Another significant benefit of cloud ERP is scalability. With an on-premises system, you must forecast your future needs and capacity requirements and make a significant upfront investment in hardware and software that might be unnecessary for several years. Cloud ERP systems are far more adaptable and can be easily scaled up or down, allowing the ERP to grow alongside the business. Furthermore, remote configurations mean cloud ERP is less expensive to implement across multiple locations because hardware investments are minimal, and a team is not required at each site.

#8 Disaster Relief

Another significant advantage of the cloud is disaster recovery. Although disaster prevention and recovery are essential components of an organization’s IT infrastructure, many businesses can be more careful, taking extremely high risks if their on-premises ERP is damaged or suffers data loss. It is critical to recover data and resume operations as soon as possible following a hardware failure, fire, flood, or theft. You are responsible for backing up data and keeping it safe in a disaster with an on-premises ERP system.

Cloud ERP providers prioritize data security and disaster recovery. They have multiple layers of security to prevent data loss. Their systems are built for high availability so businesses can continue operating even if one of the provider’s data centers experiences a problem. Furthermore, cloud providers typically have a team of experts who manage data backups and disaster recovery for businesses.

#9 Mind-Blowing Silence

ERP systems running on-premises reach end-of-life support when vendors stop providing software updates and patches and no longer accept technical support calls for these systems. Moving your ERP to the cloud gives you peace of mind because you will always have access to the latest software version with all the newest features, security patches, and support.


As you can see, there are numerous benefits to an ERP cloud migration. Lower costs, upgrades and maintenance, access to new technology, security, compliance, accessibility, scalability, and disaster recovery are all advantages of cloud ERP.

It also gives you peace of mind because you will always have access to the most recent software version with all the most recent features and support.

Ready to Learn More

If you’re considering moving your ERP system to the cloud, contact Basileia Consulting Group (BCG) by calling 949-329-3524 or via our contact form. Our expert team can evaluate your needs and requirements and recommend the best solution for your company.

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