A new report from the Aberdeen group analyses and reviews the benefits of using a cloud-based ERP and reveals how several businesses are gaining advantages from their decision to move to a cloud based ERP strategy. Nick Castellina, Aberdeen’s senior research analyst, cites “business transformation” as the main driving factor in moving to cloud based ERP solutions. Other benefits of moving to the cloud include greater scalability of the business and underlying processes, as well as the ability to experiment with innovative business models and changes due to flexible software options.
Lower initial investments of both time and money, as well as more accurate overall implementation budgets appear to be large attractions for businesses that turn to ERP based cloud solutions. According to Aberdeen, businesses with cloud ERP stayed within their project budgets as compared to the 12 percent that went over budget when installing ERP with an on-premise solutions. In the report, Castellina says companies deployed with cloud ERP were more likely to go beyond their initial return on investment targets, with such companies achieving ROI within 24 months versus 31 months for standard, on premise ERP implementations.
Some of the important reasons for considering SaaS ERP solution include no large capital expenditures and a lessened impact on IT. But selecting an ERP system is about more than just cost savings. For growing organizations or organizations that want to use it in a multi-tiered ERP strategy as they start or acquire new business units,, SaaS ERP is a compelling option.