Cloud ERP has gained favour over the past several years at the expense of the traditional on premise deployment models. This is particularly true for midmarket companies where cloud solutions can provide significant benefits due to their low cost, scalability, flexibility and ease of use.
Research firm Aberdeen Group says midmarket organisations with cloud solutions saw 1,9x the improvement in profitability over the past two years that those with on-premise solutions saw.
Today’s cloud offerings can help monitor, track and evaluate core business processes in real-time and helps executives make informed strategic decisions at the moment when it counts. In order to achieve true agility, emerging businesses need affordable business solutions that will empower them to unlock their potential and drive growth.
As businesses grow, they reach a point where managing the business becomes too complex for management to handle on their own. Whether there are operational functions that need to be streamlined or a need to manage the business holistically, the right technology can help them grow.
Cloud business solutions have the ability to link work processes in real time across all business functions in an organisation – from sales and marketing, to finance, logistics and inventory, even human resources and any other department, to streamline business operations and perform more efficiently.
One Channel CEO Bernard Ford says for this reason, midmarket companies are more likely to have a cloud ERP solution. “But ERP is a broad solution; it is really all about introducing technology that can help your organisation to improve.
“True agility and the ability to respond quickly to changing market demands are crucial in keeping tabs on competition, sustaining profits and growing the business. This is the true power of a cloud-based ERP system,” he explains.
Ford says not only must management identify which type of software they need, but they must ensure that the software is affordable, easy to use, flexible, and able to support the business as time goes on. “Acumatica is the perfect example, it is built on the world’s best cloud and mobile technology and has a unique customer-centric licensing model.”
Midmarket companies are more likely than larger organisations to be willing to implement their next solution in the cloud. The main reason for this is cost. Notably, the software cost of a cloud solution is typically lower than an on-premise solution.
In addition, since maintenance, hosting and support are handled by the software vendor, organisations do not have to dedicate IT resources to managing the solution.
This is particularly attractive to midmarket companies that may lack IT resources and may prefer to spend that capital on more pressing needs for business growth. But for midmarket companies, selecting a cloud solution is about more than just cost.
“The number two reason that midmarket companies choose a cloud solution is because of the ability to scale the solution as the organisation grows,” he concludes.