Cloud ERP

The ins and outs of Cloud ERP software

What is cloud ERP?

Cloud ERP is an enterprise resource planning software (ERP) system that operates on a cloud platform. The cloud refers to servers that are accessed over the Internet and the software and databases that run on those servers. This means that a Cloud ERP software can be accessed over an internet connection

Enterprise Resource Planning (ERP) refers to a business process management software that optimizes the processes of an organization by providing a system of integrated and centralized applications that help manage and automate a wide range of business operations including accounting, human resources, customer relationship management (CRM), procurement, sales, inventory management and supply chain management. Some examples of cloud ERP software solutions include Oracle cloud erp solution, NetSuite, Microsoft Dynamics and the Odoo Cloud ERP solution.

Enterprise Resource Planning software has come a long way. now. In the past, "ERP" was a term that focused more so on manufacturing software. Now ERP software covers a wide range of needs and for all intents and purposes should be considered a global business management software. ERP software stands out in its ability to tie multiple business processes together and promote the flow of data between them.

An ERP serves as one singular source for all a company’s data that can be accessed anywhere and anytime. Cloud based ERP and ERP technology combined provides a powerful solution for businesses looking to scale and improve productivity. Cloud ERP software solutions are driving the future of business.

Discover our guide to choose what is the best solution for your company between Cloud ERP and SaaS ERP

How Does Cloud ERP Work?

Cloud ERP systems are comprised of a combination of technologies such as the internet of things and artificial intelligence connected over high-speed internet networks. With a cloud ERP system, downtime security and updates become a hands-off matter and will typically be handled by the ERP vendor you choose. Cloud ERP costs can be much lower when compared to an ERP being hosted on-premises. A Cloud based ERP solution is often offered as a Software as a Service (SaaS)

Because Cloud ERP is hosted online, it can be accessed over various devices and not just a desktop computer. Think smartphones, laptops, tablets and more. Because cloud ERP integrates all areas of business, your departments can collaborate seamlessly on one software.

Cloud ERP Requirements

Cloud ERP does not require any onsite infrastructure outside of an internet network connection, making it very easy to add or remove applications, resources, or users at any time. On a cloud based ERP system, new users can access the system with newly created login credentials and access the system.

Ultimately, Cloud ERP systems have a low barrier to entry and are very well suited for small to medium-sized businesses as the level of up-front investment is significantly smaller when compared to traditional or on-premise ERP setups.


Cloud ERP Challenges

Some challenges can potentially come with a cloud-based ERP system. Many of them are related to migration. For companies coming from an on-premise legacy system, the transition to a cloud ERP system can be overwhelming. Transferring the responsibility of aspects such as maintenance, infrastructure and updates to an ERP software provider can come with a loss sense of autonomy.

For companies with extremely confidential information, it may make more sense to host their ERP database on-premises to ensure industry-specific regulatory compliance and data security measures. For other companies that do not fit into these categories, there are many advantages of a cloud ERP system.

Key Features and Benefits of a Cloud-ERP system

An ERP system has several key-feature and benefits. A centralized hub for all company data means that everything is well connected under one platform. No more needing to jump to several different software and reenter data. On an ERP system data across all departments are accessible to your employees and customers for greater reporting and business intelligence. Cloud ERP takes all the typical ERP software benefits even further. Companies save up to 30% more with cloud ERP.

Discover our TOP 10 best ERP for Small Business in 2023


All the benefits of an ERP software without all the on-premise hosting costs. Implementation can get expensive, this is especially the case with on-premise deployments. In an on-premises ERP integration, businesses have to account for the costs of purchasing physical servers, creation of the database, initial implementation, consultants, IT staffing, security, backup and ongoing operating costs.

Updates and Upgrades

The update and upgrade path for cloud ERP systems is much more streamlined. Within hours your existing cloud-ERP can be serviced and updated remotely by your ERP vendor. With an on-premises erp deployment, this can take significantly longer and be much more costly.


Cloud ERP software is available anywhere and everywhere there is an internet connection. This means a Cloud ERP can be accessed from various devices such as a smartphone, tablet or laptop. This means that teams in a remote environment can have access to all the same essential information. In other cases, this also makes it easy for customers and vendors to access relevant company information as well. This facilitates communication, collaboration and productivity.

Scalability and Security

Compared to on-premise, Cloud ERP can grow without the need for added hardware or infrastructure. This makes the process of scaling a business far easier. Cloud ERP vendors offer a level of server security and compliance that would be quite expensive if there were to opt for an on-premise solution. They have ample infrastructure, security and network capabilities to provide enterprise-grade security and benefits at an affordable price.


With access to staging branches, easy module additions, and source code access customization are not as much of a hassle as they may be with an on-premises hosted ERP solution. Updates and downtime can deter companies from wanting to do customization altogether.


A company’s productivity is higher on a cloud-based ERP system simply because all of the company’s data can be accessed on a singular platform by all company employees.

When to go cloud ERP?

You may be wondering by now if your organization would benefit from ERP Cloud Services? Based on the current standing of your company, switching over to a cloud ERP system could bring several benefits when compared to an On-Premises solution ERP cloud could be a better ERP system.

  • Is your company working in a hybrid or remote environment?
  • Does your business still have a lot of manual processes and uses physical documents?
  • Is your business coming to a period of new growth?
  • Would On-premise deployment be too expensive?

Any one of these reasons could justify the purchase of a new cloud-ERP system. All of the benefits and affordability of a cloud-ERP system make it quite a worthwhile investment.

Our Cloud ERP Recommendation

Odoo is an open-source enterprise resource planning (ERP) software that can be adapted and deployed for any type of business.

With its CRM and ERP functionalities as well as functionalities related to website creation, e-commerce, marketing, HR management and project management, Odoo can meet all needs to increase a company's profitability. Many businesses are attracted to the fact that Odoo is a cloud-based ERP software. There are many Cloud erp solutions on the market, but very few are as flexible as Odoo.

Compared to other cloud erp vendors, Odoo has a lively developer community that continues to grow and shape the constant improvement of the cloud based ERP software.

Try Odoo now

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