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July 12, 2013 Finance

ERP in the Cloud: Why Companies are Abandoning Old School Accounting Software for Cloud ERP

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By Sonja Fridell

Cloud is changing the way small and medium-sized companies do business. But what is cloud and what does it mean for ERP?

The Innovation Cycle

Business process automation has evolved with the invention of new disruptive technologies. Companies that harness the power of new technology are able to gain an advantage over competitors. The key is knowing when to adopt – too soon and you will spend more time on technology than your business – too late and you will be at a competitive disadvantage.

Innovation and ERP

ERP has evolved from the days of clunky user interface, to the early days of SaaS, to the promise of Cloud ERP software. Key technological improvements driving ERP change include moving from DOS to Windows, maturation of web technology, internet ubiquity, server virtualization, and the proliferation of mobile devices. These technologies have shaped new software that allows employees to work anywhere, on any device with a browser.

New Business Models

Cloud technology has also created new business models, such as software as a service (SaaS) for purchasing and delivering software. Businesses need to know the right questions to ask before going cloud. How easy is it to customize? What is vendor lock-in? Are there deployment options? Data accessibility and security?

With the right software vendor, businesses gain advanced technology with a flexible pricing model that allows them to grow and shrink as needed.


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