The Shift to Cloud-Based Distribution Software
Over the past decade, technology has rapidly evolved, and cloud-based distribution software has become the new standard for modern distributors. However, many small and mid-sized distribution companies are still relying on outdated, on-premises systems that limit growth and efficiency.
The shift of software to the cloud generally is now very well established with all major software publishers moving their software products to the cloud. Given the flexibility and stress-free features of cloud solutions, they are particularly attractive to those without large-scale IT departments. Cloud-based distribution software takes advantage of this.
Specifically, cloud-based distribution software is built to run in public cloud platforms (like Amazon Web Services), eliminating the need to maintain any hardware or infrastructure, and scaling up or down is simple. Cloud-based distribution software allows employees to process orders and serve customers at any time, working from anywhere, using any device. The uptime availability and reliability of public cloud vendors is substantially better than on-premises servers, and you automatically get data back ups, redundacy and disaster recovery.
The Problem with Legacy Systems' Hardware
Traditional on-premises distribution systems require businesses to purchase and maintain their own servers. These legacy systems have the problem that the servers and infrastructure age and have to be regularly updated. How long does a server last? The average server life is approximately 4-6 years, and replacing a server can be both expensive and disruptive. In addition to hardware costs, businesses must also account for:
- Maintenance and support
- Downtime risks
- IT staffing requirements
- Backup and disaster recovery
For many distributors, this ongoing burden slows innovation and drains resources. Also, many distributors don’t realize that server costs comprise much more than just the hardware cost – see Dell's guide: Evaluating the useful life of a server.
The Problem with Legacy Systems' Software
It’s not just hardware that becomes obsolete—software does too. Legacy distribution software:
- Receives limited or no updates
- Lacks modern features and integrations
- Becomes increasingly expensive to maintain
- Can create operational inefficiencies
Waiting too long to upgrade can lead to costly disruptions and difficult transitions - think of upgrading from Windows 7 to Windows 11, for example.
The Solution: Cloud-Based Distribution Software
The world is moving to cloud-based distribution software for many basic reasons. Many ERP software publishers like Oracle, SAP, Microsoft, to name a few of the major players have transitioned their legacy offerings to cloud-based solutions. Cloud-based distribution software eliminates the need for on-site servers and infrastructure. Instead, it runs on secure, scalable platforms such as:
- Amazon Web Services (AWS)
- Microsoft Azure
- Google Cloud
This means:
- No hardware to maintain
- Automatic scalability
- Access from anywhere with an internet connection
- Industry-leading uptime (often better than 99.99%)
In addition, unlike traditional systems, cloud-based distribution software is continuously updated. This has several key benefits:
- Automatic software updates delivered regularly, sometimes as frequently as every 2 weeks
- No need for manual upgrades
- No need for testing upgrades
- Immediate access to new features
- No compatability issues from old (not updated) versions
- Reduced IT workload
This ensures your business always operates on the latest technology without costly upgrade cycles.
Cloud-Based Software is more Secure
One of the most common concerns about cloud-based distribution software is data security. In reality, coud solutions are more secure tahn on-premise systems. The leading cloud providers offer:
- Advanced encryption
- Continuous monitoring
- Redundant backups
- Highly secure data centers
These providers specialize in security and infrastructure, often delivering a level of protection far beyond what most small and mid-sized businesses can achieve on their own.
Cloud-Based Distribution Software Delivers Seamless Integrations Across Your Business
Modern cloud-based software easily integrates with other cloud applications, including:
- eCommerce platforms (Shopify, Magento, Amazon)
- CRM systems
- Shipping and logistics providers
- Payment processing solutions
- Sales tax automation tools
These integrations create a unified ecosystem where data flows seamlessly across your entire operation, improving efficiency and decision-making.
Choosing True Cloud-Based Distribution Software
Not all solutions labeled “cloud-based” are truly modern.
Some legacy providers simply host outdated software on remote servers. To avoid this, look for solutions that are:
- Built on modern web architecture
- Fully cloud-native (not retrofitted)
- Scalable and flexible
- Designed for continuous updates
- Equipped with advanced distribution features
Choosing the right platform ensures long-term value and avoids repeating the cycle of obsolescence.
Key Features to Look For
When evaluating cloud-based distribution software, prioritize features such as:
- Advanced inventory management
- Order management and fulfillment
- Multi-channel eCommerce integration
- Lot tracking and traceability
- Catch weight support (if applicable)
- Flexible pricing and customer management
These capabilities are essential for running a modern, efficient distribution business.
Conclusion
Cloud-based distribution software is no longer optional—it is essential for staying competitive in today’s fast-moving market. By moving to the cloud, distributors can:
- Reduce IT costs
- Improve operational efficiency
- Enhance scalability
- Gain real-time visibility
- Stay continuously up to date
The transition to cloud technology is accelerating across all industries. Distributors who embrace cloud-based distribution software today will be better positioned for growth, resilience, and long-term success.
With cloud-based distribution software, your team can process orders, manage inventory, and serve customers from any location. Contact us to lear about Accolent ERP, a true cloud-based distribution software solution that that runs end-to-end in AWS, the leading Cloud platform.
Frequently Asked Question (FAQs)
What is cloud-based distribution software?
Cloud-based distribution software is an ERP system hosted on cloud infrastructure that helps distributors manage inventory, orders, purchasing, and operations without needing on-premises servers.
How is cloud-based distribution software different from on-premises systems?
Unlike on-premises systems, cloud-based distribution software does not require local servers or manual upgrades. It offers remote access, automatic updates, and lower IT maintenance costs.
What are the benefits of cloud-based distribution software?
Key benefits include scalability, real-time data access, automatic updates, reduced IT costs, improved security, and seamless integration with other business systems.
Is cloud-based distribution software secure?
Yes, cloud-based solutions use advanced encryption, continuous monitoring, redundant backups, and secure data centers, often providing stronger security than traditional on-premises systems.
Can cloud-based distribution software integrate with other tools?
Yes, it integrates easily with eCommerce platforms, CRM systems, shipping providers, payment processors, and tax automation tools, creating a fully connected business ecosystem.
How often is cloud-based distribution software updated?
Cloud-based systems are updated automatically, often every few weeks, ensuring users always have access to the latest features without manual upgrades.
What features should I look for in cloud-based distribution software?
Look for features such as inventory management, order processing, warehouse management, eCommerce integration, lot tracking, and flexible pricing tools.
Why are distributors moving to cloud-based distribution software?
Distributors are adopting cloud solutions to reduce infrastructure costs, improve flexibility, enable remote work, and stay competitive with modern, scalable technology.