There are multiple benefits of Cloud-based software
Benefits of Cloud-based Software
There are multiple benefits of Cloud-based software and systems which are inherently more efficient and cost-effective than stand-alone on-premise deployments. With a Cloud-based system, both the hardware and software are cheaper, able to be utilized more efficiently, able to be more cost-effectively deployed, managed, upgraded and replaced in a Cloud-based system. Also the services needed to monitor, correct and manage security of the system are much more effective and cheaper at scale in a Cloud model. For the user, the main benefits of Cloud-based software are:
- Ease of use leads to better productivity
- IT simplicity reduces cost and headaches
- SaaS pricing frees up investment capital
- Cloud is more cost-effective on a TCO (Total Cost of Ownership) basis
- Use only what you need
- Cloud is more secure
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1. Ease of Use
The anytime, anywhere, any device nature of Cloud-based software makes it more convenient and drives productivity for remote and mobile workers. Employees can complete tasks even after close-of-business, and business owners and managers benefit from the increased productivity.
In addition, workers tend to be happier with Cloud-based software. Compared to legacy systems, Cloud solutions are easier to learn and more intuitive. That happiness reduces user frustration and boosts job satisfaction, which, yes ... in turn makes workers more productive.
Cloud software can also help you attract and retain talent. Millennials who are now entering the workforce have never used anything other than Cloud software their whole lives ….
2. IT Simplicity
Cloud-based software systems require far less investment in IT support. With Cloud solutions, all the complex tasks associated with network configuration, compatibility, and both hardware and software management are handled for you.
No more need for your IT department to:
- Spec out purchases of new hardware
- Deal with hardware upgrades, operating system upgrades, application updates or data backups
- Use complex VPNs to tie together multiple locations and printers at each location
- Manage the ever-increasing complexity of maintaining all the components of an on-premise network
- Schedule and manage IT specialists who have to work with specific hardware or software vendors to solve problems
- Deal with blame-shifting between hardware vendors, operating system upgrade, and application vendors
- Fight an all-out, no-holds barred, all the time security battle with hackers, phishers, etc ... more below
3. Software as a Service Pricing
Cloud solutions eliminate the upfront cost of purchasing software and the hardware. SaaS pricing frees up capital that you can instead invest in your business rather than in hardware and software. You can spend your capital on marketing or advertising or trucks or inventory rather than in servers that will be obsolete in 3-5 years…
Your budgeting process is simplified because you have a predictable, all-in annual software fee. You don’t have to plan for the ever-shortening upgrade cycles for hardware and the associated compatibility issues and software upgrades that add considerable cost and headaches. And, you won’t have big unanticipated costs if your server or network goes down.
With Cloud ERP, you can easily scale up your users and computer resources or scale down to respond to changes in your business.
4. Cloud Solutions are More Cost Effective
Cloud providers such as AWS purchase servers at a massive scale which drives substantially lower costs.
AWS’ standardized web servers, virtualization, and on-demand resources lead to far greater Cloud server utilization than any on-premise server can ever hope to achieve - and this further lowers costs. Also, AWS’ data center and IT costs and security costs can be spread over a vast number of servers.
All this means that the costs of Cloud resources are lower than the TCO of on-premise systems. As Cloud providers (AWS, Azure, Google, Oracle, IBM) compete, these cost benefits get passed on to you.
5. Pay Only For What You Need
A central feature of Cloud-based systems is that you pay only for what you need. If you are a growing company, you don’t have to anticipate your hardware and software needs 5 years out and pay for them now – and risk being wrong or the hardware you purchased being obsolete when you need it. If you only need part of a small server, the virtualization that a Cloud provider uses means you can be provisioned only for – and pay only for - the fraction of the server you need. As you grow, your resources can be scaled up automatically.
6. Cloud Is More Secure
With endless Ransomware attacks, security has become a grave concern for most organizations. Running your distribution software on your own server in an environment you control, feels safer. But given all of today’s cybersecurity threats, unless you have a team of full-time security specialists on staff, on-premise software is significantly riskier than Cloud. Despite a vested interest in asserting the contrary, fully 64% of IT professionals polled say the Cloud is more secure than legacy systems (https://clutch.co/cloud/resources/security-trends-in-enterprise-cloud-computing). Contrast your IT specialist's ability to stay on top of ever-changing security attack-vectors and viruses with that of AWS's huge dedicated teams deploying state-of-the-art monitoring, intrusion prevention, threat detection, isolation and remediation systems - it's not even close.
The proof is that Cloud solutions are winning the most secure mandates.
- In 2014, the CIA and 16 other intelligence community agencies moved secret and top secret classified information to AWS
- Currently, AWS and other Cloud providers are bidding on the Pentagon’s $10B JEDI Cloud intended to hold top-secret nuclear technology
- In Financial Services, Forbes reports that close to 100% of financial instituations' server images and snapshots are deployed to the Cloud
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There are good reasons that cloud-based ERP software is rapidly replacing on-premise business software. Learn why experts predict that 5 years from now on premise systems will be obsolete.
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With the Cloud vs On-Premise software debate, we’re at the point where the scales clearly tip in favor of Cloud solutions. The trend towards Cloud solutions is gaining momentum and accelerating. Don’t put this off and forgo the productivity and financial benefits, cost saving of the Cloud and potentially incur catastrophic cybersecurity breaches.
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