ERP SaaS: the arguments for moving to the cloud
By: Redacción https://revistabyte.es/
There are many products, services and knowledge that I prefer to pay by the hour or rent. So I can use them when I need them instead of having all that inventory of tools and skills ready. When I need an electrician, I rent one. When I need a plumber, I rent one. When I need someone to check my roof, I rent it. When I want a good book, I go to the local library and rent it.
Would you like to learn enough about household electrical wiring to be able to do it yourself? Would you like to learn how to solder copper pipes so that you can install your own water line? Do you think it is wise to spend the time and money to build and stock an entire library when borrowing is so convenient? I feel comfortable going to the “tool rental” establishment and renting a concrete mixer for 40 Euros a day instead of buying one for 1200 Euros. I also think it’s okay to rent a truck instead of buying it.
So why not “rent” the most up-to-date business software and take advantage of all the benefits that Software as a Service (SaaS) has to offer?
What is ERP SaaS and how does it work?
ERP SaaS is a cloud-based enterprise resource planning (ERP) system that runs on the ERP provider’s servers and is sold by subscription over the Internet.
Can the same logic of hiring an electrician, plumber, or roofer apply to support a cloud-based ERP? Of course. Instead of training your own technical staff to support hardware and the latest technology, you just have to borrow the expertise when you need it. The inner workings of modern systems and their support should be part of that cloud offering.
SaaS reduces the cost of keeping up with rapid changes in software, security, and technologies. Think of all the new technologies that we have seen in recent years; Data Lakes, RPA, Blockchain, Mobile Apps, Edge Computing, Additive Manufacturing, Augmented Reality, Robots / Cobots, Machine Learning, Digital Twins, Advanced Analytics, Low-Code / No-Code, IIoT, 5G, Cybersecurity – Have you got it? everything? Do you need them? How are you going to support them? What do your users need?
How much of your IT budget will you spend finding an expert in each area and getting (and keeping) their training? I work with a client who needs to find technical college graduates interested in working with COBOL and FORTRAN and train them to maintain their legacy systems. This is because those of us who used COBOL and FORTRAN in the past are retiring and no one is learning those systems anymore. The last time I used FORTRAN-77 was in 1980. Would you like to work in that department? I heard they are hiring.
Move to a cloud-based ERP model
Cloud-based ERP is similar to on-premises ERP, but there are key differentiators. On-site hosting requires you to get your own expertise for the technology you want to take advantage of. If you outsource the accommodation, you need a service that has the necessary talent. You’ll also have to think about country and industry compliance, and if your provider doesn’t offer that service, you’ll need that internal support as well.
The ERP SaaS is a cloud-based ERP that works on the servers of the ERP provider
An ERP solution hosted and managed in the cloud changes with technology, and can keep you on track without your budget incurring the costs of keeping your staff on track. Make sure that your choice of cloud ERP is always available, that your updates come with the new technology incorporated and that there is 24/7 support for both the technology and the applications that use it, with an uptime of more than 99 , 9% and 24/7 supervision.
What are some of the concerns manufacturers have about migrating to cloud applications? There are several, so let’s start with the following:
- Who is in control of my data?
- How secure will my system be against external cyberattacks?
- How am I going to connect my current local applications, such as MES, time and attendance, and IIoT devices?
With the cloud, your decision will only have to be: “What business-critical applications will I need to keep under local control?” As your cloud ERP provider manages maintenance, security and support so that your resources can focus on growing your business.
Your “tool rental” store may buy the great tools you need only once a year or so. The library will buy the new books; you can borrow them and bring them back. Your local plumber and electrician will have the tools and parts for that occasional job you need. Cloud-based SaaS ERP will keep up with fast-moving technology and keep your ERP on point 24 hours a day.
How adaptable is your company? Find out how to increase your ability to thrive in times of unprecedented change with QAD Adaptive ERP. Make the diagnosis of the Adaptive Manufacturing Company maturity model that consists of 12 questions to obtain more information.