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These days everything seems to be deployed ‘from the Cloud’ or ‘in the Cloud.’ What exactly does this all mean? Do I need a cloud-based ERP solution?
Today, we are in a technological phase where servers are interchangeable, and servers linked together can provide vast amounts of computing power. Large data centers filled with servers can be made available to ‘host’ large systems – which means the systems are running on these servers, and users ‘rent’ the capacity of the servers. Because of basic economies of scale, the cost per user for renting space is relatively low, and since it is rented, there is no cost of purchasing the server, setting it up, and programming it.
Cloud-Based ERP Solutions
The other major efficiency from Cloud systems is the concept of ‘multi tenant’, meaning that one system has multiple companies in the same database. They are separated by the security software, so one system does ‘see’ the others, but they share the server’s database and processing power. Managing how many systems are one server and how power requirements are handled is up to the Cloud service provider, but this allows the cost of hosting to be spread across more customers.
Larger companies may be too big for ‘multi-tenant’ systems and can be ‘dedicated hosted,’ which means the server is only used by a single customer. More sophisticated customers also like this because they can have complete access to the ‘root directory’ and manage the server themselves. Multi-tenant systems don’t allow the customers this access. Also, in dedicated hosted systems, the customer can utilize all of the ‘extended properties’ of the database, including making new tables and fields.
Buyers of Cloud ERP systems need to have access to the internet and most likely, a fast connection to run their system. If they are located in an area with poor internet connectivity, Cloud offerings would not be practical.
Contact EpiCenter Today to Learn More About Our Cloud-Based ERP Services
There are pros and cons to adopting a Cloud ERP system, and it’s also essential to keep your options open. We represent Epicor Kinetic, which can be deployed either Cloud or on-premise, and your data can be exported from the Cloud into an on-premise system as your company grows or changes its needs. This is a crucial differentiator for an ERP selection. To continue your understanding of Cloud versus on-premise, please contact us today, and we will be happy to work with you on understanding this dynamic field.