It’s hard to imagine what we ever did as a data-driven society without the cloud as our platform for software such as Acumatica. While businesses of every size are still smoothly using on-premises software efficiently, there is no denying the advantages of the cloud.
There is a constant debate as to whether or not the benefits of the cloud are worth the investment for businesses, or if some corporations would be better served by an on-premises solution.
While skepticism is understandable, the fact is that benefits from using the cloud such as cost efficiency, storage space variety, and evident accessibility, really don’t have a catch. For companies that are considering making the switch to cloud ERP, we’d like to make our advice as clear as possible.
The short answer is: Switching to cloud is a no-brainer.
Two words that explain why: Energy efficiency.
Why Do You Care About Energy Efficiency?
Any business contemplating switching over to on-premises ERP software must fear that their always-on server would be at risk for higher energy consumption than a cloud ERP. Plus, in order to run at peak efficiency, which already takes more energy, servers need to be air-cooled. With rising energy costs, these savings are not a concern you want to take lightly.
In fact, according to Derrick Wlodarz, an IT specialist and the owner of FireLogic IT consulting company, who quotes Teena Hammond of ZDNet,
“According to her numbers, which use an average kWh cost for energy from the US Energy Information Administration as of January 2013, [Teena] figures that an average in-house server in the USA (accounting for both direct IT power and cooling) sucks up about $731.94 per year in electricity.”
Cloud ERP providers, such as Acumatica, take care of their servers’ staggering energy consumption, which means that even if energy rates spike, your costs don’t.
It’s Not Just about Energy Consumption: Total Cost of Ownership (TCO)
We’ve talked about energy efficiency, but what about the TCO of a cloud-based solution? The best thing about SaaS isn’t its accessibility, and it isn’t its flexibility. It’s the reliability.
“The cost savings of SaaS are real, and you need to look beyond hardware and licenses’ cost to truly understand the benefits of SaaS solutions. Redundant data and application servers, as well as automated backup and recovery mechanisms help you ensure your systems are working no matter what disaster strikes. SaaS and cloud-based solutions enable you to focus more on your core business, and not worry about managing IT infrastructure.”
-Gabriel Michaud, Director of Product Management, Acumatica
Derrick Wlodarz also brings up the issue of reliability.
“…compared to on-premise[s] systems, on the average, the public and private clouds still see much better reliability and uptime.”
–Derrick Wlodarz, “Comparing cloud vs on-premise? Six hidden costs people always forget about”, Betanews.com
Let’s Not Forget SaaS…
Cloud xRP is the name Acumatica has chosen for their SaaS platform, but it’s not just a brand. Acumatica takes the acronym “SaaS” (Software as a Service) to heart, and makes their product extremely useful, no matter who your business serves. The secret to the success of this cloud-based platform is what most people may not realize: Cloud xRP is directly linked with ERP and CRM applications, meaning that your whole business is taken care of–all under one cost-efficient umbrella.
Intersecting Functionalities
Both the Cloud xRP model of the SaaS platform and the already embedded foundation of the ERP and CRM have solidified a dual role of power. The ability to connect your front-office, back-office, operations, warehousing, and customers all within a single always-available, fully secure ERP is the obvious choice for companies who seek continued business success.
To Sum Up
An investment in the cloud will prove to increase your business’:
- Speed
- Precision
- Availability
- Flexibility
To Conclude
Not only does the cloud provide advantageous solutions, but when incorporated into software, it can heighten the potential of data in an organizational structure. Of course, there’s a fear of the unfamiliar with any new product or service. However, the cloud is not just a new toy. The cloud is a way of living in a society that needs access to everything at any given moment. With competition being fiercer than ever in a rocky market, business owners need to be wise in their investments no matter the size of the company. Connect your customers with your business when you connect your business with the cloud.
Image licensed by Torkild Retvedt