Is a Cloud ERP the Right Choice for a Small Business?


Laura Schomaker, Marketing Associate

June 1, 2018

The business technology industry is making a big push towards Cloud-based solutions. It makes sense to think that mass-market solutions are usually meant to benefit enterprise; after all, they represent billions of dollars for software developers. Do they have small business in mind at all when they recommend moving to a Cloud ERP or are they just pushing their solution?

Being successful as a small to midsized business means knowing where to seize competitive advantages. Traditionally, this meant offering better pricing, convenient locations, a better product, or knowing how to exploit marketing tactics. In today’s business world, however, it’s unlikely that an SMB will be able to offer better prices than its largest competitor. So where does a small company find its competitive advantages? Cloud technology may be the answer to that question.

Competitive Advantages in the Creative Use of Cloud Technology

Startups and small to midsized businesses need to pull their weight and face their challenges through other means than just throwing money at them. When capital is limited, a company will be hesitant to spend it; this is when investments need to be smart, rather than large. Business technology is the best area of opportunity for small companies to earn competitive advantages. Creatively applying technology to streamline business processes, improve staff mobility, and reduce support and maintenance costs is where SMB’s and startups can use their assets in their favor.

Recent market studies on the use of cloud technology have uncovered some interesting links between use of technology and revenue. Companies that creatively use technology strategies are 18% more likely to forecast increased revenue than companies sticking to traditional tactics. Apart from that, applications built on Cloud technology deliver 2.1 times the ROI on average of their on-premises counterparts.

Cloud ERP Makes Financial Sense

Using a Cloud ERP offers small to midsized businesses the investment versatility and operational improvements they need. Firstly, with a Cloud technology infrastructure, hardware and server costs are avoided. IT maintenance support costs are also greatly reduced since the cloud provider handles upgrading and updating applications. In some cases, like Acumatica Cloud ERP, license costs are based on usage and don’t require upfront payment for access to the software. The implementation and consulting costs associated with cloud systems is a whopping 63% lower than on-premise software, and support personnel costs are 55% lower on average, according to whitepaper by Nucleus Research. But using a cloud ERP doesn’t only make financial sense because it reduces tech costs; the operational benefits of Cloud ERP will help your company generate more revenue.

Cloud ERP Makes Operational Sense

Cloud ERP systems are armed with business intelligence analytics tools that manage data in real time and offer SMB’s game-changing insights. This gives business leaders the information they need to make important decisions in less time, with increased clarity.

Cloud ERP also helps your staff become more productive through improved mobility. Since software is cloud-based, team members have access to their platform from wherever Internet access is available. For field agents, this means they can enter and request information from their ERP from wherever they are, without having to come back to the office. The mobility of a cloud ERP also means that employees can work from home if their physical presence isn’t required or if they are unable to get to the office. Thus, reducing work absences, increasing employee satisfaction, and boosting productivity.

Cloud ERP Just Makes Sense

In summary, using a Cloud ERP is a very sound choice for startups and small-to-midsized businesses. Cloud ERP represents reduced IT costs in acquisition, implementation, and maintenance. It also represents increased mobility, productivity, and operational functionality. Finally, Cloud ERP also represents a rapid ROI for companies that need a quick win.


Learn more about the benefits of Cloud ERP here. You can also follow us on Twitter and  LinkedIn for news and information on Cloud technology!


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