Cloud ERP deployment is on the rise. With a growth forecast of 40% of overall ERP market share by 2020 (Allied Market Research), distributors are making tough choices regarding Cloud versus On-Premise ERP software deployment. Looking past the obvious benefits like accessibility and scalability, the ultimate decision for many distributors selecting comprehensive ERP software comes down to the basic question of ROI (Return on Investment).
One of the biggest differences between Cloud ERP and On-Premise deployment involves upfront investment. Compared to On-Premise deployment, Cloud ERP provides the fastest path to implementation while avoiding the need to fund additional physical on-site servers and in-house IT support teams. A recent report by Nucleus Research found that Cloud ERP customers experience 43% faster ROI with ERP and 50% less spent on personnel.
Why? Because the primary responsibilities of keeping the servers running, software updated, and data secure are handled by the Cloud vendor and not the individual distributor. By implementing Cloud ERP, distributors have the benefit of paying a fixed monthly management subscription instead of the large upfront capital outlay required with On-Premise deployment. These savings allow companies to allocate funds toward other key company initiatives like acquisitional expansion, growing the workforce, or any of the other hundred items on the budgetary wishlist.