5 Lesser-Known Ways Cloud ERP Helps You Save Operational Costs

Your Enterprise Resource Planning (ERP) system is the vehicle that integrates all your business processes across your organization. When CIOs first selected their ERP platforms, t hey saw immediate impact. But that implementation happened many decades ago, and ERP has since evolved. More specifically, cloud-based ERPs look like the way to go. Moving your on-premise ERP systems to the cloud not only makes it more accessible and secure, but it can be a cost-saving solution if you plan it out well. IT Specialist and SAP expert Brad Rudisail shares an informative article on Spiceworks.com of several ways having  a Cloud-based ERP can not only help your business run smoother, but can also cut operational costs significantly.

1. Best Cost-Saving Practices. “Best practice translates into best cost efficiency. If you maintain your automobile according to the manufacturer’s best practices, you can, on average, extend the car’s life, save money through optimal fuel efficiency, and enjoy better driving performance. It is no different with your business because following best practices means business tasks and operations are accomplished more efficiently using fewer resources. It also provides other benefits that lead to added cost savings. A cloud ERP solution, such as SAP S/4HANA Cloud, can ensure that your organization has the ready-to-go, preconfigured processes it needs to better perform on day one.”
2. Energy and Space Savings. “Companies are increasingly adopting sustainability and green initiatives driven by ethical, economic, regulatory, and reputational motivations. Opting for a cloud ERP solution not only negates the need for hefty hardware investments and their upkeep but also eliminates cooling requirements. This shift can lead to significant reductions in energy costs. The space previously used for servers can be reallocated for other revenue-generating activities or reduced.”
3. Grow Without Limits. “A cloud ERP solution provides the scalability that businesses need to quickly adapt to acquisitions, reorganizations, and new business unit creation with flexible organizational structures and reports that can analyze the company across any dimension. When implementing a cloud-based ERP solution, savings are realized from the very beginning as the ramp-up for a cloud ERP system is much faster than on-prem deployment. Additionally, Cloud ERP continually introduces new capabilities that support business best practices without incurring additional costs or undergoing complex upgrade processes. This gives companies the chance to leverage innovation as soon as it is introduced. Cloud ERP fosters both scalability and innovative growth.”
4. Enhanced Collaboration and Mobility. “In a hybrid workforce, your location managers, mobile sales teams and remote workers need to be able to access necessary information without needing to be at the company’s primary location, reducing travel and associated costs. Mobile capabilities are built into SaaS ERP products rather than added on as an afterthought. Cloud ERP systems also allow for real-time data updates. This means that when one department makes changes or updates data, other departments can immediately see and act upon those changes, ensuring everyone is working from the most current information. Whether accessing Cloud ERP from a desktop in the corporate office or a mobile device at home or on the road, users encounter the same unified experience thanks to the same universal interface.”
5. No Effort Patching. “It has become a constant mantra among IT departments — keep your systems fully patched with the latest updates. While patching certainly helps with cybersecurity and system performance, it is also a mundane, costly process for the IT department. By removing patching and updating from their plate, you could instantly free up considerable time and expense for them. With automated patching in cloud ERP systems, security updates are applied as soon as they’re available. This swift action extends to zero-day vulnerabilities, which are prime targets for hackers. Given today’s heightened emphasis on security, cloud ERP emerges as a decidedly more secure option.”

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