Developing and maintaining IT infrastructure is no easy feat, especially for small and medium-sized organizations. To focus more on business and scaling, an increasing number of companies are switching their ERPs (Enterprise Resource Planning systems) to the cloud. However, reliable, and cost-effective TrueCloud solutions are not easy to find. They tend to get lost in the sea of SaaS services that are marketed as ‘cloud’ but are actually not. This guide shares details on ways to differentiate a True Cloud solution from the rest and the value it can provide to an organization.
How is a True Cloud solution different from other cloud services?
True Cloud service providers build their solutions only in the cloud. The software is developed from scratch to run better as a fully-hosted solution. Experts are hired to host, maintain, and manage cloud services across hundreds of servers and data redundancy levels at the vendor’s own premises.
These True Cloud services are used by both organizations and the enterprise itself. As a result, the key difference between a True Cloud solution and a Hosted, Private, or Hybrid solution is that it is multi-tenant. Multiple single instances of code run on a single server, i.e., the server is simultaneously used by multiple organizations.
There are multiple benefits to multi-tenancy–
- Continuous and instant access to the latest product upgrades
- Cost-effective customizations
- Adequate support and security
- Uptime and easy disaster recovery, and
- Easy scaling, among others
According to Technology Evaluation Centers, businesses reported that the three major benefits of using ERP systems are reduced process time, increased collaboration, and a centralized enterprise-wide data system.
Side Note: 53% of organizations with ERP software use cloud-based solutions rather than on-premise enterprise platforms.
Advantages of using a True Cloud ERP
Evaluating the right-fit ERP for any business and seamless implementation are the most complex and challenging endeavors an organization can pursue. It takes up a significant amount of time, energy, and investment and, if done wrong, can have a lasting impact on a business’s growth.
A True Cloud ERP solution is a surefire way to avoid the setbacks companies usually face after moving to the cloud. Here are seven compelling reasons to switch to a True Cloud ERP-
1. Seamless upgrades and maintenance
As mentioned before, True Cloud vendors run multiple companies’ operations simultaneously. So when the latest product upgrades come in, it is the ERP software that gets updated, not a specific client’s software. This means that every organization gets continuous and instant access to upgrades.
Vendors also ensure clients are informed well in advance of an upcoming update and share details on when and for how long the system won’t be available.
2. Resilient infrastructure
Since True Cloud solutions are built for the cloud and on the vendor’s premises, it becomes their responsibility to ensure that businesses get the maximum amount of uptime possible. For example, companies like NetSuite offer contractual uptime guarantees to let companies know the percentage of time their system would be operational.
A multi-tenant environment also compels vendors to build reliable disaster recovery and risk management infrastructure. A copy of all the data is created and backed up so organizations can access it when needed.
3. Built-in security
To help customers keep their application, network, and data safe, True Cloud solution providers configure their systems in individual layers. These layers ensure that each organization can only access its own data and customizations.
Vendors also employ a dedicated security team and have round-the-clock monitoring tools, policies, and controls–such as fully guarded premises and physical access–to ensure that businesses enjoy otherwise unachievable security controls.
4. Easy to integrate and customize
Integrating solutions with the existing application gives organizations a competitive advantage, increases productivity, and helps derive valuable insights. However, it is a hassle and may not be as cost-effective to do on a fake cloud.
A True Cloud, on the other hand, is built to live and grow while being hosted. In NetSuite, for example, the centralized core ERP software is coupled with a flexible system that offers customization, extension, integration, and development in the cloud. Businesses can seamlessly integrate custom, NetSuite, and third-party apps into their existing solutions. These integrations and customizations run on the latest version automatically.
Moreover, these integrations do not require companies to connect with a systems engineer at the hosting firm but can be done in-house or with help from an implementation partner.
5. Cost-effective scalability
It is nearly impossible to predict the exact capacity needed to host an application. Consequently, businesses opting for fake cloud or on-premise solutions tend to overbuy or underprovision the number of software licenses.
By comparison, True Cloud solutions allow for variability in demand. They offer resource pooling and elasticity to help organizations scale instantly, expand seamlessly, and launch internationally at reduced costs. Additionally, as these ERP solutions extend a pay-as-you-go subscription model, it becomes easier for companies to plan their expenses in advance.
6. Business agility
Difficult times do not come with a warning. When companies have to swiftly realign their business, hosting on True Cloud solutions helps make the process much easier. It enables rapid deployment of business models and products, transactions of mergers and acquisitions, and completion of divestitures by eliminating the need to reconfigure or reprogram any of the software.
7. Lower maintenance costs
Fake cloud solution providers hand over the responsibility of hosting to Value Added Resellers (VARs) or other vendors. As a result, companies end up paying over 200,000 USD in hidden costs for scaling, versioning, customization, configuration, etc. This is not the case with True Cloud solutions.
Consider the ROI study by Nucleus Research on customers using NetSuite. It reported that organizations accelerated their financial close times by up to 50%, improved sales productivity by 12.5%, and increased inventory turns by 50% with the help of NetSuite services.
There are several other benefits of using a True Cloud ERP. Like the ability to adapt to potential changes in clients’ requirements, the time taken to realize business value, and performance. These and the abovementioned advantages are easily available to those who upgrade to True Cloud.
Need more information?
Drop us a quick message to find out more about the value of a True Cloud-based ERP solution. As a certified NetSuite partner, we can also give you the fast track on NetSuite rollout, maintenance, and support.