How is Cloud-based ERP better than legacy software?

  • 17 June 2020
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Even today many businesses are still using legacy software to manage their complex business functions. These homegrown solutions and excel sheets have been rendering reliable service for years. But, they do not have the desired functionality and features to address the dynamic needs of the business. They are usually fragmented, give little insights into critical data and offer little opportunity for innovation. 

Further, operations of these legacy systems involve high cost while up-gradation is highly complex and adaptation costs are immensely high. Therefore, smart companies avoid upgrading their running systems and switch to cloud-based ERP such as SAP Business ByDesign.   

Cloud-based ERP creates new opportunities for business

Cloud-based ERP creates room for innovation and helps you gain actionable insights on the move. The benefit of the SaaS model is that it can be implemented and scaled quickly without any major bottlenecks and disruption. Further, the development of innovative and new functions always take place in the cloud-first. With cloud ERP solutions, companies benefit from the immediate provision of new innovative technologies for automation, IoT, analytics, and AI.   

Let us quickly see how a cloud ERP has enormous advantages over a legacy solution.

  Legacy Software Cloud (SaaS) model
Innovation Low Innovation Rate Continuous Innovation
Implementation High efforts Fast Implementation
Operations High manual efforts Automated and fast
Upgrades High efforts Updates automatically
System risks High Low
Scaling Not scalable Flexible
High Availability Low Extremely High
Security Low security High security
Costs High due to maintenance Low costs

Let us quickly elaborate on these pointers and see how Cloud-based ERP is the best among all. 

Innovation:  A cloud ERP form the basis for technical and business innovations with cloud, IoT, machine learning, and analytics.

Implementation: Implementation is significantly faster and the degree of standardization is way higher.

Operations: Cloud-based ERP such as SAP Business ByDesign is highly automated with disaster recovery options.

Updates and upgrades: Maintenance and upgrades are carried out by the cloud ERP provider. 

System risks: Risk aspects such as software stability, running, uptime and maintenance is significantly reduced and shifted to the cloud ERP provider.

Scaling: A cloud ERP solution is highly scalable and can be scaled up or down as per the business requirements. 

High Availability: The system is up and running and is available all the time without any performance issues. 

Security: Cloud ERP providers invest heavily in security and ensure the highest standards of their security parameters. 

Costs:  One-time license costs and high ongoing costs required for maintaining, running and upgradations of a legacy solution are eliminated. Cloud-based ERP runs on a pay-as-you-go model. 

The benefits are clear and profound when it comes to embarking on cloud-based ERP. So, have you outgrown your legacy system or want to switch to cloud-based ERP such as SAP Business ByDesign? Uneecops has implemented cloud-based ERP for over 18+ industry verticals.

Nidhi Batra

About the author

Nidhi Batra is a marketing and brand communication professional with 10 years of experience working in the dynamic B2B marketing environment. She strategizes, writes, reviews a variety of content for demand generation and sales support activities. Having a Master’s in English from Delhi University, she knows how to navigate her readers on insightful journeys with her SAP published blogs and thought leadership content.