Cloud flexibility requires that planners carefully assess company needs

12/5/2011 at 12:38 pm by The Sage ERP Team

One of the best things about enterprise resource planning is that it doesn't have to be the static computer program that most people imagine when they think about software. Instead of being a discrete application that exists only on a single computer, it is actually constituted by a series of connected devices. That doesn't even account for the fact that it might be remotely hosted in the cloud and exist on multiple servers around the country.

This flexibility is not only advantageous for companies that want to track and monitor their resource levels – it is actually essential for the optimal running of an organization spread over a wide geographic area. However, many companies that aren't as diversely located can also benefit from cloud flexibility when it comes to ERP. Here are some ways that enterprises will benefit tremendously by having limits on their operations lifted.

Changing software types
When companies decide to use cloud ERP, they might be considering it as a long-term strategy for the future. However, others might view it as a means to begin using enterprise resource planning before their offices of facilities are settled. Consequently, they'll have cloud ERP software active for some time before moving back to dedicated servers. Fortunately, this isn't a difficult leap and can be executed rather easily by working closely with a vendor.

Adding software
There are many kinds of business software available to enterprises that can make their operations much easier and more efficient. When a company works closely with a software vendor and has ERP based in the cloud working for them, they'll probably become interested in other applications suites. Customer relationship management, accounting software and business intelligence are very useful, can be hosted in the cloud and graft very easily onto existing cloud ERP systems.

Expansion
If new facilities open or additional office need to be created, companies might be hesitant because the process of setting up such locations with the right ERP systems can take too long for it to be profitable. This is not the case at all when software exists in the cloud because servers and applications don't need to be installed and activated. Instead, only computers and an internet connection need to be present.

Physical deployment
Traditionally, deployments over large geographic areas meant that a company would need to coordinate a complicated set of moves. With cloud-based software, physical distances mean very little. The cloud will connect to Juneau, Alaska, as easily as it does to Tallahassee, Florida, provided that they both feature adequate internet connections.