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SMBs gravitating toward ERP to cut costs

1/25/2013 at 7:59 am by

The United States economy has been stagnant in recent years, and small and medium-sized businesses (SMBs) have been affected as much as anyone.

As a result, many SMBs have looked toward innovative technology as a means of cutting costs while also increasing productivity. More often than not, cloud computing software has offered the right solution – including enterprise resource planning (ERP) systems.

A recent blog for ERP Cloud News highlighted several benefits of cloud-based products, beginning with improved productivity. Because the cloud allows companies to integrate multiple functions – for example, many cloud-based ERP systems have integrated business intelligence programs and customer relationship management – workplace efficiency has been able to skyrocket.

Another advantage of cloud-based solutions is that they are typically able to accommodate mobility strategies. SMBs in particular have enjoyed significant benefits from accessing corporate applications outside of work.

“Our agents need to be able to send and receive email on all sorts of devices from anywhere they happen to be,” said Kevin Lisota, CEO of a real estate firm, according to the San Francisco Chronicle. “The sync capabilities of [the cloud-based program we use] mean that I can easily enable my employees to get email on all their phones and computers from any web browser.”

According to the source, through improved communication and collaboration, many SMBs have been able to increase their productivity as the result of implementing cloud-based technology.

Cost-efficiency in the cloud
Saving money is a goal of just about every business, and cloud-based technology does that extremely well.

As the ERP Cloud News blog pointed out, scalability and flexibility are two of the top benefits of cloud computing. Cloud-based solutions are subscription-based, which means companies only pay for what they use and can scale up or down at any time. In addition, the cloud tends to be more compatible with emerging technology than many legacy packages.

In a separate blog for Business 2 Community, Tom Caper, sales manager at Rand Group, highlighted cost-efficiency as the top reason organizations should move their ERP systems to the cloud. Two of the reasons, he said, were because of the aforementioned scalability of cloud-based ERP, as well as its pay-as-you-go characteristic.

Caper also noted the lower costs, both in terms of powering these systems and required IT services. As a result, he said that most cloud-based ERP systems tend to achieve a fast return on investment.

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The Sage ERP team report on various topics related to ERP and business management.

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