4 min read

Adapting to Change: How Cloud-Based ERP Reshapes Business Dynamics

Adobe Cloud

The COVID-19 pandemic has had a significant impact on the way businesses operate, and one of the most notable changes has been the increased adoption of ERP software. ERP systems provide a single platform for managing all aspects of a business, from accounting and finance to manufacturing and sales. This makes them well-suited for the current environment, where businesses need to be able to operate remotely and efficiently. 

As a result of these factors, the global ERP software market is expected to grow at a CAGR of 8.1% from 2021 to 2025. The cloud ERP segment is expected to be the fastest-growing segment, driven by the increasing adoption of cloud computing and the need for remote work capabilities. 


What is Cloud ERP? 

Cloud ERP is a software-as-a-service (SaaS) solution that provides businesses with a single, unified platform for managing their core operations. It runs on a secure cloud server, allowing users to access it from anywhere with an internet connection. Cloud ERP integrates all a company's data and processes into a single system, which can help to improve efficiency, visibility, and decision-making. In today's digital economy, Cloud Enterprise Resource Planning software stands as a contemporary, cost-effective, and all-encompassing answer for businesses in operation.  

Diverse types of Cloud ERP deployment models




Multi-Tenant SaaS

The purest manifestation of cloud ERP is found in multi-tenant SaaS ERP. This iteration usually boasts a more streamlined array of modules and features compared to its on-premises counterpart. Sharing a single software instance among multiple users results in cost-efficiency, simplicity, and standardization, distinguishing it from most on-premises ERP systems. 

Single Tenant SaaS

An alternative SaaS model is the single tenant version, which partitions the software to grant buyers enhanced control over their ERP. This empowerment enables customization, a facet often absents in multi-tenant SaaS offerings. 

Private Cloud and Hosted ERP

Private cloud and hosted ERP constitute two other guises of cloud ERP. These variations commonly entail deploying the same on-premises software within a third-party provider's data centers. While exhibiting cloud-like traits such as scalability and on-demand usage, the line between on-premises and cloud ERP becomes progressively indistinct. Some enterprises even uphold their private cloud infrastructure. 

Hybrid ERP

In cases where SaaS ERP, particularly the multi-tenant kind, falls short in terms of customization, companies seeking tailored features and integrations of an on-premises ERP system may opt for hybrid ERP. This amalgam integrates on-premises and cloud ERP modules and associated applications. It delivers several technological advantages of SaaS while upholding the security of a familiar legacy system, though it introduces formidable integration complexities. 

Benefits of using a Cloud ERP solution

There are many benefits to using cloud ERP, including: 



Enhanced Security

Cloud ERP is typically more secure than on-premises ERP, as it is hosted in a secure data center and is backed up regularly. This can give you peace of mind knowing that your data is safe and secure.



Better Scalability

Cloud ERP can be easily scaled up or down to meet the changing needs of your business. This is important for businesses that are growing rapidly or that experience seasonal fluctuations in demand. 




Cloud ERP is typically more cost-effective than on-premises ERP, as you do not need to purchase and maintain your hardware and software. You also only pay for the features and modules that you need, which can save you money. 



Ease of use

Cloud ERP is typically easier to use than on-premises ERP, as it is hosted in the cloud and does not require any installation or maintenance on your part. This can save you time and money on IT costs. 



Global Accessibility

Cloud ERPs are accessible from different regions and can support global business operations without the need for localized infrastructure.


Challenges of using a Cloud ERP system  

While Cloud ERP System has numerous benefits, one should be aware of the downsides or challenges as well. Some of the drawbacks considered include:  

Customization and Adaptability  

  • When compared to on-premises alternatives, cloud ERP may offer less customization. 
  • Established business processes adapt to the ERP's standardized workflows, leading to employee resistance and a potential loss of efficiency.   

Costs Over Time  

  • Organizations need to carefully consider the overall costs, data transfer costs, and potential add-ons since it is cost-effective overall as subscription fees can add up over time.   

Lack of Control  

  • Organizations rely on the cloud provider for updates, maintenance, and patches.  
  • This lack of control over when and how updates are applied can be a concern, as the updates might introduce unexpected issues or changes.   

Performance Issues  

  • The speed and performance of cloud ERP systems depend on factors like internet bandwidth and the cloud provider's infrastructure.  
  • Inconsistent performance can impact the user experience and productivity.   


Initial Learning Curve  

  • Transitioning to a new cloud ERP system requires training for employees, which can result in a temporary decrease in productivity as users need time to learn the new system.  


Regulatory and Compliance Challenges  

  • Ensuring cloud ERP system complies with strict industry requirements for data storage, handling, and reporting regulations.     


How to choose the right Cloud ERP solution 

Choosing the right cloud ERP solution can be overwhelming, with many options out there. To help make the process easier, here are some key points to consider: Research, Evaluate, and Select.  

ERP Research: Business Size and Industry  

  • When choosing a cloud ERP solution, keep your company's size and industry in mind, as each has specific needs or requirements that must be satisfied. 
  • For example, a manufacturing company will require a different ERP solution from a retail company. Choose a solution that is tailored to your needs.  

Evaluate and Compare: Ease of Use and Implementation

  • The best cloud ERP solutions are easy to use, navigate, and implement. Before selecting a solution, check for user-friendliness and how easy it is to upload and organize data. 
  • Also address the industry-specific pain points having necessary reporting and analytics functionality into consideration.  


Select the Solution: Budget  

  • Considering a budget before shopping for an ERP solution is essential to avoid overspending on unnecessary features.  
  • It is essential to look for a solution that meets your needs and provides the most value for the money spent.  


Remember that a more expensive solution does not always mean it is better.  


Features & Level of Support You Need  

  • Consider the essential features needed for the effective functioning of your business, thinking about additional features that can provide support for future business growth. 
  • Cloud ERP vendors offer various levels of support, such as phone support, email support, and online forums.  

Cloud ERP - The Future is in the Cloud: How Kensium can help 

Cloud ERP is a powerful tool that can help businesses of all sizes improve their efficiency, productivity, and profitability. By comparing different vendors and choosing the right solution for your needs, you can ensure that you get the most out of your cloud ERP investment. 

Selecting the right cloud ERP solution takes time, budget considerations, research, and weighing the features. This blog post has demonstrated how it surpasses traditional ERP systems by offering a customized variety of solutions for various businesses.  



An overview of one of our ERP success stories: Avante Health Solutions was formed through a series of mergers and acquisitions as each division was a separate company utilizing the old processes.  

From customer service to inventory, no standard process was in place, which highly impacted customer service. As a result, they decided to consolidate as one unit – Avante partnered with Kensium to execute a successful timeline while meeting their complex needs.  

Read the full customer success story here.

Embrace the forthcoming paradigm of Enterprise Resource Planning alongside Kensium, where operational efficiency seamlessly converges with profound industry expertise. Initiate the unlocking of novel avenues for growth at this very moment! 

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