Cloud software solutions are being used in more and more companies. These primarily include ERP systems, which cover numerous entrepreneurial tasks, such as procurement, materials management, or personnel management.
Traditionally, ERP systems are installed on the company’s server and integrated into its own IT infrastructure. They were mainly used from there. Cloud software solutions are replacing this pattern. For many companies, this isn’t easy to understand. Buzzwords are buzzing all over the web, preventing companies from getting an accurate impression of the various solutions or the advantages of business software in the cloud.
ALSO READ: Target Group SMEs: Software Providers Recognize The Potential
What Is Cloud Software?
The classic ERP software no longer runs on the company’s server with cloud solutions. It is located on the software provider’s central servers. The employees in the company then access the applications and services via the web browser. The companies do not need any particular infrastructure or special software.
Access is also possible with a smartphone or tablet PC. The various offers differ significantly in their range of functions, user-friendliness, and monthly costs. Top dogs with an extensive range of functions implement all critical processes and functions down to the smallest detail in a very user-friendly manner, such as the test winner lexoffice XL and leaner solutions.
What Are The Key Benefits Of Cloud Software Solutions?
Companies have some significant advantages with the use of cloud software. This includes making better use of their resources and making better use of employees. At peak times, the solutions can quickly adapt to the new requirements without purchasing new software.
In addition, the costs for the software solutions can be easily calculated. Depending on the number of active users, customers pay a fixed fee, usually in monthly instalments. There are no unexpected costs because, for example, a short circuit or water damage paralyses the server.
Particularly Suitable For Standardised Business Processes
Cloud software is very suitable for all standardised business processes. The provider carries out updates regularly, which usually does not affect the customers’ business activities. Therefore, no major update projects in the companies would necessitate complex modifications and adjustments.
The software providers’ solutions are directly mobile-ready so that companies can save themselves from expensive mobility projects.
Hardware Costs Are Significantly Reduced
Cloud software runs on an external server. The hardware costs for purchasing your expensive server are eliminated. These solutions are also affordable for small businesses that have previously avoided these applications for cost reasons. In addition to the server costs, there are also no costs for backups and IT security for the servers.
The provider takes care of that. It’s all included in the monthly fees. Companies outsource many tasks and hand over the responsibility to the cloud provider. This keeps your own IT much leaner. The companies can concentrate on their core processes.
Do Cloud Software Solutions Also Have Disadvantages?
Of course, there are also disadvantages to cloud solutions that every company should weigh against the advantages. The pure licence costs are often higher than the costs for the software licences before. However, this includes other costs that were previously added to the software costs, such as expenditure on hardware or IT security measures.
On The Subject Of Data Security – Is The Provider Trustworthy
Many companies are also put off by the thought that sensitive company data will subsequently be stored in a cloud, where it may not be as secure. Companies are handing over control and protection of data to the cloud provider.
However, most of these providers are at a very high level in terms of security. The company’s security measures are usually not sufficient. However, for this, it is necessary to trust the provider.
Another disadvantage is that the options for expansion and customization are severely limited. The cloud providers offer standard software that cannot be adapted. Suppose the processes in the company deviate too much from the standards.
In that case, the first thing to do is to check to what extent the solution fits or whether the internal processes can be adapted to the applications. The implementation of cloud solutions in companies sometimes turns out to be a challenge.
Nothing Works Without The Internet
Another notable disadvantage is the dependency on the Internet. Cloud solutions only work as long as the Internet is available. If the Internet fails, the processes in the company come to a standstill. In addition, large amounts of data are generated through an ERP system via the cloud. This requires a reliable and robust internet connection.
Should Companies Adopt Cloud Software Solutions Now?
There is no general answer to this question. It depends on the company. If the business processes in the company are already highly standardised, cloud software solutions can make many things more accessible. However, if a company occupies a tiny niche that only rarely exists anymore, there will be no standardised solution that fits the business processes.
Then a freely configurable software is better. However, if the business processes in the company are prevalent, then the cloud software could be worth considering. First, it is essential to check how reliable the Internet is.