Cloud-based computing, also known as Software as a Service or SaaS, in short, is a software that allows users to access software applications that are run on shared on computing sources and is centrally hosted via the Internet. The computing resources are usually maintained in data centers that are dedicated to launching various applications on various platforms. Cloud ERP is a SaaS that allows its users to access Enterprise Resource Planning(ERP) Software over the Internet.
Cloud ERP is generally chosen because of its lower costs and because these software’s are generally rented on a monthly basis, rather than its upfront purchase. This removes the need for any other additional software and hardware maintenance, that helps in decreasing operational costs. Its modern applications allow users to access their system generated profiles at any point of time. This helps entrepreneurs in their business, wherein they can refer for any critical details, at any point in time, anywhere in the world.
To differentiate cloud-based ERP from physical ERP, one can say that the internet access helps to share and transfer data internally and externally at any point of time, making real-time business, less complicated. Apart from a central host, Cloud-Based ERP also comes with backup and recovery options, that helps in the uninterrupted usage of the software.
Spending in Cloud Computing has grown at a rate of 4.5 times its rate of IT spending since 2009. Cloud Service demand has been predicted to grow at 18% in 2018 to $246.8 billion from $209.2 billion in total worldwide revenue. SaaS alone is estimated to grow by about 20%, by 2018 more than 50% of IT would be Cloud-Based and by 2020 60-70% of all services and technology will be Cloud Based.
Cloud ERP Software is primarily used by small and medium-sized businesses and is generally considered a good fit for startups because of its access to multifunctions at a reasonable price. Companies like ExpoStores have started their businesses with the help of Cloud ERP, and their success has been undeniable.