April 19, 2015

Advantages and disadvantages with cloud ERP systems

Cloud ERP systems have many advantages and disadvantages. In some instances cloud ERP is a better solution then traditional ERP systems, however it may not suit all companies, depending on their size, complexity etc.

The table outlines some of the advantages and disadvantages that have to be taken into account when selection whether to choose traditional or Cloud based ERP systems.



Lower upfront cost


Lower operating cost

Privacy issues


Down time of servers

Faster implementation and set up

Slow internet


Difficult to customise

- 2 comments by 1 or more people Not publicly viewable

  1. I have recently made an entry comparing cloud and traditional ERP solutions. Implementing an ERP is an objective decision makin process. Most but not all of the situations, the advantages such as low cost, fast implementation, scalability and mobility can forestall some negative disadvantages such as security and customisation issues as long as the company’s objective is to implement an agile, fast and cost effective solution.

    19 Apr 2015, 23:13

  2. Further adding to advantages of Cloud ERP systems,

    Rapid updates & upgrades (faster upgrades for cloud based ERP in comparison to on-premise solutions)

    Improved system availability and disaster recovery (better protection of data and recovery)

    Focus on core competencies (outsourcing ERP helps company to focus on core internal IT functions)

    20 Apr 2015, 01:51

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