How can SMEs Benefit from Cloud-based ERP Solution

Cloud ERP solution does not require a substantial initial investment

Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Enterprise Resource Planning (ERP) solution has ushered a better and efficient way of doing business. ERP solution has become indispensable for the growth of all businesses, yet, there is reluctance amongst the SMEs to adopt such a technology. The prime reason being, on-premise ERP requires huge capital investment to purchase and manage the IT hardware/software.


On the contrary, Cloud-based ERP is a flexible and cost-effective alternative for SMEs. The system also enables small and medium-sized enterprises (SMEs) to access incredibly robust technology at an affordable cost, and at a low cost of ownership, with quick deployment and a fast return on investment.

Let us further illustrate the benefits of Cloud ERP.

  • Minimized initial investment: On-site ERP solutions require large investment and SMEs do not usually have such a budget for investment. Hence, cloud- based ERP is like a breather for the small and medium enterprises as Cloud ERP solution does not require a substantial initial investment.
  • Minimized technical staff implication: Cloud- based ERP solution eliminates the cost of installing and integrating an additional hardware to support the ERP, thereby enterprises don’t have to hire additional technical staff to support the application on an ongoing basis.
  • Subscription benefits: Since all SaaS (Software-as-a-Service) services are offered on a subscription basis, there are no unexpected costs. Thereby, the enterprise can keep a check on the expenses on a monthly basis.
  • Better security: Cloud vendors typically provide a higher level of security. In the cloud, essential integration between enterprise applications and supported data, processes, and user interfaces isn’t an issue.
  • Low maintenance cost: The cost for running the SaaS system is very low.
  • Easy integration: Cloud ERP solutions can easily be implemented and integrated faster into the enterprise’s day-to-day activity.
  • Easily scalable: Cloud services are typically virtualized allowing for dynamic resource availability. Thus resources are scalable on demand. This allows companies to pay for the amount of usage that they need as it fluctuates with their demand.
  • Fast and agile operations: The marketplace is increasingly unpredictable. Through cloud-based ERP solutions, business owners and stakeholders can respond to the dynamic needs of their clients more quickly, giving them the edge to outmaneuver the competition.
  • Flexibility and Accessibility: Cloud ERP enables mobility, allowing access from pretty much any device, anywhere, anytime. It reduces barriers to innovation by allowing new classes of applications and services to be delivered that were not possible before.
  • Increases productivity: With Cloud ERP the customers do not have to worry about problems related to implication, software, etc, as all of it is taken care by the vendor. Hence, there is ample time for the user to focus on innovation to enhance their core business.
  • Easily expandable: Additional users can easily be added into the SaaS system without implementing any additional technology.
  • Automatic upgrades: Cloud vendors can upgrade their systems economically because of the single source codes and multi-tenancy features. This increases an organization’s capabilities as the upgrades are done automatically by the vendors.
CA Kunal Singhal

Written By

CA Kunal Singhal, an IT enthusiast, is the pioneer of developing India’s first Tally Integrated ERP software solution. He is an avid learner and firmly believes that ‘innovation is the key to successes’. He likes to spend his leisure time exploring new places and is very fond of doing little things for the society.