Advantages and Disadvantages of Cloud Computing in ERP (Essay Sample)
the essay entailed the Advantages and Disadvantages of CLOUD COMPUTING for Enterprise Resource Planning (ERP). The essay has compared and contrasted the merits and demerits of cloud computing, to support the thesis statement to conclude the side that weighs the other. through the discussion, it is concluded that the advantages of cloud computing for ERP outweigh its disadvantages.source..
Cloud Computing’s Advantages and Disadvantages for Enterprise Resource Planning (ERP)
Cloud computing is a collection of computer services such as server hosting, data storage, networking, etc. People or companies have on-demand access to common cloud resources. The term "cloud" refers to information and data that is continuously secured irrespective of computer hardware resources, and when big data is connected to the internet, it forms the cloud server. ERP systems help consolidate various business functions, optimize and oversee client relationships, and help interrelate with suppliers to achieve changing consumer needs more quickly and productively. When working with ERP, it is essential to comprehend every business's performance to provide clients with the best possible service. Cloud computing has many benefits and drawbacks, but its advantages for ERP outweigh the disadvantages.
The first advantage of cloud-based ERP is that it requires little maintenance. The vendor handles the deployment process when using a cloud-based ERP (Abd Elmonem et al. 4). The businesses get their system operating much faster than adopting an on-premise Enterprise resource planning system. Similarly, the vendor handles the management functions to speed up the deployment process that will benefit the organization and handle updates of new features that may be added to the deployed product. Therefore, the enterprises or customers are assured and confident of running the most up-to-date software without allocating money or time for software upgrades.
Secondly, cloud computing provides more exceptional support. Customers need to choose the most suitable ERP solution that fits the enterprise (Tavana et al. 4). Vendors maintain the ownership of hardware and software that they sell; thus, they are more likely to provide extensive 24-hour support to the company. Accordingly, the company that adopts an on-premise Enterprise resource planning system will be forced to purchase available support packages, whereas cloud-based systems come with the overall package.
Thirdly, ERP systems benefit from increased security when using cloud computing. A cloud-hosted system may be secure than an on-premises system (Abd Elmonem et al. 5). Previously, it was widely speculated that backing up a business's sensitive data in the cloud servers was too risky. However, it is now evident that several ERP data center enterprises can offer a more secure environment for data storage. On this account, entrepreneurs must adapt to business requirements to keep growing their enterprise if any problem occurs because their brand is at stake.
Fourthly, the cloud-based system is scalable. Generally, a business intends when it is ready to implement an ERP solution upon expanding its existing system (Abd Elmonem et al. 4). A cloud-based Enterprise resource planning allows a company to instantaneously adapt to changes based on company needs, making this solution very appealing. On-premise ERP is labor-intensive and time-consuming, whereas a cloud-based system allows making changes that fit business operations.
Contrarily, one of the demerits of cloud computing is that long-term expense is higher. The cloud services cost increases as the scalability of data increases (Tavana et al. 4). Businesses should consider not only its transparency but also the monthly cost of using cloud applications. Therefore, long-term expenses should be evaluated before adopting a cloud-based ERP system because it becomes more expensive over time as more big data accumulates.
Secondly, Cloud computing encompasses connectivity problems. Enterpri
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