Advantages of cloud-based ERP or CRM? What are some of the disadvantages??

Today I’ll be presenting about the advantages and disadvantages of Prague based ERP or CRM solutions for professor assignments ms I am CIS 591 course at Arizona State University first.

Let’s start out by answering the question of what is cloud computing is the concept of providing computing resources as service over the Internet these services can be software such as what we are discussing such as ERP or CRM platform or infrastructure users can connect to these services without planning procuring building configuring or maintaining the hardware or software.

The type of cloud that the typical ERP CRM provider is talking about is the public cloud which is something that multiple clients utilize over shared infrastructure over the Internet’s cloud-based ERP or CRM is a provider that specializes in hosting ERP CRM applications that are accessed via the internet.

They handle both the hardware and application software they handle the databases storage OS setup and maintenance network connectivity backups disaster recovery authentication security and other aspects that are required to run an application the client only requires an internet connection to make use of the application.

If you have the cloud-based ERP and or CRM providers are shown below a few of the providers mentioned in our lectures include NetSuite Oracle si P and Sugar CRM now let’s talk about the advantages of a cloud-based ERP CRM solution.

There is playing a fluff to be found on the marketing websites on the internet so really anything you read about you should carefully evaluate on how this may or may not be true for your company now let’s start with the advantages ownership cost is less than an on-premise solution this refers specifically to lower upfront costs such as the high capital cost for building an ERP CRM system.

It includes hardware excluder licenses and implementation these costs would generally be considered more important for a small or medium business an SME due to a less developed infrastructure and expertise found at the firm larger firms would be able to leverage their infrastructure and expertise without setting new hardware up or hiring to fill that void now.

Let’s talk about the reduced delay for updates and functionality compared to traditional on-premise ERP CRM solutions next system accessibility is part of the cloud functionality and most cloud solutions have higher levels of user-friendliness and usability implementation speed one of the top benefits for cloud-based ERP CRM solutions.

Integration with other software or cloud services many providers have toolsets that assist in the integration with other cloud software focus on core competencies IT departments can focus resources on other areas of the business or core IT functions as opposed to the ERP CRM solution.

Now let’s discuss some of the disadvantages associated with the cloud-based ERP CRM solution.

First, you have the loss of control of the data your data is being stored and managed by the provider you lose control over when the provider chooses to upgrade the application with on-premise solutions.

You may have a business case to hold off on an update until a later date some of that control is lost with a provider you lose the ability for extensive customizations or if you need to implement a complex integration it may not be possible this is seen as being more important for large firms and not as important for SMEs security risk.

This is more this is a more controversial risk as many providers claim to have high security implemented in their environments but there is always a question as to what is actually being practised this is seen as more important for large businesses than SMEs loss of IT competencies.

IT departments could lose staff and knowledge due to outsourcing the ERP CRM solution these are also more important for large organizations as compared SMEs are strategic risks with mergers and acquisitions and a high degree of dependence on the service provider cost may not be as reduced as much for organizations based on how much a firm has invested in their infrastructure firms with substantial infrastructure may not save as much as thought subscription costs do not change and will likely go up at every renewal capital investments made for an on-premise solution.

Would depreciate overtime for our discussion board questions I leave you with these two questions looking at the list of advantages and disadvantages would you recommend a cloud solution for your company why or why not also number two assume that you are an ERP CRM consultant for an organization that is considering a cloud-based solution for their project are there any other advantages or disadvantages that I left out that you can think of thank you for taking the time to view this presentation.

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