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Top cloud ERP benefits: New report highlights customer experiences

by Bridget McCrea
Contributing Writer,

A new report from Aberdeen reviews high points of using a cloud-based ERP and shows how several companies are benefitting from their non-traditional enterprise resource planning solutions. Nick Castellina, Aberdeen's senior research analyst, cites "business transformation" as the most compelling reason to move to cloud ERP. Other advantages being reported by cloud ERP users include easier scalability of their businesses and the ability to experiment with innovative business models due to flexible software capabilities.

Lower startup costs and more accurate implementation budgets appear to be big draws for companies that turn to ERP-based cloud options. According to Aberdeen, organizations with cloud ERP stayed within their implementation budgets as compared to the 12 percent that went over budget when installing on-premise solutions. In his report, Castellina says firms using cloud ERP were also more likely to hit or exceed their return on investment (ROI) targets, with such companies achieving ROI within 24 months versus 31 months for on-premise users.

Collaboration Counts

Going beyond cost, Castellina discusses the role that cloud ERP plays in collaborating across multiple company locations. "Since a cloud solution can be accessed anywhere Internet access is available," he writes, "employees can communicate more effectively and decision makers can have visibility into real-time data."

Aberdeen reports that 24 percent of cloud ERP users were seeking applications that could scale up with their businesses. So, rather than needing to rely on one instance of a solution, these firms turn to the more scalable cloud option to "avoid multiple, lengthy implementations that will hinder their ability to grow," Castellina writes.

The fact that vendors handle software upgrades automatically (this is an area Microsoft has yet to dip its toe into with Dynamics ERP) is ...

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About Bridget McCrea

Bridget McCrea covers business and technology topics for various publications. She can be reached at

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