While “the cloud” is no longer a new concept, there are still a lot of misconceptions and concerns around security, flexibility, and cost of cloud-based ERP. Let’s take a look at the four biggest cloud ERP misconceptions we hear from clients.
Misconception #1: My Data Won’t Be Secure
Cloud-based ERP solutions are designed from the ground up with high-security measures in place. There are many security certifications and data center audits that ensure that the data you store in your ERP software will have the most stringent security measures in place. Though most modern cloud technology is secured under a blanket of guards, it is still wise to verify that your data will be safe.
For example, some of the security features that NetSuite has includes guarded premises, a dedicated security team, SSAE 16 Type II-, ISAE 3402 Type II-, and PCI-compliant. There is often a misconception that data stored in the cloud is insecure because it is not housed on-premise. In reality, data stored in the cloud is heavily secured, even more so than most on-premise stored data.
Misconception #2: My Business is Too Small for Cloud ERP
The fact is, small and medium-sized businesses are perfect candidates for cloud ERP because many don’t have the resources to invest in the massive infrastructure that on-premise ERP software solutions require—storage, servers, facilities, security, IT staff, etc. Modern cloud-based ERP solutions don’t need any infrastructure to run except, of course, an internet connection and a connected device. The cloud evens the playing field by greatly reducing that initial investment for ERP implementation.
For example, the cost of NetSuite—the world’s leading cloud-based ERP—isn’t a one-size-fits-all model; its price is tailored to each customer and depends on specific needs including the number of users, requirements, add-ons, contract length, and more.
Misconception #3: Cloud ERP Isn’t Flexible Enough
It’s true that some cloud ERP systems aren’t flexible and lock you into the vendor set up the software, but NetSuite isn’t one of those. In fact, NetSuite is known for its flexibility—both with the technical configuration and scalability.
NetSuite allows you to customize your instance, integrate third-party applications, or develop new solutions when necessary. Plus, all customizations carry forward (read: don’t break) with the platform’s bi-annual automatic updates. Plus, as your business grows, NetSuite scales with you—without the pains and costs of investing in new hardware and servers. What’s inflexible about that?
Misconception #4: Cloud ERP is Difficult to Implement
While it’s true that there are a lot of ERP implementation horror stories, you won’t be a statistic if you go about it the right way. Just because it’s a web-based program, many companies have the (wrong) impression that they can set it up themselves but that isn’t always the best idea.
Fortunately, there are plenty of experienced professionals ready to assist you in your transition to a cloud ERP who will make it look easy. Look into hiring a certified third-party firm to help with process documentation and optimization, implementation, integrations, training, and more. While it is an added expense, it will be worth it in the long run.
With a tool like NetSuite, there is no longer any excuse to stay away from cloud ERP.
The cloud is here to stay, and over time, all the concerns and misconceptions that executives have about the technology will be proven false. By migrating to cloud ERP sooner rather than later, you will only improve business processes, efficiency, and growth.
See for yourself and build a custom demo today!