October 31, 2014

Why Cloud Based ERPs are Perfect for Startups

Startup companies face a host of challenges that they need to overcome should they wish to succeed in today´s business environment. One of the greatest concerns for these enterprises is the necessity to obtain an agile, flexible and affordable software infrastructure solution.

As most startups and SME´s lack the resources and the real-world skills to effectively manage such platforms, cloud based ERPs can be a great logistical and operational advantage. Let us look at a few key areas where such services provide the greatest benefits.

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Low Cost

Numerous studies have shown that cloud based solutions provide a substantially lower total cost of ownership (TCO) than more traditional pipeline management platforms. This is mainly due to the quite obvious fact that additional hardware is not needed to host these systems. Not only are these operational costs mitigated if not eliminated, CFO´s can also rely on a predictable monthly budget around these services, therefore accruing little if any additional expenses.

Rapid Uptake

Cloud based ERP solutions are able to be implemented in real-time and across multiple departmental platforms. Thereafter, many of these solutions can be easily integrated into existing management and inter-departmental communications templates. However, this uptake can also refer to the speed at which individuals that are relatively unfamiliar with the system can learn its intricacies. As these platforms have become exceedingly user-friendly, less time will be spent training employees and therefore efforts can return to the core aims of the startup with little interruption.

No Need for Expensive Hardware

As mentioned earlier, cloud solutions have done away with a businesses need to procure expensive hardware. As the nature of this ERP solution is based in the virtual world and across multiple platforms, no hardware is needed. Not only can this save on the initial cost of purchasing such equipment, there are no associated maintenance or upkeep concerns. This substantially increases the ROI with cloud based solutions.

More Secure and Always Updated

Additionally, cloud based solutions have always been more secure than traditional standalone platforms. Only authorised users can have access to these systems and often times, the service providers themselves are unaware of individual login passwords. Furthermore, these platforms are much less susceptible to physical theft or corruption that can occur with hardware such as physical computer farms or even the standard hard drive. Finally, the virtual aspect of this software allows updates to be carried out in real-time when needs be. These constant revisions serve to keep the platform running optimally and virtually guarantee no downtime.

These are but a handful of reasons why cloud-based ERP´s are the infrastructure system of choice for countless startup businesses. As many of these come with a free month trial period, a business has a wide variety of services to choose from at no initial cost. Indeed, cloud based ERP solutions have taken the small business management landscape by storm.

The DNetWorks Team

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