It’s easy to see the advantages of a cloud-based ERP in terms of the user experience: real-time access to all data where you need it and when you need it, as well as ease of collaboration across departments and regardless of location. When we dig deeper into the on-premise vs. cloud-based server environments, we discover even more benefits to the cloud.

1. Reducing Ransomware Vulnerability

Server-based environments are the most vulnerable to the threat of ransomware which rapidly infects hardware and software, bringing all business operations to a halt until the attack is mitigated.


While no system is entirely immune to ransomware, the cloud environment allows you to minimize downtime.  Perhaps the most significant advantage of the cloud in terms of avoiding ransomware demands is the ability to create robust and well-tested backups, and mirror sites that can be accessed when the original source is lost or compromised.

2. Ease of Access Authentication

In the fast-changing business world, it’s not uncommon for roles to evolve and change, so it’s essential to be able to efficiently add, remove, and update data access as needed. The structured data access capability of the cloud allows ease of authentication and encryption of data across all devices, providing the most robust security and data protection.

3. Automatic Updates

In a server-based ERP, software updates are expensive and time-consuming, requiring software to be purchased then installed on each workstation. 


By comparison, in a cloud-based system, software updates are completed all at once company-wide as part of your maintenance plan. Your cloud service provider takes on the responsibility of system maintenance and software updates, as well as system performance and data availability. 

4. A Cost-Effective and More Secure Server Environment

With the cloud’s ability to scale storage as needed, there is no need to pay for storage that you’re not currently using. What’s more, cloud storage can be tiered, allowing businesses to further reduce costs by limiting expensive high-speed access to only the data requiring it.


In addition, the cloud’s centralized backup capability enables the automation of data storage to centralized cloud locations, which are more secure and eliminate the administrative costs associated with local backup. 

5. Reduced Capital Expenses for Start-up 

Purchasing software licenses is still necessary for a cloud-based ERP. However, the significant upfront cost associated with on-premise system software requirements is replaced with an ongoing monthly fee, making it more attainable for businesses where budget is a concern. 


The cloud also makes physical data centers unnecessary, further reducing operational costs by eliminating the fees associated with real estate, utilities, and personnel required to run these locations.


Are you interested in learning more about the benefits of migrating to the cloud? Please visit our Cloud Computing resource page.