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Cloud Enterprise Resource Planning: 3 Reasons Why Cloud ERP is Misunderstood

While some businesses see the benefits of a cloud-based Enterprise Resource Planning solution, many others may have misinformation or doubt about making the transition to the cloud - in this article we discuss 3 cloud ERP theories’ that may be holding you back.

VAI Resources


  • VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail, and service sectors. An IBM Gold Business Partner, VAI is the 2012…

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Has your business yet to take advantage of Cloud ERP?

According to Aberdeen Group, Top Performers Know It’s Time to Migrate to Cloud ERP, the percentage of organizations considering a cloud solution has increased from 23% to 59% since 2016; finally surpassing on-premise solutions.

While some businesses see the benefits of a cloud-based ERP solution, others may have misinformation or doubt about making the transition to the cloud.

Is Cloud ERP misunderstood?

Here are 3 Cloud ERP theories’ that may be holding you back:

1. Cost Concerns. Many organizations would believe there are cost concerns when investigating Cloud ERP solutions, however, those that choose ERP in the cloud do so because of the cloud’s ability to provide a centralized platform for all data needed to run their organization.

Subscription payments make it much more practical to utilize an ERP solution without having a large, up-front cost, in addition to saving on any future upgrade to existing servers. This strategy fits with the needs of changing organizations that are now able to take advantage of the capabilities that are essential for success.

2. Termination of IT Jobs. An argument can be made that cloud computing automates tasks that are performed by employees, eventually eliminating the need for IT resources. However, many predict that cloud computing will increase the number of workers in the field.

With lower cost and greater ease of use, any loss of jobs caused by the move to cloud computing will be made up by the overall growth the cloud solution will enable resulting in job growth associated with cloud environments and applications. Job titles may be different, but employees needing to overlook cloud solution projects will be far from over.

3. Fear of Data Security. As more and more organizations are choosing to move their ERP systems to the cloud, data security concerns may weigh heavily on their minds. (It Tool Box) Organizations have continued to be cautious about giving up visibility and control, particularly over applications that are more business-critical.

According to Aberdeen Group, A New Approach for Enterprise Application Security, 66% of all enterprise applications are implemented using Cloud Solutions opposed to traditional server implementations. Unless your business has 24 hours, 365 days yearly protection on your infrastructure; Cloud ERP offers support, protection and a peace of mind for your business.

As Cloud computing becomes one of the most riveting technologies to hit the Enterprise industry, this will open the door for misconceptions about the Cloud platform.

Anything new to businesses is always a big unknown. As today’s organizations become more informed of Cloud ERP benefits, more and more will look for ways to take advantage of it across their organizations.

About the Author
Kevin Beasley
As Chief Information Officer, Kevin Beasley provides vision and leadership in technology planning for VAI. Beasley oversees both the corporation’s technology strategy in conjunction with product development and the internal information technology initiatives that support the goals of VAI. With an in-depth working knowledge of enterprise resource planning software development, Beasley is an integral part of VAI’s leadership team.

VAI S2K Enterprise

Article Topics
Trends   Supply Chain   Enterprise Resource Planning   Cloud   ERP   All topics

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