Cloud ERP: How Cloud Computing Helps Reduce Infrastructure Costs

The market has been undergoing a series of transformations when it comes to hosting methods for the main systems used in companies’ operations. But do you know the real importance of choosing where to host your ERP? One option is to place your ERP in the cloud .

By collecting vast amounts and types of internal data, enforcing business processes and controls, and supporting internal controls at a higher level of capability than ever before, ERP systems are changing the nature of business. However, the internal infrastructure required to support the system often generates high operating costs.

If your goal is to change this reality, reducing your infrastructure costs , see here the details of how taking ERP to the cloud can generate this result , in addition to improving productivity in the IT and business team.

Impacts of infrastructure on ERP

The internal IT infrastructure to maintain the ERP is based on the hardware and software needed to operate the system. There are also intangible resources that are needed, such as processes, practices and integrated controls.

In short, there is a constant demand for these elements when we think about this infrastructure:

  • Hardware capabilities : this is what guarantees sufficient processing capacity and storage for the ERP;
  • Required software : operating system, browser connection levels, among others;
  • Software conflicts : identify possible software incompatibilities;
  • Virus protection : devices must be adequately protected against virus attacks, using specific systems for this purpose;
  • Access control : For security reasons, the device must have access control and automatically restrict usage when it reaches the inactivity timeout.

Do you realize that implementing all these elements has a high impact on any operation? In addition to the financial costs , it is necessary to spend time and teams to maintain this entire complex infrastructure.

For many companies, this seemed to be the only option. After all, organizational infrastructure plays an essential role, as it supports the maintenance of the ERP.

But to maintain the management of your business transactions, organizational structure, automation, workflow and reporting, all of which are considered the backbone of today’s IT infrastructure, you can migrate to cloud ERP. Your company will immediately see positive impacts:

  • Achieving true IT agility ;
  • Allowing flexibility in the development of IT infrastructure;
  • Making management simpler on the business side;
  • Providing scalability and elasticity.

Cost reduction with cloud ERP

Everything we saw in the infrastructure part, with the migration of ERP to the cloud, can be translated into cost reduction . That entire internal layer can be replaced by an online service that will support all ERP needs .

The 3 main differences that impact cost reduction provided by the cloud are:

  • Reduction in the level of productivity lost when there is downtime;
  • IT team becoming more efficient, without worrying about infrastructure;
  • Maximum use of machines, without costs for idle servers or maintenance.

According to research by Dow , conducted together with AWS to bring the impact of this organizational transformation and to generate business value, the main average annual benefits of the cloud per organization are:

• 47% more business productivity : Organizations leverage greater agility and performance with the use of cloud infrastructure. Companies can identify and address business opportunities as they arise with this shift. Meanwhile, employees already benefit from the speed with which new functionalities are made available;

• 32% more IT team productivity : Support teams can focus on other IT initiatives and business-focused projects. Additionally, development teams benefit from simplified and unified cloud environments. The result is more agile development that enables more features to be delivered in less time, thereby increasing the value and productivity of development teams;

• 13% risk mitigation : Organizations reduce disruptions that impact the business by limiting the frequency with which employees are unable to access the applications they need to perform their work. This impacts revenue because business operations are not interrupted;

• 8% reduction in infrastructure costs : Organizations avoid upfront costs to purchase and deploy server, storage and networking infrastructure. Additionally, they reduce ongoing costs associated with running IT environments, including licensing, power and facilities costs.

Organizations that embrace this shift leverage more cost-effective, efficient, reliable, and agile IT operations to drive improved business outcomes and work with greater operational efficiency in their system usage.

Deixe um comentário

O seu endereço de email não será publicado. Campos obrigatórios marcados com *