What is Cloud ERP Software | Cloud ERP Software | Bluesky Cloud ERP

What is Cloud ERP Software?

Cloud ERP software is a flexible & innovative approach by businesses to utilize Enterprise Resource Planning (ERP) software at its maximum potential. Cloud ERP software allows business to undergo perfect business transformation. Most business owners might be familiar with one or more Cloud ERP software. ERP as we all know is a word which was coined in the early 1960’s. After which many versions of ERP were introduced. The major ERP players in the world include Oracle, IBM, SAP & Microsoft. With the advancement of science & technology, premise ERP or traditional ERP shifted to Cloud ERP. Cloud ERP has since then become one of the pioneer forces in business world.


Cloud ERP software helps management level employees to make better decisions for a business. Cloud ERP could be accessed from any location. Cloud ERP integrates many business functionalities like finance, human resource, inventory, production, sales, purchase, projects & CRM. Cloud ERP holds leading advantage over premise ERP or traditional ERP in terms of upfront investment cost, infrastructure cost & operational cost. Since, Cloud ERP is hosted on the Cloud server it allows for faster accessibility. Cloud ERP is a well suited solution for small, medium & business enterprises. In addition, ERP software’s are now available in Hybrid format (Cloud based + On-Premise) too for businesses.


Moreover, Cloud ERP helps businesses to improve their productivity through growth oriented business process management.


Now let us discuss about some of the benefits of Cloud ERP!


Benefits of Cloud ERP

Cloud ERP allows reducing overall business costs in many ways as it:

  • Reduces upfront costs for ownership, managing, hardware, servers & infrastructure
  • Eliminates the cost of frequent support from business IT professionals, as it is managed directly by the manufacturers of Cloud ERP Software
  • Reduces the cost involved in maintenance as it is managed directly by the vendors of Cloud ERP
  • Has very low customization cost
  • Allows for better risk management & risk mitigation
  • Provides provision for future business expansions
  • Has low data migration cost

Also, Cloud ERP monthly cost comes to just about 20% of the salary of an IT professional required for managing premise ERP software. Furthermore, through survey’s it has been found that Cloud ERP costs up to 50-60% less than premise ERP or traditional ERP for medium & enterprise businesses.

Most noteworthy benefits of Cloud ERP are on the business operational side rather than cost savings:

  • Firstly, Cloud ERP usage allows to only pay for the Cloud computation costs
  • Secondly, Cloud ERP provides complete protection against network attacks as the data are stored on the Cloud server
  • Thirdly, Cloud ERP allows businesses to spend their business operations budget effectively based on their requirement
  • Fourthly, Cloud ERP eliminates the need to install the software on remote locations
  • Fifthly, Cloud ERP allows for better data roll backs & backups
  • Sixthly, Cloud ERP provides faster accessibility for businesses
  • Seventhly, Cloud ERP allows to adjust the storage space as per the business need in a flexible way
  • Eighthly, Cloud ERP deployment speed is also very low

Know more about the benefits of Cloud ERP over Premise ERP by visit our website blog on Cloud ERP vs. Premise ERP.

Cloud ERP importance in Business

Before we begin let me ask you a few questions!

  1. How much of your business operations budget is spent most effectively?
  2. Are you able to manage your business effectively?
  3. Does your current ERP software satisfy your business needs?
  4. Are you looking forward to see how well your business productivity could be enhanced?
  5. Are you in need of a business process management solution?

In general, Cloud ERP provides an overwhelming advantage to businesses through better cloud computing features. Moreover, Cloud ERP could be regarded as an effective way to use cloud computing for business. Cloud computing is more about utilizing a specific product functionality on a licensed basis or a rental basis. Rather than completely buying an ERP as that of a premise ERP. Cloud ERP is based on Software as a Service (SAAS) principle. The fact may be of great surprise to most businesses that Cloud symbol was first utilized in ARPANET in the late 1970’s and then in the 1980’s by CSNET. Later the term “Cloud computing” began to be used with the meaning “distributed computing” in the early 1990’s. The concept became much popular and well said after the introduction of Amazon.com.


Cloud computing derives its features from Services Oriented Architecture (SOA). Services Oriented Architecture (SOA) allows to integrate cloud computing with other functionalities. Cloud ERP software is considered as Software as a Service (SaaS). Software as a Service (SaaS) based Cloud ERP is usually accessed by users through a client with a website browser. Software as a Service (SaaS) based software is not physically distributed & could be deployed almost instantaneously.


Cloud computing shares its features with:

  • Client-Server Model
  • Grid Computing
  • Fog Computing
  • Cloud Sandbox
  • Peer to Peer
  • Utility Computing

Some common misunderstandings and terms related to Cloud ERP

In general, there are many misunderstandings & misconceptions existing among business related to Cloud ERP. Here now we can discuss about some such terms and misunderstandings.


Licensing: Perpetual & Subscription

Perpetual Licensing – It is the process in which the license for the usage of the Cloud ERP software is purchased upfront in the beginning. And the client or customer could use the benefits & functionalities of the Cloud ERP software as long as the license is valid for the user or customer. Also extra charges are to be paid in for up-gradations & maintenances to be made for the Cloud ERP software. It does not involve any annual or monthly license renewal fee.


Subscription Licensing – It is the process in which the client / customer / company pays on a monthly or annual basis for the Cloud ERP software license. This gives client / customer / company with the option to add or remove user in a Cloud ERP based on their business requirement. The provision for up-gradation & maintenances are included in the subscription licensing payment with no extra expense. Subscription licensing is less costly when compared to perpetual licensing model.


Methods of Deployment: On Premises & Cloud Hosed

On Premises – Through On Premises method of deployment, the ERP software is purchased fully by the client / customer / company and is run through the client / customer / company servers at the business office location. The initial investment for On Premises model is quite high as it involves cost of hardware, servers and infrastructure. Also, it requires the need of qualified IT employee to keep the software functional. Moreover, it provides the client / customer / company total control over the security of the data stored in the server through the ERP software.


Cloud Hosted – Cloud Hosted method of deployment, the maintenance cost & infrastructure costs could be considerably reduced by hosting through a cloud based solution provider. Moreover, this method of deployment is a process in which the Cloud ERP software is rented through a cloud based solution provider. This allows the Cloud ERP software to be delivered at the client / customer / company location over the internet. The subscription license of which could be paid on a monthly or annual basis. The cost of Cloud Hosted is comparatively low when compared to On Premises.


Methods of Combination of Licensing & Deployment

Subscription Licensing with Cloud Hosted – Here, the licensing of the Cloud ERP software is on subscription basis and it is also cloud hosted. This method is the fastest, reliable & most utilized method for many businesses around the Globe. The method is similar to that of Software as a Service (SaaS), as the client / customer / company need only pay for the monthly or annual subscriptions of the cloud based Cloud ERP access as well as for the servers. Maintenance & up-gradations of the Cloud ERP is carried out by the Cloud ERP vendors from their business location.


Perpetual Licensing with Cloud Hosted – The licensing of the Cloud ERP software is implemented here on perpetual basis (purchased upfront) and it is also cloud hosted. This option allows client / customer / company to have complete license ownership of the Cloud ERP software. It is a method suited to combine the best from Subscription Licensing with Cloud Hosted & Perpetual Licensing with Cloud Hosted. It eliminates the need for monthly or annual license renewal. Also, it gives allows client / customer / company with the provision to manage their own maintenance & up-gradations. Here, the maintenance & up-gradations could also be outsourced to a Cloud ERP vendor too. Perpetual Licensing with Cloud Hosted model is followed by those client / customer / company who wish to migrate to the Cloud.


Perpetual Licensing with On Premises – Here, the license is purchased upfront while the ERP is deployed on premises. This gives client / customer / company complete control over the data security and its access. This method is well applicable for client / customer / company who follow strict security standards. Also client / customer / company who follow Perpetual Licensing with On Premises involve complicated ERP customizations that are not applicable through the cloud.


Applicable Cloud Models for Cloud ERP: Private Cloud, Public Cloud & Hybrid Cloud

Private Cloud – This model of Cloud hosting allows client / customer / company to store the Cloud ERP data’s & information’s at the cloud location specifically dedicated for their business. This provides the best security and data accessibility over the Cloud. It is most suited option for client / customer / company who prefers better security & risk management for their business.


Public Cloud – Here the Cloud ERP data could be accessed by client / customer / company through the cloud server shared across a wide number of users. This model of Cloud hosting allows client / customer / company to store the Cloud ERP data’s & information’s at the cloud location partitioned for their business to access. They are suited for companies who follow comparatively simple security & compliances.


Hybrid Cloud – This model is a perfect combination of On Premises, Private Cloud as well as Third party, Public Cloud based services.


Tenancy Models of Cloud ERP: Multi Tenancy & Single Tenancy

Multi Tenancy – Here, the Cloud ERP Software vendor has a common version of Cloud ERP on the server which is used by multiple clients / customers / company’s at a time.

Benefits of Multi Tenancy include:

  • It reduces the overall cost of the Cloud ERP software provider
  • Better cost savings from hardware, servers, databases, infrastructure & operating systems
  • Less sophistication

Single Tenancy – Here, each client / customer / company have their own Cloud ERP software version as well as separate databases for each business.

Benefits of Single Tenancy include:

  • It provides better flexibility
  • Better up-gradation & maintenance
  • Better customization of Cloud ERP modules

Note: Bluesky Cloud ERP can run either as Single-Tenant or Multi-Tenant, On Premises or Cloud Hosted & it could be licensed by either Perpetual Licensing or Subscription Licensing

Look out for the right Cloud ERP?

Mostly, businesses look forward to get expertise from famous & well known Cloud ERP software Mega vendors. Medium & business enterprises have become more and more concerned about the safety of their business data’s & information’s. Some of the common terms included in finding the right Cloud ERP are Cloud Wash & Cloud Faux.


Cloud washing is the process in which a Cloud ERP vendor or provider purposeful or deceitful attempt to promote or rebrand an older version of the Cloud ERP software by including a word Cloud with its naming.


When choosing Cloud ERP software it should be noted that it is web based & should be a genuine Cloud ERP.


Be well aware to differentiate between genuine cloud & faux cloud based Cloud ERP!


A genuine Cloud ERP provides complete responsiveness in mobile & Web devices. Genuine Cloud ERP doesn’t have any intermediate servers and acts like a web browser. Genuine Cloud ERP allows complete flow of information’s throughout the database. Genuine Cloud ERP team supports and maintains business data on a 24*7 basis. They are built with multiple layers of security to support both single-tenant & multi-tenant business cloud environments. They also provide the feature for easy up-gradation.


Also, Genuine Cloud ERP provides seamless integration with other cloud based systems. It also provides the feature of easy customization. Genuine Cloud ERP is fast & flexible which enables you to work efficiently in a business environment. It also provides better coordination with business team members. Moreover, easy access of information’s on the web as well as on other digital devices. Better usability for the money you pay.


Fake Cloud ERP or Faux Cloud is like a virus in the business environment!


Fake Cloud ERP software’s does not support multi-tenant Cloud ERP models. The cost of ownership & licensing cost involved for genuine Cloud ERP software is comparatively low to that of fake Cloud ERP software’s. Moreover, fake Cloud ERP software requires the need of more resources.


Never get fooled by Fake Cloud ERP software’s!

Benefits of Bluesky Cloud ERP

Bluesky Cloud ERP is a reliable & cost-effective solution for small, medium & business enterprises all over the world.

It is designed in a way to suite all the needs & requirements of business.


Some of the major advantages of Bluesky Cloud ERP over existing Cloud ERP software’s are:


To know how Bluesky Cloud ERP could benefit your business get in touch with our team at the earliest.

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