DotOne teamWhat is cloud ERP?
A cloud ERP is enterprise resource planning software delivered over the internet. The vendor hosts the application and database, handles updates, backups and security, and you pay a subscription. Your team logs in from the office, the plant, a warehouse or a phone.
It covers the same ground as any ERP: sales, purchase, inventory, production, quality, HR, payroll and accounts on one set of data. See what is ERP for the basics.
ERP vs cloud ERP: cloud vs on-premise compared
| Cloud ERP | On-premise ERP | |
|---|---|---|
| Where it runs | Vendor's servers | Your own server room |
| Upfront cost | Low: subscription, no server | High: licences, server, setup |
| Ongoing cost | Predictable monthly or yearly fee | IT staff, power, hardware refresh, AMC |
| Updates | Applied by the vendor | Planned and installed by your team |
| Access | Any location, browser and mobile | Office network, or VPN for remote access |
| Backups and uptime | Vendor's responsibility | Your responsibility |
| Customisation | Configuration within the product | Deeper code changes possible, but harder to upgrade |
What is SaaS ERP?
SaaS ERP (software as a service) is the most common form of cloud ERP. One version of the software runs for every customer, each with their own secure data, and you pay a subscription instead of buying a licence. The vendor updates it for everyone, so you always have the latest version, including statutory changes such as GST and payroll rules.
Some vendors also offer hosted ERP, where a traditional on-premise product runs on a server in a data centre. It is in the cloud, but you still deal with upgrades and maintenance yourself, so it behaves more like on-premise ERP.
Benefits of cloud ERP for growing businesses
- Faster start. No server to buy or set up, so go-live depends on your data and processes, not on hardware.
- Every site on one system. Plants, depots, branches and field staff see the same live data.
- Mobile by default. Approvals, stock checks, attendance and field visits from a phone.
- Always on the latest version, including new GST and statutory changes.
- Cost that grows with you, by users or modules, instead of a big upfront licence.
Is cloud ERP secure? Questions to ask
A well-run cloud ERP is usually more secure than a server in a back office with no dedicated IT team. Ask the vendor:
- Is data encrypted in transit and at rest?
- Is there role-based access, so each user sees only what they need?
- Is there an audit trail of who changed what?
- Is multi-factor authentication available?
- How often is data backed up, and how fast can it be restored?
- Can you export your data if you leave?
How to move to cloud ERP
- List the processes you want in the ERP first: usually sales, purchase, inventory and production.
- Clean your masters before loading them: items, customers, vendors, BOMs. See master data management.
- Decide what stays in Tally. Many Indian businesses keep books in Tally and connect the ERP to it.
- Go live in phases, one department or site at a time, with a clear cut-over date for opening stock.
- Train by role, on the screens each person will actually use.
DotOne is a cloud ERP system for Indian manufacturers and distributors, with mobile apps, role-based access, audit trails and a two-way Tally connector. See security for how data is protected.