Adopting Cloud ERP in Small and Medium Enterprises: Benefits and Challenges

Abstract

As wide-ranging of IT services transfer to online services in the cloud, progressively many IT managers are thinking whether to move their enterprise resource planning (ERP) systems there also. Small to Medium Enterprises of India are one of the most hostile implementers of ERP solutions. Most of the SMEs have implemented the traditional ERP Systems and have incurred a heavy cost while adopting these systems. Even though some SMEs have prospered in shifting a portion of their unconventional ERP services, for example human resources systems, into the cloud, many organizations keep on vague of undertaking the same with core supply chain and financial operations. There are a many aspects that organizations should consider in determining whether and how to use cloud-based services for their ERP systems. Industry type, company size, solution complexity, security needs, and several other organizational issues must all be addressed. In this Perspective, this paper presents the various cloud deployment and delivery models, ERP deployment models, benefits of implementing a Cloud ERP solution from scratch or a migration from an existing in-house solution to a cloud version, and challenges of moving ERP services to the cloud.