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Cloud ERP


Cloud ERP is a type of enterprise resource planning software that is hosted on a third-party cloud computing platform, rather than on premises within an enterprise's own data center. ERP is an industry term for the back-end activities that help an enterprise manage different parts of its business.

ERP software helps managers meet purchasing, inventory management and customer relationship management (CRM) requirements and often includes modules for finance and human capital management. Unlike an on-premises ERP system, cloud ERP is delivered through a software-as-a-service (SaaS) business model and enterprises pay only for the resources they use instead of a fixed price upfront.

Cloud ERP provides many benefits, but it can also create some management challenges. Administrators lose a certain amount of control over customization and integration because the provider takes on most of the responsibilities, including security. Admins must pay special attention to data residency requirements and follow standards and regulations to remain compliant because information can reside in multiple data centers across different geographical regions. Another concern is vendor lock-in. Should the organization need to change providers, the challenges of moving data from one platform to another can be just as challenging in the cloud as they are on-premises.

Cloud ERP software is primarily used by small- and medium-sized businesses and is a good fit for startup organizations and new business divisions within an existing company. Some cloud-based ERP vendor options include Acumeatica, Deltek, Epicor, Oracle, Microsoft Dynamics, Rootstock Software, Sage and SAP.

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