What is Cloud ERP?

Today's enterprise resource planning (ERP) solutions integrate and streamline essential financial and operational business processes and provide a single access point for data insights from multiple sources. They also offer integrated applications for inventory, order, sales, procurement, manufacturing, delivery, and fulfillment. Companies may also opt to add human resource management (HRM) and customer relationship management (CRM) capabilities.

There are two primary types of ERP deployments:

  • On-premises ERP is installed on private server hardware and run under an operating system (OS) designed specifically for running ERP applications.
  • Cloud ERP is an ERP application that is hosted on public clouds and accessed via web browsers.

Cloud ERP deployments offer several benefits for businesses, including lower costs, greater flexibility, and faster time to value.

A traditional on-premise ERP system is an application that runs on a computer server, which employees’ access through a desktop client program. With a traditional ERP system, employees use a desktop client program to connect to the server and perform their daily tasks.

A cloud implementation can be either single-tenancy or multi-tenancy. In a single-tenancy mode, a company has an on-premises server hosting the application. It gives them greater control over customizations and upgrades, but they're responsible for setting up and maintaining the servers. On the other hand, multi-tenancy means that multiple companies share one set of instances, which reduces costs by sharing resources.