ERP & Business Automation

Reasons Cloud-Based ERP Systems Are Successful

BY FirstBit | Published 11 October 2022 | Updated 24 October 2022

Is ERP a guaranteed success in cloud-based systems? The answer is a resounding Yes!

A cloud-based ERP solution is a cost-effective, easy-to-deploy, and scalable application. According to Medium, 53.1% of businesses either use ERP cloud software or plan to soon. 

And why not? Accessing companies' critical data from anywhere is convenient and beneficial for employees and allows them to do their jobs more efficiently. It also increases transparency across the organization and improves accountability. Plus, you get additional support from cloud-ERP vendors who ensure the application runs smoothly 24/7. 

But that’s not it. There are even more reasons companies choose to go with cloud ERP systems. 

Cloud-Based ERP Benefits

Reasons Cloud-Based ERP Systems Are Successful

Cloud ERP has several advantages over traditional on-premise software, including lower costs, better customization, increased scalability, and enhanced project management solutions. However, these benefits depend on ERP implementation success factors

1 - Rapid Updates and Upgrades

Updating your software is a serious (sometimes complicated) task. There are many types of updates, and for each type, you need to be sure that the update won't cause problems to your system or data.

Cloud-based ERP systems eliminate this headache because the vendor handles updates, upgrades, and maintenance. You also won’t have to worry about installing security patches. Instead, cloud providers will automatically install new patches to keep your system safe and secure. 

2 - Scalability and Flexibility

Cloud-based ERP solutions can accommodate growth by providing the right features at each stage in your business lifecycle. This means there are no limits on how many users can access the system or how much data it can store, so it will continue working well as your company grows. And you will pay only for what you use. 

Also, cloud-based ERP systems are available on any device so that you can access your system from anywhere. As a result, your employees and channel partners don't have to stick to their desks or laptop to complete their work. Instead, they can log in from anywhere, run reports, add data, and get access to real-time data.

3 - Lower Operational Costs

You can divide ERP costs into two parts: upfront costs and long-term costs. Cloud-based systems help reduce expenses on both legs. 

  • Lower upfront costs: Cloud-based ERP doesn't require upfront costs like hardware or software licenses. You only pay for the number of seats you need. Also, they’re easier to implement than traditional systems.

  • Lower long-term costs: Cloud computing eliminates ongoing maintenance fees because all updates and upgrades occur automatically in the background without any intervention. This means fewer IT staff members and less time to maintain your system.

4 - Improved Project Management

cloud ERP systems

The project management module in ERP software provides a centralized system for managing your project's resources, tasks, and activities.

It helps plan, monitor, and control projects at all stages of development. You can manage different resources and equipment required for each project and track how much money has been spent on which task. But there’s more to it.

Here’s everything you can expect in the project management module in the ERP system. 

  • Client information tracking

  • Resource allocation

  • Cost estimates

  • Project cash flow analysis

  • Time and billing

  • Transactions

5 - Better Data Security

Cloud providers have more sophisticated systems to monitor and encrypt all data transfers. This can help prevent hackers from gaining access to your corporate information, which can be important if you handle sensitive information, such as financial or customer records. 

Besides, cloud providers have better access to the latest data security technologies because of the risk involved. They know what works and what doesn't work for keeping your data secure from threats like ransomware attacks or phishing scams.

Cloud ERP for Different Industries

While enterprise resource planning software is helpful in every field; it plays a critical role in the construction, retail, and manufacturing industries. 

Let’s understand the key use cases of cloud-based ERP in different industries. 


The construction industry depends on the weather, which can be unpredictable if you’re in Dubai. In addition, the industry also faces risks of labor and material shortages, loss of revenue due to delays, and cost overruns.

Therefore, construction companies need robust software that helps them manage these risks effectively and get a higher return on investment. And here’s how a cloud ERP fits the picture perfectly. 

  • Real-Time Data: As mentioned above, cloud-based ERP software allows employees to access data anytime. Besides, they provide real-time, accurate data so contractors and managers in the field can make more informed decisions. 

  • Supply Chain Management: Construction companies can use ERP to track their raw materials, orders, and inventory from one place. You can also get live consolidated reports to stay atop your stocks. 

  • Finances and Accounting: With a cloud-based ERP, you can analyze your gross profit in real-time, control receivables and payables, and forecast your cash assets to prevent cost overruns. 

  • Better collaboration between teams: Cloud ERP solutions allow employees from different departments to collaborate easily on projects and tasks, improving efficiency and productivity.


is ERP a guaranteed success in cloud based systems

Retail is a highly dynamic industry, and retailers must keep up with the rising customer expectations and competition to generate enough revenue. That's why it's essential to have a retail ERP that helps you manage inventory, sales, and customer data while providing in-depth analytics.

  • Multi-store Management: Cloud-based ERP helps manage multiple stores and supply chains across locations from anywhere. For instance, if you have many stores in the UAE and sell products online, an ERP system can help manage all the stores, including the online one, from one place.

  • Omnichannel Experience: Traditional systems require you to update information manually or create new workflows for each platform. However, with cloud-based ERP, you can easily provide a consistent experience across all platforms, from traditional retail locations to online stores and mobile apps.

  • Data Analytics and Reporting: ERP software tracks sales activity and provides insights into customer behavior (by integrating data from different channels) so you can make informed decisions and streamline your operations. ERP with BI capabilities can also analyze collected data and provide in-depth, actionable insights.


The manufacturing industry has always been a key driver of economic growth in any country. Therefore, the industry requires highly sophisticated technology tools to manage its operations and achieve efficiency. 

Here’s how cloud-ERP can help manufacturing companies. 

  • Supply Chain Management: Cloud-based ERP software offers accurate visibility into the entire supply chain so companies can make real-time decisions. They can better determine where to source supplies, what products to manufacture, and how much inventory is needed for each process.

  • Automate Tedious Processes: Cloud-based ERP software automates time-consuming tasks such as data entry, accounting, and billing, enabling companies to save money and improve efficiency. 

  • Reduce Interruptions: Cloud-based ERP allows you to monitor equipment in real-time and predict maintenance requirements, minimizing downtime. 


Cloud ERP has opened up new possibilities for companies to improve their productivity. No longer will they have to waste time and money trying to maintain on-site servers or keep up with expensive internal IT departments. They can also use the software to automate tedious tasks and generate accurate reports. 

And since the vendor takes care of the deployment process and helps with customization, your ERP system will be implemented much faster and more cost-effectively.

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