Cost Benefit of Cloud ERP
The first question most people ask when they look to purchase something is what does it cost? Manufacturers have been slow to adopt cloud solutions because they are afraid of the hidden costs, among other things. One other trap they fall into is simply looking at the hard cost and judging their break-even point. There is no dismissing that breaking even on any investment is good business sense, it’s just a limited way of thinking about costs. So, what is the actual cost of Cloud ERP?
Your ERP system is the heart of your technology and when maximized, can offer you unlimited business value. When evaluating the cost of switching to Cloud ERP, there are a list of items you need to consider to get a realistic picture of cost. When I say cost, i don’t just mean in dollars exchanged, but in lost opportunity as well.
- Opportunity cost of Capital
- IT Resources & Priorities
- Capital Expenditures vs. Operating Expenditures
- Accessibility outside the plant
- Installation, Upgrades, and Management
- Securing the system
- High availability is expensive
- Connectivity to emerging platforms and services
If you build a side by side chart with the answers to the above 8 points for on-premise vs. cloud, you will be able to better judge what not moving to cloud ERP can cost your business. The manufacturing industry has made a shift to Cloud ERP in the last several years and the remaining organizations will soon follow. If your business is lagging in making the switch, now is time for you to evaluate what not switching is costing your business. If you need help evaluating the above 8 areas and how they apply to your business, give 2W Tech a call today and let us help you with your evaluation. 2W Tech is a certified Epicor ERP partner, as well as a Tier I Certified Microsoft Cloud partner.
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