What is Cloud-Based ERP?
Cloud-based ERP is an enterprise resource planning system that uses a network of remote servers (referred to as “the cloud”), instead of on-premise servers, to store company data and run its enterprise system. Implementing cloud-based ERP software does not require the purchase of hardware, and the system is hosted off-site by a vendor.
How is data stored in the cloud?
Data used by a company’s ERP system is hosted on off-premise servers and delivered through the internet. However, how data is stored differs. There are three types of data storage:
- Public – servers owned and maintained by a third-party that stores data of multiple organizations in a single location
- Private – an autonomous storage environment controlled only by the data owner’s organization
- Hybrid – a combination of public and private
How do you keep data secure?
Cloud-based ERP systems typically utilize a multilayer approach to security. Additionally, security updates can be distributed routinely due to the cloud’s remote nature. Some best practices for keeping data secure in a cloud-based ERP system are:
- Segment responsibilities
- Secure the system
- Have a security plan
- Update regularly