ROI of Moving ERP to the Cloud

The Future is Cloud ERP

Making the switch to a Cloud based ERP system may seem like a daunting task. In the long run though, it will save your company time, money, and resources. Moving ERP to the cloud allows for enhanced reporting and business intelligence, giving you better visibility into business performance. This increased visibility allows for better decision making. Cloud based ERP software allows you to focus on your business, not on IT burdens, and lowers your maintenance fees. No more paying to own, maintain, or upgrade with Cloud ERP.

Barriers to Change: The Future of Cloud ERP

Barriers to moving ERP to the cloud should be faced head on and strategically understood to have a successful ERP implementation and seamless switch.

The top five barriers that hold most organizations back from a much-needed ERP replacement are:

  • The cost to move to a new system
  • Re-training across the organization
  • Concerns about cloud security and availability
  • Loss of productivity during a project
  • The overall pain of implementation


Tasked with managing, streamlining, and improving business processes, ERP plays a crucial role in the operations of most organizations. Like anything else, these systems have shelf lives. You will likely start seeing signs that it’s time to replace your current ERP solution with a new platform that’s designed to meet the challenges of today’s business world.

Key signs it’s time to start thinking about moving ERP to the Cloud:

  • You are running an outdated system
  • You are incurring high maintenance fees each year and the value no longer is justified
  • You are no longer receiving help desk support
  • You have limited visibility into business performance
  • You are running an overcomplicated software license

ROI of Moving ERP to the Cloud

There are many factors to consider when determining and understanding your ROI when moving ERP to the cloud. In basic terms, you need to determine the amount of monetary gain your company will realize divided by the amount you spend on the ERP implementation. On average, our clients have saved up to 40% over five years when switching to a Cloud based ERP system.

When transitioning to the cloud there is a major cost reduction in terms of licensing and maintenance fees. You will no longer be paying to own and maintain an operating system. It is also important to understand the costs associated with your current on-premise hardware upgrades (such as JD Edwards software for example). In order to be running an upgraded, on-premise operating system you would need to hire a consulting company to do a large amount of the enhancements. Implementing a Cloud ERP system cuts this expense substantially as upgrades are implemented regularly.

It is also important to take resources into consideration. Upgrades and maintenance with an on-premise ERP system will need to include support and IT personnel from a consulting company, as well as internal staff.

Determining Benefits for ROI

When calculating the ROI of moving ERP to the cloud, there are also intangible benefits to consider. Although intangible benefits are harder to measure, both tangible and intangible benefits affect your ROI.

These benefits include things such as added efficiencies and automation in all business processes. Automation and efficiency help to reduce errors and increases productivity. The most important benefits of a Cloud ERP system are better reporting. Reporting dashboards are easier to manipulate internally.

Many intangible benefits are the secondary effects of tangible benefits. Real-time data visibility can result in faster and more accurate accounting practices because your finance department can access and leverage business data quickly.

ROI Summary

Moving ERP to the Cloud allows organizations to eliminate on-premises equipment and reduce IT resources. This in turn significantly reduces operational costs. No need to maintain equipment or manage system updates.

A Cloud based ERP solution is available to users no matter where they may be in the world. All that is needed is an internet connection. Users have access to all company information via their mobile device or computer.

The benefits of Cloud ERP systems allow for cross-departmental visibility to customer data. Increased visibility then leads to better collaboration throughout departments and provides experiences tailored for each customer.

Lastly, reporting is made easy with a Cloud ERP system. Anyone on the team can easily output a custom report that includes data specific to them. Make better business decisions with extensive, data-driven reporting.

Cloud ERP software implementations and switches can be complex projects. Ensuring that the project is successful and will reduce costs is key in making a case in moving ERP to the Cloud. The future of Cloud ERP is bright and will end up saving your company money in the long run.