Cloud ERP Doesn’t Break the Bank

By - June 11, 2013

Even with the improvement in the economy, many companies are still very cost-conscious so adding a new technology like cloud ERP comes with greater scrutiny.  Thankfully the market adoption that Cloud will save money is an idea in both the short and long runs.

In an article written by NetSuite, Why businesses run better with NetSuite,  there is some interesting discussion on how cloud computing is able to reduce the upfront cost and overall long-term cost of ERP solutions.   As we all know, ERP implementations can take 6-12-18 months to get up and running. However the cloud is proving that the implementations can be much less disruptive to the organization and very cost beneficial to the bottom line. In fact, our average implementation take between 6-8 weeks.

The picture below illustrate how the costs of an ERP solution over this four-year period favors the cloud solution.

7-20-2011 Automating Finance-Goguen

Although the application cost (i.e. subscriptions) are higher over these four years for Cloud, the amount of consulting and training during the initial phases to get up and running is much less than the on-premise solution.  In addition, three years into the new cloud ERP system, you won’t be staring down a complex and expensive upgrade to get that needed new functionality.  In a cloud deployment, new functionality is automatically upgraded either quarterly or twice a year.

If you are evaluating a new ERP system, RSM can help you with a cloud ERP solution like NetSuite.  We also are aligned with other ERP vendors and can offer you an objective assessment of your needs.  Our Rapid Assessment® tool will help you in indentifying what technologies will improve your business processes.  For more information, contact our professionals at 855.437.7202 or by email at erp@mcgladrey.com.

By: Chris Goguen – Massachusetts NetSuite Solution Provider

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