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Why Hosted ERP is a Good Idea

Any mention of “hosted ERP” is enough to make enterprises uncomfortable. They reason that ERP data is the most sensitive and precious of their commodities, and so cannot be entrusted to a third party, no matter how creditworthy. While the argument is sound, there are very good reasons for giving a thought to hosted ERP, which is already gaining popularity among businesses.

Why Hosted ERP is a Good Idea

Here’s what you gain by adoption a hosted ERP model:

  • Low investment: Setting up an enterprise-class ERP system is a challenge in itself. The initial costs associated with real estate, hardware, software and operations are considerable, and simply out of reach for many small enterprises. By contrast, a hosted ERP solution is up and running in no time.
  • Easy maintenance: If the ERP solution were on-premise, you would need a team of trained professional ready round-the-clock. Moreover, any upgrades will require a considerable expense of time and money, both for software as well as hardware. This is not so with hosted ERP, where all the maintenance lies with the solution provider.
  • Better integration: Because of its modular nature, hosted ERP tends to be more flexible than on-premise ERP. This has a direct bearing on system integration, which is easier and faster in the case of hosted ERP.
  • Increased ROI: Hosted ERP solutions can be up and running in a much shorter time than traditional systems. This means businesses start realizing their returns sooner, which is a key consideration for small- and medium-sized businesses.

A final word about security. Just as cloud computing has demonstrated, a hosted solution is as good as an on-premise one when it comes to data security. All it calls for is a little research in finding the right vendor.