Total Cost of Ownership (TCO)
Is migrating our “on prem” ERP solution to the Cloud the right thing for your company? If your company has not yet transitioned your “on prem” ERP solution to the Cloud, chances are, you are (or shortly will be) evaluating if this is a good strategic and economic investment to plan for next year.
Evaluating if indeed, migrating your ERP to the Cloud is the right economical choice for your business is certainly at the core of all discussions. To help you visualize all components to take into consideration, Microsoft has put together information to evaluate the Total Cost of Ownership for both, on premise and Cloud ERP solutions.
The future of SMEs depends on their ability to transform rapidly through the Cloud
A large majority of companies already have access to a front-office web suite (Microsoft Office 365, G Suite, …) and that is why collaboration tools like Teams, Zoom, … have allowed companies to keep business relationships at bay during the pandemic. However, to revive their growth, companies will need to modernize theirs back office applications (operations) in order to become more flexible and better integrated with their customers, suppliers and employees.
SMEs need to quickly implement a digital strategy with clear objectives to identify the key technology enablers they need for their digital transformation projects.
You can read our article to learn more about the future of SMEs – here
5 Reasons to Move to the Cloud.
1. Improved IT Resourcing
Cloud technologies allow businesses assign resources on demand without having to investing in hardware and software. Exactly as we would utilize resources over the internet, with the Cloud, we can increase or decrease these resources allocations according to business’s evolving needs. In addition to resource scalability, Cloud computing offers applications to rapidly be developed and deployed.
2. Scalability and Agility
A pivotal benefit to Cloud computing is its flexibility and scalability to rapidly allow development and deployment of applications that are easily scalable.
3. Cost Effectiveness
With our first reason to move to the Cloud is dealing with accelerating the speed to assign resources, development, and deployment, it is fair to state that lower investments are required with Cloud solutions versus traditional on prem hardware solutions. In addition to this, we need to factor in lower energy costs. When transitioning to the Cloud you cut down on having to pay to power on-premise servers or their maintenance.
4. Operational Effectiveness
Cloud applications allow for improved operational effectiveness as they seamlessly integrate with a profusion of systems and on prem-based solutions. These integrations allow businesses to upgrade their sales and operational tools and allow for all users to immediately access new solution versions.
5. Risk Management & Manageable IT Infrastructures
Traditional IT infrastructures require experienced and skilled IT professionals to maintain and upgrade their systems. Cloud migration helps to run applications and solutions in an environment that can be maintained by Cloud service providers.
Having all your data on the Cloud increases data security along with allowing a robust cost-efficient disaster recovery plans to be implemented to ensure business continuity in the event.