Drive Growth by Switching to the Cloud ERP Solution From Microsoft Dynamics GP

Business landscapes are changing faster than ever, and competitive pressures are greater than ever. To keep pace in this dynamic environment and to lay the foundation for growth, firms are realizing that their historical processes and on-premise ERP systems are not adequate. They need to modernize their IT infrastructure with cloud ERP solutions in order to provide the visibility and scalability for growth

Agile, cloud ERP systems enable businesses to respond to market dynamics through rapid scalability, access for distributed workforces, and real-time visibility into the organization from anywhere. They provide a full view of the customer, allowing for real-time information to support intelligent decision making. Since cloud infrastructures flex with growth, the IT team is freed from the complex integrations and upgrades that can prevent businesses from outrunning the competition.

Why Organizations Are Moving to Cloud ERP Systems

For most organizations, the on-premise ERP systems of the past don’t meet the business needs of the present and future – speed, visibility, and scalability. The cloud has become the de-facto standard for modern businesses — and for businesses of all sizes, the cloud represents a tremendous opportunity, which is becoming a necessity.

Industry Search and Analysis Suggests:

• IDC estimates the cloud has grown four times faster than the IT market.
• Through 2022, Gartner projects the market size and growth of the cloud services industry nearly three times the growth of overall IT Services
• Forrester found that over 50% of companies plan to increase their cloud spend over the coming years.
• In the Future of Cloud Computing Survey, 92% of respondents said cloud initiatives were a priority for their organization over the next 18 months.

On-premise ERP Systems Are Costly Compared to Cloud ERP Software

One reason for the growing popularity of cloud ERP solutions is their cost compared to on-premise systems. For on-premise tools:

• High implementation costs mean it takes longer to realize the ROI. Forrester analyzed the hidden costs of on-premise ERP systems and concluded that implementation costs could be as much as five times the cost of software licenses. Hardware, middleware, database licenses, and implementation fees cause significant expenditures.
• On-premise ERP systems hinder the finance function. The Aberdeen Group reports that two-thirds of organizations are running old versions of financials, due to the daunting and expensive task of upgrading on-premise systems. In most cases, companies are four to five versions behind. Many organizations are using on-premise ERP solutions designed for business requirements of a decade ago.
• High maintenance costs mean innovation falls by the wayside. According to Gartner, 91% of budgets allocated to on-premise ERP systems are spent on maintenance and administration; only 9% is spent on innovation.

Traditional ERP Systems Deliver Disruption Rather than Efficiency

Traditional ERP systems like Great Plains are just one part of an organization’s business system. Companies usually deploy other systems to automate support, sales, warehousing, e-commerce, professional services, and other functions. With different processes running on many different systems, it is difficult or impossible to:

• Obtain a clear picture of bookings, billings, and backlogs
• Decrease spreadsheet-based accounting
• Scale up to support growth
• Provide visibility to everyone in the organization
• Reconcile different versions of data
• Integrate front- and back-office processes

Separate applications for each silo in the organization creates disruption. Multiple point solutions create a “legacy applications hairball” that is burdened with manual tasks and bottlenecks. Over time this infrastructure translates into more money, more resources, and more integrations.

Reasons to Move From On-Premise to Cloud ERP Solutions

There are many compelling reasons why companies upgrade from older on-premise applications like Great Plains to modern cloud ERP software solutions, such as Microsoft Dynamics 365 or NetSuite. These include:

1. Reduced IT infrastructure investment and lower total cost of ownership. Compared to on-premise systems, cloud-based ERP systems cost much less. Organizations simply access cloud systems via an Internet connection. The cloud provider hosts and maintains the IT infrastructure ensures that the system is always up and running, maintains system security, and rolls out product enhancements seamlessly without breaking customer customizations. Cloud ERP systems also offer a predictable pay-as-you-go subscription model that makes cash flow planning much easier.
2. Increased business agility. Cloud ERP solutions take maintenance and upgrade concerns off the table. Companies can focus on their core competencies and on running the businesses.
3. Reduced spreadsheet-based accounting. When organizations have multiple on-premise systems, separate islands of data result. To bridge the gaps, employees often use “spreadsheet-based accounting.” An integrated, cloud-based suite eliminates the need for this type of workaround.
4. Integration of front- and back-office results in reconciliations of data across the organization. When business data is spread across different ERP systems, the organization lacks real-time visibility into the key metrics needed to optimize business operations. This problem can be solved with a cloud platform.
5. Better real-time financial and operational visibility, including multi-subsidiary management. Consolidating multi-subsidiary and multi-national financials with Great Plains is time-consuming and expensive. Organizations must either conduct the exercise across a multitude of spreadsheets or invest in separate Great Plains accounts for every subsidiary and international division and in additional external reporting tools.

In contrast, a modern cloud ERP management system like NetSuite helps a company unify their business processes, departments, and divisions. Every application uses the same data repository, so all users have access to the same information. Additional NetSuite benefits include:

• A true cloud solution. Many ERP software vendors run old, on-premise software in a data center and call it cloud-based. In contrast, NetSuite was built from the ground up as a multi-tenant, true cloud ERP solution.
• Self-service and mobility. The workforce today is much different from 10 years ago. NetSuite provides real-time access to information anywhere and anytime, including access to data and dashboards in a self-service way from mobile devices.
• Global deployment. NetSuite enables global organizations to manage multiple subsidiaries, business units, and legal entities. It seamlessly handles different currencies, taxation rules, and report requirements from a single platform.
• Easy, predictable upgrades and lower cost of ownership. With NetSuite, organizations are no longer version locked. Since NetSuite hosts its own applications, upgrades are managed seamlessly without breaking customers’ customizations and third-party integrations. Organizations no longer have to worry about the maintenance of their IT infrastructure.

Next Steps: Cloud ERP Implementation

With traditional on-premise ERP systems, IT teams get bogged down with integrations, maintenance, and upgrades, rather than focusing on the strategic needs of the business.

Organizations that want to be more nimble in the face of market changes, and that want to grow and expand, need a more modernized IT infrastructure. Cloud-based ERP systems like Microsoft Dynamics 365 and Oracle-NetSuite are the answer. These robust, reliable, cost-effective solutions help enable and accelerate the growth of businesses.