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Reasons why a Cloud ERP is a perfect choice for Start-Ups


We’ve said it many times before – investing in an ERP software is essential for your business. Unfortunately, finding the perfect software for your business can be an intimidating process, especially for start-ups. From selecting the right software, acquiring the necessary hardware infrastructure, implementation and training, this tends to be an expensive feat. To the rescue are cloud ERPs. Once only affordable by big well-established companies, they are now affordable and accessible to start-ups and small businesses at minimal cost.

Here are 5 reasons why cloud ERPs are perfect for start-ups

1: Minimum Implementation Costs

Implementation costs tend to make up an essential portion of the software purchase, as a result is a huge initial investment. Although each implementation will fluctuate, most comprise of 4 components: the installation, system configuration, data migration, and employee training. Within these components, data migration prices are among the highest due to difficult data formatting and the transfer of several years’ worth of data from one system to another. Thus, as a new business, this is often minimal, if at all.

2: No Infrastructure Costs or Maintenance

When purchasing a cloud based ERP system, you are most likely purchasing it as a service. In other words, you will not be responsible for hosting the software on your server. The vendor takes on that responsibility as the software is installed and hosted on their server. That means you won’t have to worry about storing or updating any hardware. In addition to hosting the system on their hardware, the vendor also accepts the responsibility of IT issues and ensures regular backups - making an IT department an option rather than a necessity.

3: Predictable, Monthly Costs

One of the biggest differences between a cloud ERP system and an on-premise software system is the cost structure. With an on-premise solution, you’re paying a larger upfront investment as you’re purchasing the software licenses and paying for the implementation all at once. For cloud ERP applications, you pay the same implementation costs but the software licenses are paid for on an on-going monthly basis – you’re essentially leasing the software from the vendor as opposed to buying the licenses outright. This means that you’re responsible for paying on-going, predictable, monthly fees which makes it easier to budget costs and works to help improve cash flow.

4: Ability to scale up easily with growth

A thriving start-up plans for expanding business processes, departments, customer management etc. You can adjust users and applications up or down to meet the changing demands of your business, try-out new applications without a large capital investment, and roll out new applications to smaller groups individually, reducing risk and spreading training costs.

5: Support Global Accessibility

One cloud ERP system can service business operations around the globe, eliminating complex manual reporting from multiple systems. You and your employees will access the application and your data from anywhere, anytime, on any device.


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IDT Team

Integrated Data Technology is a leading solution provider in New York. Specializing in Business Management and ERP solutions, we identify key technologies and their impact on present and future business practices to help improve our clients productivity and profitability.

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