Three Ways Cloud ERP Can Cut Costs

For the past few years we’ve witnessed cloud ERP solutions, like Microsoft Dynamics, become widely adopted and hailed for their ability to save money on upfront licensing and hardware costs. But there are other savings to be had when deploying ERP in the cloud, including these three things you might not have thought of when considering Microsoft Dynamics in the cloud.

Implementing an ERP Solution | AccountantCost Efficient Scalability

When you purchase any on-premise software license, the cost of scaling up or down can be surprisingly expensive.  Most software licenses apply to a single individual so if your bookkeeper leaves the company you can’t just pass her license on to her replacement. Security and user access concerns dictate that you purchase a new user license for a new employee.  Costs can also mount if you fail to renew your annual maintenance plan. On premise software installations will require you to pay back fees before you can add new users, modules or updates.  With a cloud solution you can easily terminate a subscription to one user license and add another without losing any money, and your cloud ERP provider handles all the user onboarding so your IT department is not bogged down with the routine set-up tasks of every time you add or remove a user.

Upgrades, service packs and hot fixes

Microsoft Dynamics ERP solutions installed on premises give you the ability to purchase a maintenance plan that lets you upgrade to newer versions of the product and install service packs and hot fixes. Pricing for an annual plan of this kind can range between 16% and 25% of the total cost of the system.  Compare that to a cloud-hosted system where updates, hot fixes/patches and services packs are included as part of your monthly subscription. Here again, not only is there a savings on the cost of an annual maintenance plan, but internal IT resources spent on ongoing management and maintenance of the system are eliminated.

Identical experience regardless of location

Perhaps the least obvious (but most important) cost savings occurs when you consider remote access and mobility. Think of the cost of deploying Dynamics in house and having to build, secure and maintain a secure VPN connection to allow employees to connect to the system. In addition to the additional expense, you may see decreased functionality and usability of the tools. This, in turn, may slow down remote users’ productivity. A cloud-based ERP system allows you to provide a seamless digital experience — the same environment workers would find in the office.  Again, because cloud ERP solutions are maintained and secured by host, you save significantly on the resources required to support remote users.

Want to know more about Microsoft Dynamics in the cloud?  Contact Accountnet.