Myths & Rumors about Cloud ERP Solutions Debunked

Every entrepreneur is concerned about the effectiveness, security, and reliability of the systems & solutions that run his/her business. Downtime means lower or no operability in terms of sales closures, and hence it also lowers sales and profit figures. There is an unfounded perception that the cloud is not relevant, safe, or reliable. Here are some of the key myths & rumors about cloud ERP solutions debunked:

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Cloud ERP solutions are not as secure as an on-premise solution

Security is a top concern for any solution.

Legacy ERP vendors say that managing the software on-premise provides greater levels of security. It’s nigh impossible for an in-house IT department to always stay protected from threats while also handling user needs.

Cloud ERP solutions are actually more secure. It has the backing of the best brains and billion-dollar budgets. You don’t worry about installing security software one server at a time, like in an on-premise solution.

System support and security are core functions for a cloud service provider that they offer to their customers.

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Reliability is a Cloud ERP Vendor’s Achilles heel

Knowing that your ERP server is there in a captive site may seem comforting. You still need to consider server backup, redundancy schemes, failover plan issues at multiple locations, etc.

Cloud ERP solutions are more reliable as it is the commitment of the cloud ERP vendor to ensure minimal downtime. The cloud ERP vendor has to put in place a validated, geographically relevant, disaster recovery capability feature in the solution.

The few outages on the cloud environment have been over-publicized. How much do we know of those that occur on on-premise legacy solutions? Cloud providers invest in secure & state-of-the-art data centers with the most reliable equipment that is fully ready for failure or disaster with backups. Every possible safeguard is employed with billion-dollar budgets to maintain infrastructure and the best minds in IT to assure uptime and data safety & security. Can your company match that with in-house staff in an on-premise solution?

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Use the cloud ERP solution option of an on-premise major instead of a native cloud ERP

Every ERP vendor does offer a cloud deployment option, either directly or through partners. This might not be the right way to go forward as native cloud ERP solutions offers more advantages.

On-premise solution vendors noticed that the cloud and SaaS revolution was growing so they created cloud / SaaS options. The solution capability is the same as the old on-premise version. The only benefit is the transmutation of capital costs into operating expenses and the benefits of outsourcing the IT function.

However, native cloud ERP solutions are designed specifically to leverage the advantage of the cloud. Every user leverages the latest version of the software and improvements are immediately available for all users. The native cloud ERP leverages the full advantage of cloud computing that the cloud version of a legacy ERP does not.

In the cloud ERP solution, there are data issues and disruptions in the operation

In an on-premise solution, systems need uptime for updates, back-ups, maintenance, hardware changes, and expansions. There could be issues when there is a system/infrastructure failure.

The Cloud ERP system hardware and software installation, maintenance, tuning, performance monitoring and management, security, backup, storage, and upgrade/expansion are the clear onus of the solution provider.

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The cost advantages of the cloud ERP solution level out over the long term when compared to on-premise

Most of the studies significantly underestimate in-house IT costs related to the server, middleware, and database maintenance and upgrade; the internal costs of application release updates; managing interfaces between toolsets and application products; IT staff training; IT resources administration & overheads, installing periodic “release” updates to the ERP software solution and obsolescence (every six or seven years, on average).

Most such calculations that present this leveling of competitive advantage avoid adding the cost of upgrades into a multi-year TCO calculator that gives a very incomplete view of the true TCO.

Some experts claim that the cost advantage of cloud ERP solutions over on-premise ERPs levels out in the longer term. Over the long term, the hardware, infrastructure, and solution would probably need to be replaced anyway to stay relevant. These additional costs plus the difficulty of migration from an on-premise system, and the obsolescence costs make an on-premise solution irrelevant for the future.

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The cloud ERP cannot be customized 

In a cloud, ERP users can tailor their ERP system to address their unique needs without modifying the software code which is not the case in an on-premise solution.

There is a misconception that cloud-based solutions cannot be customized. The right cloud ERP does this while preserving the integrity of the system and also keeping your costs down. Of course, excessive customization is an endless exercise that is not very fruitful for business as costs may go up in any ERP solution.


We at Versa have created a secure cloud-based comprehensive multi-award winning ERP solution that is e-commerce and mobility ready.

It addresses key issues of the small business domain in the most effective manner possible.

The Versa Cloud ERP system allows businesses to automate and optimize their operations across multiple companies, countries, and currencies with one integrated ERP system.

We will help you in a structured manner to migrate your data seamlessly from Epicor, Infor, QuickBooks, Microsoft Dynamics, MYOB, Sage, SAP Business One, etc when you make the decision.

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“Debunking common myths and misconceptions about cloud ERP”- a white paper by Plex

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