Cloud-based ERP software: an end-to-end solution overview
February 12, 2025
With 10+ years in ERP implementation services, Itransition helps companies of all sizes adopt scalable cloud ERP software solutions to expand their capabilities, effectively address evolving business needs, optimize operational costs, and streamline digital transformation.
Cloud ERP market stats
projected global cloud ERP market size by 2030
of companies interested in ERP software are open to a cloud deployment model
organizations hastened their switch to cloud ERP solutions
Cloud ERP concepts explained
Deployment strategy
cloud ERP software is deployed in a cloud using the software-as-a-service (SaaS) or platform-as-a-service (PaaS) model.
Infrastructure ownership
cloud ERP software exists and is managed in the cloud by an ERP vendor, which provides the software in an ‘as a service model’. The vendor is responsible for the servers, data storage, the underlying operating system, security, and feature upgrades.
Cloud hosting
an ERP platform may be deployed in a public multi-tenant cloud environment (computing resources are shared among multiple companies) or in a private single-tenant cloud environment (computing resources are dedicated to a single company).
Subscription fee
a fixed amount of money a company pays annually or monthly for using the ERP software, which includes software upgrades, maintenance, and security. It is charged per user or per organization.
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Cloud ERP vs on-premises ERP
An ERP solution, regardless of where the software is deployed and who manages it, generally supports the same business processes. However, there are many core distinctions between the two options, which makes the cloud vs on-premises decision a major one.
Total cost of ownership
Cloud
Cloud ERP is provided on an ‘as a service’ basis, thus you pay a subscription fee defined by the ERP functional scope, number of users, storage and compute resources. Adjusting costs according to your specific needs makes budget planning easier.
On-premises
On-premises systems imply substantial upfront and continuous investments to purchase and manage the software and the hardware (servers, server room, cooling system, etc.).
Solution deployment
Cloud
Cloud ERP is associated with faster deployment, as there is no need to procure and set up an IT infrastructure – all resources are available as soon as the license is purchased. You can implement the software across multiple regions, subsidiaries, and divisions according to your requirements.
On-premises
As on-premises ERP software requires infrastructure deployment, the process can take considerably more time due to hardware acquisition, software configuration and launch, and IT specialists onboarding.
Technology expertise
Cloud
As the vendor manages all upgrades and resolves any ongoing issues, the requirements for in-house tech expertise are not high.
On-premises
On-premises ERP software requires an in-house IT department with relevant qualifications to install, manage, and keep the system operating in top form.
Scalability
Cloud
Up- and downscaling is quick and realized through purchasing additional licenses/computing resources.
On-premises
Hardware-related issues can impede the upscaling: reconfigurations or new hardware can be required.
System upgrades
Cloud
All new features become available to tenants immediately after the release by default. Cloud ERP solution upgrades take place during non-working hours, and the previously implemented customizations and integrations automatically carry forward, which helps minimize the risk of process disruption.
On-premises
System upgrades are resource- and time-consuming. If on-premises ERP solutions undergo multiple customizations, upgrading the system to new releases can be difficult. You may need to re-implement previous customizations and integrations with every future system version.
Infrastructure & data control
Cloud
Cloud ERP implies minimal control over IT infrastructure.
On-premises
On-premises ERP is the best fit for a company that requires absolute control over its solution and the data it stores.
Performance
Cloud
Cloud ERP offers optimized performance. If more computing or storage resources are needed, the system automatically adjusts, providing additional resources.
On-premises
The performance of the on-premises ERP solution is closely bound to its scalability. A scalable solution will help meet the most deliberate requirements.
Availability
Cloud
As cloud ERP is accessed remotely over the internet, data accessibility is guaranteed as long as you have constant connectivity to reliable internet.
On-premises
On-premises ERP software doesn’t rely on external servers, thus high service availability and data accessibility are guaranteed unless there’s a local power outage.
Maintenance
Cloud
A cloud ERP vendor takes on system upgrades, security, data backups, and software support and configuration.
On-premises
ERP software maintenance is the responsibility of a company. It includes system upgrades, data backups, and hardware and infrastructure support and configuration.
Security
Cloud
Leading cloud ERP vendors use the highest security standards and offer comprehensive security such as continuous data monitoring and dynamic masking, end-to-end data encryption, and granular access control.
On-premises
By implementing on-premises ERP, you have absolute control over who accesses data and how they use it. The overall system security depends on the expertise of the in-house IT team.
Mobile-readiness
Cloud
Cloud ERP systems offer remote access, including via mobile devices, out-of-the-box.
On-premises
Setting up remote access for on-premises ERP systems entails extra costs and is more technically complex.
Customization
Cloud
Cloud-based ERP software offers less customization capabilities. Although it makes the system less vulnerable to crashes, it could be a drawback for companies with complex workflows.
On-premises
On-premises ERP software allows for extensive software customizations to meet a company’s unique requirements. However, extensive customizations could be costly.
Types of cloud-based ERP software
Public cloud ERP software
runs on a remote server and is managed by a vendor, while cloud computing resources are shared among multiple customers.
Private cloud ERP software
is deployed and managed in a private cloud, which means compute resources are dedicated to a particular company and are not shared with other tenants.
Hybrid cloud ERP
runs in both private and public cloud environments for additional security, compliance, and cost-efficiency.
Multi-tenant SaaS
is SaaS ERP, where multiple customers of a public cloud provider access the same software instance (e.g., data of multiple companies is stored in shared resources, but each company can only access its own data).
Single-tenant SaaS
is a SaaS-based ERP where data is stored and processed with private resources.
Best cloud ERP systems on the market
Key features
- Billing and finance management
- Manufacturing management
- Production quality management
- Equipment and fleet management
- Inventory management
- Repairs management
- Human resources management
- Project planning and controlling
- Procurement and subcontractor management
- Contact management
- CRM
Best for
- Small companies
- Midsize companies
Deployment
- Public cloud
- Private cloud
Product differentiator
- Advanced integration capabilities
- Superior user experience
Limitations
- Challenging to scale and maintain
Key features
- Finance management and accounting
- Financial planning
- Human resources management
- Asset management
- Professional services automation
- Supply chain management
- CRM
- Billing
- Sales order management
- Opportunity management
- Built-in reporting
- Analyst report generation and forecasting capabilities
- KPIs tracking and dashboards
Best for
- Companies of all sizes
Deployment
- Public cloud
Product differentiator
- Built-in BI
- Rapid configuration and deployment in specific product-centric industries
Limitations
- Price hikes in the long run
Key features
- Financial management
- Accounting and budgeting
- Sales management
- Supply chain management
- Fixed asset management and inventory control
- Project management
- Service management
- Manufacturing management
- Workforce planning
- Analytics and reporting
Best for
- Small companies
- Midsize companies
Deployment
- Public cloud
- Private cloud
Product differentiator
- Built-in ad-hoc analytics capabilities
- Native integration with the Microsoft ecosystem
Limitations
- Broad partner ecosystem, making it difficult to choose an implementation partner
Key features
- Finance
- Accounts payable/account receivable
- General ledger control
- Cost accounting
- Cash and bank management
- Fixed asset management
- Financial analytics and reporting and more
- HR
- Payroll
- Personnel management
- Recruiting
- Task management
- Benefits and compensation management
- Employee performance and learning
- Workplace safety management
- SCM
- Asset maintenance control
- Cost management
- Sensor data intelligence
- Master planning
- Procurement and sourcing
- Manufacturing production control
- Sales and marketing
- Transportation management
- Warehouse management
- Project operations
- Project planning
- Project cost estimation and management
- Project scheduling
- Resource management
- Effort tracking
- Invoicing
- Expense management
Best for
- Midsize
- Large companies
Deployment
- Public cloud
- Private cloud
Product differentiators
- A unified cloud platform for managing all core business processes
- Embedded AI for greater automation and advanced analytics
- Interoperability with the Microsoft ecosystem
Limitations
An extensive ecosystem of implementation partners and a complex customization process
Key features
- Billing and costing
- Financial and accounting
- CRM and customer service
- Inventory and order management
- End-to-end project management
- Supply chain management
- Asset management
- Document management regulatory compliance
- EDI support
Best for
- Companies of all sizes
Deployment
- Public cloud
- Private cloud
Product differentiator
- Advanced technology capabilities (AI, analytics and advanced user experience)
- Enhanced integration customization
Limitations
- High cost and complex licensing
- A lack of consistent consulting and support resources across regions
Key features
- Financial management
- Commerce management
- Order management
- Construction accounting software
- Project accounting
- Distribution management
- Field service edition
- Customer relationship management
- Material requirements planning
- Advanced planning and scheduling
- Manufacturing management
- Product configurator
- Analytics and reporting
- Mobile application
Best for
- Small companies
- Midsize companies
Deployment
- Public cloud
- Private cloud
Product differentiator
- Ease of use
- Speed of initial deployment
- Flexible pricing model
Limitations
- A steep learning curve
- No free trial
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Cloud ERP software selection checklist
Business process coverage
comprehensive coverage of all business functions, modules, and workflows and ability to accommodate future business needs.
Industry expertise
industry-specific features, custom extensions, pre-built connectors to popular third-party applications, and compliance with industry regulations.
Support
availability of various support levels, coverage for specific locations, and an option to engage a third-party vendor for platform implementation.
Integration capabilities
seamless integration with the company’s IT systems, complementary third-party apps, industry specific software, and business intelligence, machine learning, and analytics services.
System upgrades
regular system updates and upgrades for improved functionality, security, and business operations.
Costs
transparent pricing, including extra costs for additional functionality, support levels, and other factors, aligned with the company’s expectations and business model.
End-to-end cloud ERP implementation services
Itransition helps companies across industries implement scalable and future-proof cloud-based ERP software solutions as well as upgrade or migrate existing ERP platforms to meet evolving business needs.
ERP consulting
- Analysis of business needs and technology environment
- ERP solution strategy creation and project roadmapping
- Implementation support (upon request)
- ERP functional and non-functional requirements definition
- ERP vendor selection support
ERP implementation
We provide end-to-end ERP implementation services that include all or some of the following activities:
- ERP consulting
- Custom ERP development
- ERP customization
- ERP integration
- ERP testing
- ERP migration
- ERP support and maintenance
Client spotlight
90%
manual tasks automated
Cloud-based ERP system for a repair & maintenance service company
Our team introduced an Odoo-based ERP solution, which helped the customer automate core business processes, reduce purchase order approval time by 50% and accelerate work order management by 100%.
80%
of manual tasks automated
Odoo-based fleet management solution in the cloud
Our team delivered an ERP system for a Canadian car repair shop, which resulted in the reduced operational expenses by 50% and increased client satisfaction due to operations transparency.
Cloud-based ERP adoption roadmap
1
Analysis
An ERP consulting team defines and analyzes business processes, workflows, and existing infrastructure to elicit functional and non-functional requirements and outline the ERP scope.
2
Design
The expert team elaborates on requirements, designs the ERP solution’s high-level architecture, outlines an integration scope, and selects optimal technology.
3
Planning
The project manager outlines project stages and deliverables, timeframes and budget, resources and contingency plans, and develops a change management plan.
4
Configuration/Customization
The team proceeds with the configuration and customization of the cloud ERP platform. After that, they set up integrations between the ERP platform and the existing technology environment.
5
Testing
The quality assurance engineers check the ERP solution for bugs, inefficiencies, malfunctions, and data quality issues by running functional, performance, usability, and compatibility testing.
6
Deployment
ERP experts deploy the ERP platform to the production environment and migrate corporate information from legacy systems, third-party software, and other data sources to the ERP database.
7
Training
ERP consultants conduct webinars and live classes and offer onboarding training materials and support documentation to increase user acceptance rates and improve overall productivity.
8
Support
The ERP support team manages performance issues, resolves bugs, fine-tunes data flows, and performs technology upgrades on request.
Cloud-based ERP usage across industries
- Inventory and warehousing
- Supplier and partner management
- Order fulfillment
- Shipping and distribution
- Returns management
- Accounting and finance
- Customer relation management
- Contractor and subcontractor management
- Supplier management
- Project management
- Accounting and finance
- Field services
- Сonstruction health and safety plan
- Inventory and warehouse management
- Procurement management
- Order fulfillment
- Production management and planning
- Recipe/formula management
- Inventory and warehousing
- Compliance and quality management
- Supply chain management
Logistics
- Dispatch management
- Cost management
- Fleet resource planning and tracking
- Security of goods
- Inventory control
- Financial reporting
- Fleet maintenance
- Customer order management
- Production management
- Procurement management
- Field service
- Supply chain and inventory management
- Finance and accounting
- Asset management
- Supply chain management
- Project management
- Finance and accounting
- Production and quality management
- Risk management and compliance
- Patient management
- Appointments scheduling
- Patient accounting and billing
- Customer service
- Resource planning
- Inventory and medication management
- Claims management and underwriting
- User management
- Policy management
- Supplier management
- Task management
- Subscription management
Telecommunications
- Provisioning
- Billing
- Field services
- Customer support
- Asset management
- Customer relationship management
- Spare parts planning
- Accounts payable and receivable
- Construction management
- Tenant and property management
- Marketing automation
- Finance management
- User portal
Benefits of cloud ERP
Today, the majority of organizations are opting for cloud-based ERP solutions over on-premises platforms, due to several key advantages.
Lower up-front investments
Cloud enterprise resource planning software helps companies eliminate costly expenses associated with server purchasing and maintenance, IT staffing for initial solution implementation and ongoing maintenance, software license fee that is paid in full and upfront with on-premises solutions, security and backup costs. Having a low entrance barrier, cloud ERP solutions enable startups and small businesses to access the same ERP capabilities of large corporations.
Streamlined implementation
With vendor-supported cloud ERP implementation, companies can bypass concerns about hardware selection and installation, IT staff onboarding and training, security setup, and providing authorized employees with seamless business data access. As soon as the cloud ERP platform is configured, companies can immediately focus on process automation.
Instant scalability
Cloud ERP software allows for rapid up-scaling with minimized performance deterioration risks connected with a sudden increase in the number of users or a drop in data volumes. Companies can then scale down and adjust software use according to fluctuating needs, dynamically optimizing operating costs.
Worry-free system maintenance
Most cloud ERP providers supply updates in automatic mode unlike upgrades of solutions deployed in private data centers, which consume significant IT labor resources and evoke possible disruptions in business processes. Software upgrades, functionality extensions, and security patches usually happen in the background or during off hours, so users experience no disturbance.
Improved data accessibility
With cloud ERP deployment, your team can access real-time data whenever and wherever there is a stable internet connection. With accurate corporate information available, siloed departments can effectively collaborate, generate timely financial reports and statements, identify process disruptions, and achieve operational excellence.
Cost transparency
Cloud ERP solutions are offered under either usage-based (paying for the resources and functionality used) or fixed monthly/yearly subscription fees, with standard security, system upgrades, and maintenance being usually included, making them a viable option for businesses looking for cost transparency.
Vendor support
Cloud-based ERP solutions can be supported 24/7 regardless of time zone and maintenance/upgrades required, which reduces the strain on the in-house IT department.
Integration flexibility
Cloud-based ERP software tends to integrate well with other cloud-based services and management software due to a library of pre-built connectors, easy-to-use APIs, and standardized interface protocols.
Disaster recovery
Data backups and disaster recovery capabilities of cloud ERP solutions are handled by professional experts, while on-premises ERP solutions can never eliminate the risk of catastrophic data loss in the case of hardware or software failure or a natural disaster.
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Cloud ERP challenges & solutions
Challenge
Solution
Cloud ERP solutions do not allow for heavy customization, which can pose challenges for companies with complex workflows that need a tailored approach.
Companies can enable customization of cloud-based ERP by developing additional integrations, changing software configurations, and adding extensions. However, if heavy customizations are required and there is a high risk of application errors due to unsupported code, cloud-based SaaS ERP solutions are not the best fit.
Flexible periodic payments, which can increase in the long run, can make cloud ERP an expensive option.
For companies that grow rapidly, cloud subscription costs can exceed the costs of running a legacy solution. To avoid that, many companies resort to professional consultancy that helps them assess both options, educate them about the most common cloud-based ERP cost structures and models, and match them up with the company’s current and future needs.
Deploying a cloud ERP solution or switching to the cloud from legacy ERP can entail some resistance from stakeholders and end-users.
Even if the interface and the functionality of a newly-delivered cloud ERP solution are intuitive and easy to use, companies still need time and support to fully adapt to it. An elaborated change management plan and extra support from the ERP partner will simplify and streamline the adaptation.
Integration with legacy systems can hinder the cloud ERP solution’s success due to varying interface protocols, private APIs, and system documentation loss.
To transform siloed corporate systems into a cohesive environment and achieve maximum interoperability, companies can use various integration approaches, such as delivering point-to-point integrations, developing a middleware layer, or employing iPaaS. For superior integration flexibility, some companies create a hybrid ERP solution, which facilitates smooth data flows between legacy, on-premises, and cloud systems and services.
Data security is a top concern for most companies considering cloud-based ERP software.
All major cloud ERP vendors offer a holistic approach to data security. They offer 24/7 system monitoring, end-to-end data encryption, dynamic data masking, multi-factor authentication, controlling physical access to the equipment, and system vulnerability assessment.
Ensuring the success of a cloud-based ERP solution
The success of a cloud-based ERP project begins with choosing a reliable technology partner that assists with the cloud ERP software selection and guides you through a rocky implementation process. With 25+ years in delivering enterprise software solutions for companies across industries, Itransition offers a full range of ERP services to help you effectively manage your business processes.
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