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What Does ERP Stand For? 3 Advantages of Cloud ERP vs. Legacy ERP

What Does ERP Stand For? 3 Advantages of Cloud ERP vs. Legacy ERP
What does ERP stand for?

What does ERP stand for?  ERP stands for Enterprise Resource Planning.  Enterprise Resource Planning (ERP) is a strategy that fits all pieces of a company's business process strategy together like a puzzle.  ERP considers what employees perform what duties with what tools to accomplish the company goals.  ERP software automates the business process goals of the company so that each employee operates in synch with one another to optimize performance. 

Technology moves fast ERP software developers compete to offer the most innovative and functional ERP software packages possible.  There are thousands of ERP software packages available.  The SAAS and Cloud emergence have taken legacy ERP systems to whole new level.

ERP customers still have thousands of legacy ERP systems to choose from but if customers prefer cloud based software-as-a-service integrated ERP business management software there are only a few market leaders along these lines.

Please find a handful of leading cloud software-as-a-Service mid-market ERP software providers below:

  1. NetSuite
  2. Intacct
  3. Acumatica
  4. xTuple

Please find a handful of leading legacy mid-market ERP software packages below:

  1. Sage 100 ERP
  2. Sage 300 ERP
  3. Sage 500 ERP
  4. Sage X3 ERP
  5. SAP
  6. Microsoft Dynamics GP, NAV, AX, SL
  7. Epicor
  8. Infor
  9. Many more...

Some major differences between the cloud applications and the legacy applications listed above are the following:

Most of the time the following is true in regard to Legacy ERP's:

  1. Require your own hardware infrastructure, or a 3rd party private cloud
  2. Are usually written in a proprietary or legacy programming language that often times get discontinued
  3. Usually offer a lot of functionality and add-ons
  4. Customizing tools are very good; add fields, tables, scripts, etc.
  5. Usually offer strong third party product integrations for financial report writing 

Most Cloud ERP's:

  1. Offer a unified code base system with a strong database platform
  2. Are written in web-based tools (java, html, etc.)
  3. Offer very strong customization capabilities
  4. Offer a variety of optional, bundled features, all based on the same suite
  5. Are completely web-based, accessible only via the Internet, most all browsers are supported thus implementation times tend to be drastically reduced

Some important advantages of cloud based ERP's are the following:

  1. Implementation time is drastically shortened because one all encompassing integrated system is unlocked at the time of implementation eliminating redundant data entry and the time, cost, and errors associated with using separate systems for accounting, sales, customer support, marketing, inventory, website, and ecommerce. 
  2. Eliminates the cost of managing, maintaining, and upgrading business applications.
  3. Total Cost of Ownership tends to be dramatically lower - When the cost of the software licenses, maintenance, software and hardware upgrades, customization, support and more, you quickly see that the cloud ERP web-based approach is a better choice in regard to IT budgets
In summary technology moves fast and the cloud ERP software-as-a-service model appears to be the future of ERP.  Cloud ERP developers have the ability to move much faster from a technology perspective to address the growing needs of ERP software customers.  Cloud ERP software customers have the luxury to shop for third party applications to address specific functionality requirements right on the web, purchase what they need and use it immediately without the hassle of hiring a local ERP implementation consultant.

Contribution by Kerry Gardner:  Director of Sales and Marketing - Klear Systems

Klear Systems

Klear Systems is a Sage, Microsoft and NetSuite business partner delivering world-class ERP and CRM solutions as well as custom development and IT services to customers throughout Southern California, including Orange County, Riverside, Los Angeles, San Diego, and Irvine.

We’re a young company with a tenured staff of professionals that bring broad experience and extensive talents to every engagement. Your business success is the measure of our success. Klear System’s talented team of programmers, consultants, and technicians never stops looking for innovative ways to solve business challenges. From project-planning, implementation, custom development, and ongoing support we keep the focus on delivering a measurable return on your technology investment.

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