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Can Cloud Applications Deliver 2.1x Return On Investment?

Can Cloud Applications Deliver 2.1x Return On Investment?

Are you trying to decide whether or not to switch your company’s ERP solution from on-premises to the cloud? Are you researching ERP and wondering which platform would make the most sense for you?

Then you will be interested in a new whitepaper published by Nucleus Research: Cloud Delivers 2.1x More ROI.

This whitepaper focuses on the many ways that cloud based ERP can save you money in the long run.

The title really says it all: cloud application projects deliver 2.1 times the relative return on investment (ROI) of on-premises implementations – this is an increase of twenty-four percent from the 2012 research which put the added savings at 1.7 times. And because cloud applications are increasingly becoming more feature-rich, ROI is expected to continue to increase.

Rebecca Wettemann, VP of Research for Nucleus says, “Companies continue to invest in cloud applications and infrastructure projects because of the lower initial cost and faster time to value. As more and more vendors have invested in moving their solutions to the cloud, the breadth of availability of cloud platforms, applications, and services has grown – as well as the complexity of cloud applications available.”

That means that all the positive aspects of cloud-based applications, such as adaptability, integration, and customization, as well as lower startup costs and minimal maintenance will just continue to add to your ROI as time goes on.

How do you save with the cloud?

Right from the start you’ll save on consulting and implementation fees. The cost of implementing cloud-based applications is sixty-three percent less than that of on-premises applications. That figure reflects a forty percent increase from the 2012 figure. Quite a significant savings, indeed.

Then there is the question of technical support. On-premises technical support requires not only on site expertise, but costs fifty-five percent more that does support for cloud-based applications. With cloud-based applications, the vendor for the cloud application has the responsibility to fix anything that goes wrong. Most providers guarantee a certain “up time” and they are required by contract to make sure that their clients’ businesses don’t suffer from an IT tech being on vacation or unavailable. 

Another resource saving fact is that cloud applications require an average of ninety-one percent less energy than on premises applications. That’s good for you and good for the environment.

And because of the nature of the cloud and the technology that supports it, upgrades and technical support are performed automatically, seamlessly and without disruption to your business and without additional expense.

The savings with cloud-based applications are significant and that allows you to channel funds previously earmarked for your on-premises ERP into other, more productive areas of your business.

Do your research and find a vendor you can trust and work compatibly with and you will save yourself frustration in the long run. Your cloud vendor should understand not only the technology but also the needs and processes of your business.

The lower startup costs, the flexibility of the applications, the reduced need for support personnel, the maintenance responsibility of the vendor, and the environmental savings all provide compelling proof that cloud applications are a better return for your investment.

For more details and analysis, read the whole Whitepaper: Cloud Delivers 2.1x More ROI

If you would like to see what a cloud application can do for your business, contact CAL Business Solutions for a free product tour.

If you are interested in evaluating Acumatica ERP, contact CAL Business Solutions at 860-485-0910 x4 or

By CAL Business Solutions,

Follow us on Twitter: @CALERPNews

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