The evolution of Cloud ERP

Published: 17 August 2023

Traditional ERP systems have been around for years. The first system launched in the 1960s to support the production of tractors and machinery used in manufacturing. The solution gained popularity as it allowed businesses to track their inventory and manage production. Traditionally, ERP systems were delivered on-premise. However, they’re now more commonly being delivered via Cloud and in a SaaS offering. Latest figures predict the ERP Cloud market will be valued at 168.34 Billion by 2030, up 12.53% from the period 2023 to 2030. This growth and continued investment shows Cloud Software is a key requirement for most businesses. This blog looks at the reasons why traditional ERP systems have evolved with the Cloud, and its benefits.

  • Accessibility

    With hybrid working now the norm, it’s important for companies that their ERP systems can be accessed and updated remotely. ERP via the Cloud rather than traditional on-premise, facilitates greater accessibility as your team can access the software from anywhere, at any time. Real-time access to information and functions leads to a better service for customers as their needs can be met on demand. Increased accessibility also means data is readily available to your whole organisation, in one place, in real-time. This data can encompass all areas of a business from finance to supply chain to production. 

  • Improved operational resilience

    With cloud-based ERP, regular software updates are deployed, free of charge, throughout the year. This provides your business with new tools and functionality on release day. Typically, updates to on-premise solutions need to be scheduled in, involving costly time from consultants and are not always taken up when available. This causes systems to become out of date. 

  • Greater responsiveness with real time data

    Planning and forecasting is difficult without real time data. Cloud based ERP systems enable access to information held within large and complex data sets. Reporting from Cloud ERP using companion tools such as Microsoft Power BI enable real-time analytics, which are key to better decision making. Cloud based ERP allows you to see trends, predict changes and automate processes. This improves your processes and puts you in the best position to build customer satisfaction. The lengthy process of having to extract data with an on-prem solution means businesses cannot be as adaptive as they would like. Being readily available to adapt to market trends and factors is key. This will prevent   getting left behind by your competitors. Cloud ERP is at the core of your business and can be used on demand. 

  • Greater out of the box functionality

    Traditional bespoke ERP systems are expensive to design and implement. Cloud ERP systems come with greater pre-configured standard functionality which can be delivered at a faster rate. Whilst this approach does lose some of the tailor-made aspect of the software, your ERP provider can still customise the system to suit your needs. Secondly, as it’s used in multiple industries, the features will be universal and effective across the board.  


Whilst Traditional Bespoke ERP systems have their place in the world, in the majority of cases, bespoke systems are delivered via a traditional on-premise platform. However, modern cloud ERP systems can offer the best of both worlds. An off the shelf solution which can be quick to implement and adopt, with the ability for the application to be tailored to meet your business’ specific requirements. The concept of ERP is still the same – assisting the completion of projects and tasks. However, the way they are delivered has changed. Cloud software is revolutionising this market, giving companies greater accessibility and better response times. The forecasted growth of the Cloud ERP market is a key indicator that businesses are keen to continue making use of these solutions. 

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