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Mohammad Mamoon Malik

Livingston Research

IT-ERP

23-December-2022

What are the Specific Advantages and Disadvantages of Cloud Computing for

Enterprise Resource Planning (ERP)?

Opposite to old-school on-site system networking method, a cloud computing

system for an enterprise resource planning (ERP) is a system that enables the remote

and on-site teams and resources of an enterprises to access all its applications

and processes which are on cloud through the internet. It is hosted by the vendors and

service providers on their cloud platform for which these vendors charge a monthly or

yearly subscription. Choosing a right system for ERP is crucial and is based on specific

advantages and disadvantages that business faces. Let’s discuss them briefly (Lenart,

39-50).

Cloud ERP advantages:

1-Data safety: Data is safe from viruses.

2-Scalability: Allows an ERP to scale its operation to any extent deemed suitable.

3-Enhanced CX: Better and smooth customer experience.

4-Accessibility: Accessible worldwide to any resource having access to the internet.

5-Lead the competition: With agile and automated processes, get a chance to lead the

competitors.
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6-Tech support system: Get access to a well-trained team from vendors for all

technical issues.

Cloud ERP disadvantages:

1-Vulnerability: Data becomes vulnerable to cyber-attacks from competition and

hackers.

2- Lags and Latency: Users can face hiccups because of network lags and added

latency.

3-Cost: Cost for unwanted add-ons and customizations are too high.

4-Incompetency: Hard to train in-house resources to handle the computing processes.

When using cloud computing for an enterprise, they will always require a stable and
constant internet connection. The cost to handle the computing processes and the
resources which will handle these processes will always be costly as compared to the
old-school methods. A business, however small or big, must always be considerate of
their needs and growth requirements before jumping to the conclusion whether cloud
computing is beneficial or not for them. A thorough analysis to weigh in all the factors is
of utmost necessity here. A decision not based on research and thorough plan could
hurt a business’s reputation and finances (Lenart, 39-50).
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Works Cited

Lenart, Anna. “ERP in the Cloud – Benefits and Challenges.” Research in Systems

Analysis and Design: Models and Methods, 2011, pp. 39–50,
https://doi.org/10.1007/978-3-642-25676-9_4.