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Cloud Computing for Enterprise Resource Planning (ERP)

First Level Heading

In the context of cloud computing, people or businesses have on-demand access to a shared pool

of computer resources through servers, information storage, networking, etc. Valacich,

Schneider, & Co., 2016. The term "cloud" refers to this network of information exchanged on

the internet. Cloud computing software and services can be used by enterprise resource planning,

which makes it simpler for organizations to store their data and complete tasks. Similar to every

other system, ERP system has benefits and drawbacks that will be discussed in this essay.

Advantages;

Maintenance cost; No physical servers exist, hence there are no maintenance costs because

there are no servers on the premises. As there are no costs associated with hardware

maintenance, this frees up time for businesses to concentrate on production. Additionally, since

there are no distractions from trying to manage servers, this promotes consistency in operations.

Implementation; Given that everything is done online, cloud computing does not require the

installation of additional gear. Since there is no human interaction required, this feature makes

implementation quick. In addition, the system is fully automated, updating data without human

intervention.
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Speed; Functions in this kind of system are easily available because updates are made quickly

and include more features. The system's ability to update quickly makes room for greater

functionality, which increases its usability.

Disadvantages;

Data security; Information is extremely risky in this type of system due to the vulnerability of

any internet system to hackers. Additionally, because this type of technology is utilized to

control the system and results in losses, a breach could affect productivity.

Cost; Due to the necessity of integrating on-premise systems with the cloud, this may result in

cost increases. Due to the level of customization needed, cloud ERP may not be a good fit for

industries with very complex processes.

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Works Cited

Emerging Technologies for Information Systems, Computing, and Management. Springer, 2013.

Monk, Ellen F., and Bret J. Wagner. Concepts in Enterprise Resource Planning. Course
Technology, 2013.

Sosinsky, Barrie A. Cloud Computing Bible. Wiley, 2011.