Ever since the inception of ERP systems industries across the globe has found it useful leading to its rising popularity. Cloud-based ERP runs over the internet whereas on-premise ERP runs on in-house servers located within an organization. On-premise ERP can be installed and managed by the company’s IT department. Before the discovery of cloud ERP premise ERP was brought into use. The earliest traces of ERP can be found in the use of MRP(Material resource planning).

Early ERP systems offered inventory control and business management. The advent of cloud ERP helped businesses to securely access critical data through the internet. Due to cloud ERP, construction firms no longer need to purchase maintenance hardware. ERP automation helps to reduce the need of hiring IT staff and also leads to easy implementations and maintenance. Erp systems help to run businesses efficiently. Here’s how cloud ERP helps secure the construction industry’s future.

Cost cutting

On-premise ERP systems require upfront payment and the company also needs to purchase its lease servers, networks and storage units for smooth functioning. Cloud ERP just require an annual or monthly subscription. Investing in cloud Erp helps to reduce operational expenditure.

Security

Keeping the data stored in on-premise ERP increases the risk of data breaches, tampering and theft. On-premise ERP fails to offer high-end security to the data. Cloud ERP offers advanced security measures for data protection.  The multi-layer firewall and strong authentication safeguard the cloud ERP data against hacker attacks.

Maintenance

On-premise ERP systems need to undergo maintenance and occasional troubleshooting which needs to be done by trained IT professionals. Cloud ERP maintenance and troubleshooting can easily be managed with automation or by the provider.

Scalability

On-premise ERPs are dependent on hardware for functioning and backup. The hardware tends to get outdated with time and needs to be replaced. Hardware change not just proves to be an additional cost but also is time-consuming and reduces business progress. Cloud ERP being independent of hardware have better performance. Cloud ERP helps to improve business scalability.

Cloud ERP contributes to revenue growth, leads to international expansion and improves the customer base. Switching over to cloud-based ERP offers several growth prospects for the construction industry.