5 Reasons to Leave Legacy Solutions Behind and Move to Cloud ERP

Today, in spite of the great advances made in cloud technology, many companies still rely on legacy, on-premises ERP solutions to manage their operations. These systems, while once cutting-edge, are now outdated and struggle to keep up with the demands of modern business. According to a recent survey by Gartner, 85% of organizations will be “cloud-first” by 2025. This shift is driven by the growing awareness of the limitations and risks associated with legacy systems.

Despite their widespread use, on-premises ERP solutions are no longer the best choice for businesses that want to stay competitive. With the rise of cloud technology, companies are finding that they can achieve greater flexibility, cost savings, and security by moving to a cloud-based ERP solution. In this article, we will explore five key reasons why it’s time for you to leave legacy ERP systems behind and embrace the cloud.

5 Serious Shortcomings of Legacy ERP

It’s not just a case of “out with the old, in with the new.” There are serious risks to companies that stay with their outdated, legacy ERP system—financial, security, and growth risks that pose a real threat to your continued success.

1. IT Costs, Maintenance, and Upgrades

On-premises ERP solutions require significant investment in IT infrastructure, including hardware, software, employee time, and ongoing maintenance. These costs can quickly add up, especially when it comes to upgrading the system. Upgrades are often complex, time-consuming, and expensive, requiring businesses to allocate substantial resources to keep their ERP system running smoothly. This focus on maintaining the system diverts attention from more strategic initiatives that could drive business growth.

2. Scalability as Your Business Grows

As your business grows, your ERP system needs to scale accordingly. Legacy on-premises systems are notoriously difficult to scale. Adding new users, features, or capabilities often requires additional hardware and extensive configuration, which can be both costly and time-consuming. This lack of scalability can stifle business growth and limit your ability to respond to changing market conditions.

3. Security and Disaster Recovery

Security is a critical concern for any business, and legacy ERP systems can leave your data vulnerable. On-premises systems require in-house management of security protocols, which can be challenging to maintain at a high standard. Additionally, disaster recovery plans for on-premises systems are often complex and costly to implement, putting your business at risk in the event of a system failure or data breach.

4. Integration and Customization

Legacy ERP systems are inflexible when it comes to integration with other business applications. Customizing these systems to meet specific business needs can be a cumbersome and expensive process. This lack of flexibility leads to data silos, where critical information is trapped in different systems, making it difficult to get a comprehensive view of your business operations.

5. Accessibility In and Out of the Office

In today’s mobile world, employees need access to critical business information anytime, anywhere. Legacy on-premises ERP systems are typically only accessible from within the office, limiting the ability of your team to work remotely or access data while on the go. This lack of accessibility can hinder productivity and slow down decision-making processes.

5 Benefits of Moving to Cloud ERP

If those risks have you worried, there’s a solution. Cloud ERP, by design, mitigates these risks and simplifies your technology stack so you can focus more energy on what matters most – your business.

1. Reduced IT Costs and Simplified Maintenance

Cloud ERP solutions significantly reduce IT costs by eliminating the need for expensive hardware and reducing the burden of system maintenance. The cloud provider manages all updates and maintenance, ensuring that your system is always up-to-date with the latest features and security patches. This allows your IT team to focus on more strategic initiatives that can drive business growth.

2. Seamless Scalability

One of the biggest advantages of cloud ERP is its scalability. As your business grows, you can easily add users, expand functionality, and increase storage without the need for additional hardware or complex configurations. This flexibility allows you to scale your ERP system to meet the changing needs of your business, helping you stay competitive in a rapidly evolving market. Additionally, if demand is seasonal or otherwise fluctuates, you can scale up and down as needed.

3. Enhanced Security and Built-In Disaster Recovery

Cloud ERP providers invest heavily in security, offering advanced encryption, regular security updates, and robust disaster recovery solutions as part of their service. Your data is stored securely in the cloud, with automatic backups and failover systems in place to ensure that your business can continue to operate even in the event of a system failure or cyberattack.

4. Easy Integration and Customization

Cloud ERP systems are designed with flexibility in mind, making it easy to integrate with other business applications and customize the system to meet your specific needs. With cloud ERP, you can eliminate data silos and gain a comprehensive, real-time view of your business operations. This enables better decision-making and a more agile response to market changes.

5. Anywhere, Anytime Accessibility

Cloud ERP systems are accessible from any device with an internet connection, allowing your team to work remotely or access critical business information while on the go. This increased accessibility enhances productivity, as employees can collaborate more effectively and make informed decisions faster, regardless of their location.

Acumatica: A True Cloud ERP Solution

When it comes to choosing a cloud ERP solution, Acumatica stands out as a leader in the mid-market segment. Acumatica is designed to meet the needs of growing businesses, offering a flexible, scalable, and cost-effective solution that empowers companies to manage their operations with ease. With Acumatica, businesses gain access to a wide range of features, including financial management, project accounting, CRM, and inventory management, all within a single, integrated platform.

What sets Acumatica apart is its commitment to providing a true cloud experience. Unlike other ERP systems that offer a cloud-hosted version of their on-premises software, Acumatica was built for the cloud from the ground up. This means that Acumatica users benefit from a solution that is inherently scalable, secure, and accessible from anywhere, without the limitations of legacy technology.

Move to the Cloud with a Partner Invested in Your Success

We’ve explored the significant drawbacks of legacy ERP systems and the compelling benefits of moving to a cloud-based solution. The decision to transition to the cloud is a critical step toward ensuring your business remains competitive in today’s fast-paced market. However, making this move requires the right partner to guide you through the process.

Gale Force Consulting is uniquely positioned to help you successfully migrate to the cloud. With decades of experience and a no-nonsense approach, our team will work closely with you to understand your specific needs and tailor a solution that fits your business. We’ve helped hundreds of companies just like yours, unlock the full potential of cloud ERP, and we’re ready to do the same for you.

Don’t wait any longer to modernize your business. Contact Gale Force Consulting today to learn how we can help you make the move to cloud ERP and set your business up for future success.