Why moving your ERP to the cloud is no longer optional

Research suggests nearly a third of businesses today are running their IT infrastructure on-premise, or within your own IT environment. That can make their software difficult to scale and maintain, or adapt to the changing market. Cloud software, on the other hand, is more scalable and flexible because it’s managed remotely, and you benefit from new features, security updates and lower upfront costs. For manufacturers in particular, the flexibility that cloud software offers is critical as demand isn’t always certain and collaboration across teams is needed to deliver customer orders on time. 

Key summary 

• Many manufacturers haven’t migrated to the cloud which could be slowing them down and making it harder to adapt to changing needs
• Cloud-based systems offer many benefits: 24/7 remote access, improved security, automatic updates, collaboration, cost savings, scalability, disaster recovery and adoption of new tech
• Cloud-based systems like an ERP are a necessity for manufacturers because they improve flexibility and security, in the face of supply chain disruption and uncertain demand

8 reasons why manufacturers need to migrate to the cloud 
The cloud dates back to the early ‘90s but it was launched by Amazon Web Services in 2002. Since then, it’s offered small to medium sized enterprises (SMEs) a scalable and low-cost way to run their software and manage their data. Today over three quarters (78%) of businesses in the UK have adopted the cloud, with another 77% of CEOs planning to invest in AI and cloud solutions. 

With the cloud, your data and applications – like an enterprise resource planning (ERP) software – are delivered over the internet, instead of being hosted on local servers within your offices or factories. Not only does this free up physical space, it means teams can access their software and other applications from any location, with an internet connection and device. 

For manufacturers, including technicians and sales teams, it means being able to access critical business systems when they’re in the field, or use a service remote app to diagnose and repair products. It also enables you to offer remote or hybrid working for your administration, sales, HR or marketing teams. 

Your data is hosted on servers in remote data centres, which are typically managed by cloud service providers like Microsoft Azure, Amazon Web Services and IBM. As a result, systems are more secure because visitors can’t access your physical infrastructure. 

Cloud providers have some responsibility to protect your information, so have solid security processes including access control, encryption, disaster recovery and regular back ups. Microsoft Azure, for example, offers advanced security services such as firewalls, key vault and confidential computing. 

Cloud providers also hire specialised personnel to handle security updates and protection against cybersecurity threats. 

With a cloud-based ERP, software updates can happen in the background to prevent downtime and ensure you always have the latest, secure features. A cloud software vendor, like ECI, handles the majority of updates, security and physical infrastructure, promoting better cyber-security across your business. It also means your IT specialists are free to work on value-added tasks like testing and implementing new technology. 

A cloud-based ERP centralises your data and gives access to different departments across your organisation, so they’ll always have access to current and accurate information, whether they’re on the shop floor, office or working remotely. This also improves collaboration between production, engineering, design and planning teams who can work collaboratively on documents, drawings and plans.

The cloud can help you make cost savings because you don’t need to invest in expensive infrastructure like servers, hardware or data centre facilities. It also reduces costs related to IT maintenance such as cybersecurity, installation and testing. 

Read our cloud factsheet to find out how the cloud can save you money.

One of the main reasons cloud software is popular is because it’s scalable. So based on demand, you can expand your infrastructure without purchasing expensive servers and hardware, and it taking up on-site space. Typically, manufacturers buy a core software solution and add new functionality and modules as required.

Over four in ten businesses in the UK experience a cybersecurity attack or breach, and with criminals commonly targeting sensitive business data, the consequences can be catastrophic. Around 94% of businesses don’t survive a big data loss, and it can cause significant disruption and downtime for manufacturers. 

The cloud offers disaster recovery, so if you were to lose access because of a cybersecurity breach or server failure, there will always be a back-up copy.