The Basics of Cloud ERP Software
Just about every organization is already in the cloud or considering moving there. If you’re trying to decide whether to transition to cloud-based ERP software, you first need to understand some basic terminology. Then you can ask smart questions and identify the right solution to fit your business needs.
Multi-tenant vs. single-tenant
ERP software is built with multi-tenant or single-tenant architecture. Most organizations will benefit most from multi-tenant Software as a Service (SaaS) applications like Sage Intacct that were written exclusively for the cloud. With multi-tenant applications, the cloud provider shares infrastructure and applications across multiple customers and takes care of upgrades, security, and more. That means every user runs on the same software version, with updates and upgrades automatically applied across the business.
Single-tenant software versions—also called hosted or managed services—give a business dedicated access to the infrastructure and applications. Single-tenant solutions are typically more expensive than multi-tenant arrangements, and you have to manage the deployment much as you would for a private cloud.
Application programming interfaces (APIs) allow for communication between different applications. APIs are critical with ERP software because they allow you to integrate your ERP system with other cloud applications. Every ERP software solution will have APIs, but you’ll want to be sure they’re well-documented and have existing integrations with other popular cloud software products that you use, such as ADP and Salesforce.
If a cloud application is device-agnostic, you can access it from any device, from desktops to smartphones, using any web browser. Make sure that any ERP software you purchase is device-agnostic, so you can add new devices without concern about accessibility.
SOC 2 compliance
All cloud-based ERP software providers will no doubt promise that your data will be secure, but how can you be sure? First, ask to be certain that their data center has been audited. Then ask if they are SSAE 16 SOC 1 or SOC 2 compliant (SOC 2 is strongest). If they say they are compliant, request a copy of their SOC 1 or 2 report, which they should freely supply.
Insero & Co. can help you understand all the key features of different cloud-based ERP software solutions, and help you decide whether now is the right time for you to make the move to the cloud.