Could A Cloud ERP System Save Your Business Time And Money?

Could A Cloud ERP System Save Your Business Time And Money?

So many small- and medium-sized business (SMB) leaders aren’t thinking about what their on-premises ERP solutions cost the company.

They have other “more important” financial issues to worry about such as the price of fuel, health care costs and tax increases.

Except, if you really think about it, knowing the cost of your on-premises system is critical, especially if there tools out there like cloud ERP systems that could save the business significant time and money.

At the very least, it’s important for SMBs to know the hidden “gotchas” about on-premises solutions. For example, who supports the system after the consultant has set it up? And how much does it cost for that support?

Here are five hidden costs that every SMB executive should consider before buying or significantly upgrading an on-premises ERP system. This is important because you just might discover that cloud ERP solutions are significantly less demanding on your time and wallet.

  1. Maintenance and support: There is huge difference between what you get with a cloud subscription model compared to a traditional on-premises program. Ongoing annual maintenance, patches and updates to the accounting application are included in cloud ERP. With an on-premises system, you’re usually billed for ongoing support after the initial setup.
  2. Hardware and software upgrades: With on-premises models, when you upgrade it feels a bit like going through the implementation all over again. The cost, time and potential scope crawl are there for a second time.
  3. Hardware and extended hardware support: Will your on-premises solution work with your current printer or device? If not, you’ll need a patch here or an upgrade there, and on-premises vendors typically charge for such changes. This is not often considered a hidden cost, per se, but it’s dismissed by vendors as a real problem for these kinds of solutions.
  4. IT resources: While you may already have your IT staff to manage other parts of the business, some SMBs are tempted to consider it a sunk cost. But if you think about how much time they’re spending to support and maintain your equipment, then that changes everything. You have to allocate a percentage of what you’re currently investing or hire additional people to help your IT staff maintain everything else you’re doing on your on-premises solution.
  5. Data backup: It costs money to store information, restore it or back it up. You don’t want to lose even a day’s worth of data. Buying a terabyte backup drive and plugging it into your basement server is just not going to cut it as a safe backup method.

So how do you circumvent these five issues and avoid hidden costs? The answer is by using a subscription cloud model.

All of the costs and functions associated with providing a comprehensive solution are bundled into one single monthly, quarterly or annual payment. All of those items assumed by the customer are included in the cost of a single bundled subscription offering in the cloud-driven market. Subscription models remove the need for upfront capital, offering a controllable operating expense.

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Steve’s been with SMB Suite since 1998 and has been involved with nearly every aspects of the Company’s business as a strategist, professional services executive, cloud solutions architect, and senior consultant. In his current role, Steve is responsible for SMB Suite’s revenue and oversees the execution of ERP, CRM and BI projects for customers across a broad range of industries. Steve combines his expertise in MS Dynamics GP, CRM and other Microsoft products with a strong foundation in accounting and business to identify gaps and streamline customers’ processes. Prior to co-founding SMB Suite, Steve was previously Corporate Controller for MEHLE Behr and, prior to that, Audit Senior for Ernst & Young. Steve holds a Bachelor of Business Administration degree from the University of Texas at Arlington.

Jeremy is responsible for SMB Suite’s technology vision, strategy and implementation and is the architect of the Company’s Dynamics Cloud Platform. Highly adept in every facet of managed services, ERP systems and e-commerce platforms, Jeremy’s expertise spans the implementation and support of business and financial software solutions, as well as the customization and integration of SMB Suite’s cloud ERP technology stack. He holds numerous Microsoft and industry-related certifications, and was primarily responsible for designing the Company’s progressive business services platform in the early days of the Cloud. Prior to SMB Suite, Jeremy served as the financial analyst, systems administrator, and information systems liaison for a $2 billion financial services corporation.

Monty is responsible for SMB Suite’s day-to-day operation and, most importantly, its customers. As a leader, motivator and mentor, Monty creates loyal high performance teams willing to “walk through walls” to accomplish their goals. Prior to SMB Suite, Monty served as President of The Bradshaw Group (TBG), a global distributor, manufacturer, and repair facility for digital printers. In this role, he was the Company’s ambassador to its most important domestic, European and Latin American customers and TBG achieved a best-in-class Net Promoter Score of 74 for its superb customer satisfaction. Prior to TBG, Monty served as the General Manager of Sam’s Clubs three highest grossing U.S. stores and was named Regional Operator of the Year in 1999. Monty holds a BBA in Marketing from Texas Tech University and is an active member of Business Navigators. He has been active in Vistage International, Executives in Action, the Dallas/Fort Worth Retail Executives Association, as well as, A.P.I.C.S., the leading professional association for supply chain and operations management. Monty also volunteers with Hunger Busters and ManeGait, a therapeutic horsemanship organization.

David is a proven financial and information technology professional with expertise in providing business accounting software and computing solutions. He began his career by starting and managing a successful independent consulting practice for several years. He then launched the local systems consulting unit of Ernst & Young’s Entrepreneurial Services Group, leading the office into the hi-tech consulting arena. After successfully developing the unit for Ernst & Young, David founded NextCorp (which became SMB Suite in 2013) to serve the business software needs of clients throughout the US. David has made SMB Suite one of the best cloud ERP providers in the industry. In addition to being a successful entrepreneur and leader, he is a software and technology specialist, holding certifications in various Microsoft and other technologies.