What Is Cloud-Based ERP Software and How Does it Benefit Your Business?

• Cloud
• September 9, 2025

by Bipin Mishra

Cloud-based ERP is transforming how businesses operate. Be it offering real-time insights, scalability, and reduced costs, the traditional systems can’t match the benefits of cloud ERP systems. This blog dives deeper and helps you know everything about cloud ERP systems, key features, benefits, and real-life examples for a thorough understanding.

Cloud-based ERPs are revolutionizing how modern businesses operate. The top examples include Oracle NetSuite, Microsoft Dynamics 365, and CollabCRM. They provide faster, flexible, accessible, cost-efficient, and collaborative solutions. What these ERPs provide can never be possible with traditional ERPs. 

Cloud ERP systems feature everything modern businesses need to thrive in the digital landscape. They include faster deployment, limitless accessibility, real-time insights, and more. Besides, cloud-based ERPs prevent you from making huge upfront investments. This is because the service providers themselves manage cloud solutions. To get the most out of your initiative, work with an ERP software development company that provides you with complete assistance, from development to maintenance.

Getting triggered to implement a cloud solution right now? It’s good, but before that, you need complete information about it. This blog explains what cloud-based ERP is, along with its features & benefits. Furthermore, it also backs them with real-life examples and industries using them. This way, it helps you know everything for a cloud ERP implementation. 

What Is Cloud ERP Software? 

Cloud-based ERP (Enterprise Resource Planning) software is a type of business management system that is stored and accessed over the Internet and delivered by a third-party service provider. Unlike traditional ERP, which is stored on-site and requires on-site infrastructure, cloud ERP is stored in the cloud and managed by a cloud service provider. 

A cloud ERP system comes with mobile access, real-time updates, and subscription-based pricing. It supports deployment models such as public cloud, private cloud, and hybrid solutions, which in turn provide businesses with the needed flexibility. 

With cloud-based ERP software, businesses are able to mitigate major capital outlay, as it comes with a subscription-based pricing model. This prevents businesses from wasting a considerable amount of time, effort, cost, and more, and ensures they implement the cloud ERP in a timely manner, which allows for more agile business management.

“At its heart, cloud-based ERP simplifies the complex through seamless accessibility, helping businesses run smarter, scale faster, and embrace change with confidence.”

— Rushi Patel, a Team Lead at MindInventory.

Key Features of Cloud-Based ERP

Cloud-based ERP software comes with a variety of features. These include faster deployment, real-time access and data visibility, and seamless integration across business functions. Besides, mobile accessibility, on-demand scalability, and robust security are also integral features of cloud-based ERP.

Here are the key features of a cloud-based enterprise resource planning system you should know: 

1. Faster Deployment 

As they’re market-ready, cloud ERP systems feature faster deployment. These systems are more likely to be implemented more quickly than traditional on-premise systems. These systems help businesses gain quick access to faster and more agile business management. 

2. Real-Time Access And Data Visibility

Cloud-based ERP provides access to real-time data across departments. It enables you to gain real-time insights, spot trends, and make decisions accordingly. That level of improved visibility to data helps teams make faster, more informed decisions. 

3. Integration Across Business Functions 

One of the excellent features of a cloud ERP system is its integrated business functionalities. It unifies various business processes into a single system, which includes accounting, finance, inventory management, customer relationship management (CRM), supply chain management, and many more. 

4. On-Demand Scalability 

With cloud-based ERPs, you can easily scale resources up or down based on your needs. You can do so by adding users or modules without major disruptions. It saves you time, effort, and money, nudging your business to grow faster. 

5. Mobile Accessibility

Cloud-based enterprise resource planning software solutions feature mobile accessibility. It allows businesses to manage operations from any device. The very feature supports remote teams using different devices with real-time collaboration.

6. Security And Compliance Features 

One of the crucial features of cloud ERP systems is robust security and compliance. ERP solution providers ensure robust encryption and data privacy. It also complies with standards like GDPR, HIPAA, and SOC 2, ensuring robust security and compliance.

Cloud-Based ERP vs On-Premise ERP: A Quick Comparison

Many aspects differentiate cloud-based ERP from an on-premises one. From deployment, updates, accessibility, and scalability, to cost and time to implementation, cloud and traditional ERPs are different in many aspects. See the complete comparison of cloud-based ERP vs on-premise ERP to get a clear picture of how they’re different: 

It’s also important to understand how cloud ERP compares with SaaS ERP, a model where the software is hosted and delivered over the internet. Examine Cloud vs SaaS for a deeper, clearer understanding. 

Benefits of Cloud-Based ERP Software

There are plenty of benefits of cloud ERP software. These include faster implementation, lower upfront cost, accessibility from anywhere, automated insights, and many more. Here’s all you should know before moving towards implementation: 

1. Fast Implementation

Among many advantages of ERP, the cloud ERP system adds even more, which is quicker deployment than on-premise deployment. That’s because your SaaS provider handles software and hardware installation and deploys dedicated staff with data center management expertise. You can easily configure cloud ERP business applications. 

What’s more, the intuitive user interface makes it easy to learn to use the app. It speeds up time and enables businesses to operate faster to grab opportunities. 

2. Lower Upfront Cost

Cloud ERP systems offer a pay-as-you-go model, so there’s no upfront purchase cost for software and hardware. Since the upgrade and maintenance costs are handled by the cloud provider, ongoing IT and related staff expenses are also lower. So, you can save a significant amount of cost, specifically with public cloud ERP software. 

3. Accessibility, Anytime, Anywhere

Accessibility beyond the boundaries is one of the advantages of cloud ERP systems. Users can access your business data from any location. All you need is a stable internet connection. It fosters remote work and global business operations.

4. Automated Updates

In cloud ERP, everything, including the software updates, security patches, and additional features, is managed by the service provider. It ensures automatically updating the system and keeping it in alignment with the evolving users’ needs. 

5. Real-Time Insights

Modern cloud-based ERP systems unlock big data and enable you to access hidden information in large and complex data sets. However, traditional ERP comes with reporting tools; it lacks support for integration and real-time analytics, which are available through the cloud. It’s essential to informed decision-making.

Through real-time insights, you can see trends, forecast changes, and automate processes to optimize resources and improve customer service. 

6. Flexibility & Scalability

Cloud-based ERP allows you to easily scale your system up or down. You can do it just by adjusting licenses, users, or storage to help you meet scaling business needs. The cloud service providers let you minimize and maximize technological infrastructure as needed. It aims to help your business grow and evolve quickly.

7. Strong Security 

Robust security is one of the benefits of cloud ERP systems. The cloud service providers offer a professional, hardened environment and excellent infrastructure. These result in strengthened security and limited risk of data breaches compared to traditional systems.

Challenges of Cloud ERP Implementation

Cloud-based ERP brings along plenty of benefits; however, it isn’t entirely free of challenges. Difficulties with migrating data, user adoption, change management, and internet dependency are a few of the challenges of cloud implementation. Here’s how!

• Data Migration Difficulties: Transferring data from legacy systems to a new cloud ERP can be complex and time-consuming. 
• User Adoption & Change Management: Employees may resist shifting to new processes. Appropriate training is needed for smooth adoption.
• Integration with Legacy Systems: Your old systems may not connect easily with cloud ERP. To fix it, you may need extra tools or customization.
• Internet Dependency: Cloud-based ERP software relies heavily on internet connectivity. In case you’ve poor connections, they can slow access or updates.

However, these are challenges; you can leverage cloud engineering services & solutions from the right partner to eliminate the chances of these problems taking place. 

Industries Benefiting from Cloud-Based ERP Systems

Cloud-based ERP systems are getting implemented across the industry. These might involve manufacturing, retail, e-commerce, healthcare, education, and construction. Here’s all about industries using cloud-ERP software solutions:  

1. Manufacturing

Manufacturers use ERP tools to augment control of production, inventory, and supply chains. Real-time visibility of operations, lower downtimes, and improved forecasts resulted from Cloud ERP systems. This assists manufacturers in quickly adjusting to demand shifts and lower market costs.

2. Retail and eCommerce

For retailers and e-commerce businesses, ERP integration helps track sales, inventory, and customer behavior in real time. Cloud ERP offers systems and eCommerce integrations with POS to maintain real-time stock, speed up processing, and provide personalized customer experiences.

3. Healthcare

Hospitals and healthcare providers use cloud-based ERP systems to control and consolidate patient records, billing, compliance, and procurement. The system ensures HIPAA-compliant patient data security, along with improving data control, resource allocation, and patient care.

4. Education

Cloud ERP systems allow educational organizations to manage the admission process, finances, personnel, and student data all in one system. With this, reporting becomes easier, interdepartmental collaboration is enhanced, and both faculty and learners gain mobile access to information. All these factors contribute to enhanced agile governance, student involvement, and engagement.

5. Construction

Managing several projects and maintaining control over internal budgets, contracts, and timelines are benefits construction companies gain from ERP systems. It helps constructors with real-time analytics of materials, people, and expenses. The system fosters agile team collaboration, adherence to timelines and budgets, and improved cost control.

How to Choose the Right Cloud-Based ERP for Your Business

Starting from defining your needs to considering budget and ensuring support & training, here’s the 5-step strategy to choose the right cloud-based ERP software for your business. It’ll help you choose the right software, suitable for your business needs.

1. Define Business Needs And Goals

Identify and map business processes to look for areas of improvement. Clearly define objectives with regard to ERP implementation. Is it value add, efficiency improvement, cost reduction, or growth enablement? Goals and objectives of the business should converge to ensure the ERP system is geared to the business strategy.

2. Budget And Pricing Models

Along with the standard subscription, there may be additional costs with cloud ERP for more features and integrations. Budget planning should include both upfront and ongoing costs. Other costs not initially known, such as customization, training, or support, often lead to unpleasant outcomes. Get in touch with a cloud consulting company for proper assistance.

3. Industry-Specific Functionality

Every industry has specific compliance, such as healthcare or retail, with unique inventory issues. ERP functionality should support the sector, along with enhanced features to support specific workflows and compliance.

4. Scalability for Future Growth

The business is likely to grow, and thus the ERP must grow with it. Additional users, modules, or integrations should be readily available. So, ensure the cloud ERP you have offers scalability with maximized ROI. 

5. Support And Training Availability

Although this step works when you’ve selected an ERP system, it’s as essential as all the above. Once you have chosen an ERP software, you should ensure that documentation, onboarding, and ticket-based support are available for a seamless implementation. Training materials and programs lead to system adoption and reduced business change.

Examples of the Best Cloud-Based ERP Software Solutions

Among many, the top examples of cloud-based ERP software solutions are CollabCRM, Oracle NetSuite, and Microsoft Dynamics 365. Each of these ERP software solutions offers distinct advantages for various business sizes and industries. See them in detail to choose the right one: 

1. CollabCRM

CollabCRM is a cloud-based business operating system. Instead of a full ERP suite, CollabCRM focuses more on integrating multiple key business functions for IT companies in a centralized platform. These features are typical of a customer relationship management (CRM) and work management system: 

Key Characteristics: 

• CollabCRM integrates several key business functions for IT companies in a single platform. These features are typical of a customer relationship management (CRM) and work management system: 
• Sales/CRM: It tracks leads, deals, and invoices to better manage the sales pipeline.
• Project Management: Enables teams to plan and track project milestones and tasks.
• Human Resources Management (HRMS): Efficiently handles people management, including recruitment, attendance, and employee data.
• Recruitment Management: Comes embedded with tools for managing the hiring process.
• Analytics and Reporting: CollabCRM offers real-time insights for data-driven decision-making across various departments.

2. Oracle NetSuite

Oracle NetSuite is true cloud-based enterprise resource planning (ERP) software, which offers integrated business management solutions. The very solution aims for easy financials, CRM, e-commerce, supply chain, and more.

Since it’s designed from the ground up for the cloud, Oracle NetSuite offers real-time data access through web browsers, automatic updates, and scalability with no complex processes. 

Key Characteristics: 

• Unlike many cloud-based ERP systems, retrofitted on-premises software, NetSuite was built natively for the cloud. Hence, it delivers better performance, seamless upgrades, and no version lock-in.
• NetSuite provides a unified system for multiple business functions, for example, financial management, customer relationship management, e-commerce, supply chain management, and more. 
• It provides live, role-based dashboards that ensure real-time insights and key performance indicators (KPIs). This way, the ERP allows users to access detailed data from any browser. 

3. Microsoft Dynamics 365

Microsoft Dynamics 365 is a complete suite of cloud-based ERP and CRM business applications. It is designed to integrate and streamline key business processes, including sales, finance, and operations. The system offers modular, customizable solutions, like Business Central for small to midsize businesses and more tailored applications for specific functions. 

Key Characteristics: 

• Microsoft Dynamics 365 combines ERP functions, like managing finances, supply chain, and manufacturing, with CRM functions, such as customer service, sales, and marketing, into a single, unified platform.
• The system incorporates AI-powered tools, for example, Microsoft Copilot, to automate tasks, create real-time reports, and offer intelligent insights for better decision-making. It is an excellent example of how AI in supply chain management works. 
• Microsoft Dynamics 365 is a SaaS solution that is accessed via the internet. It enables easy deployment and mobile access from any device.
• It helps you select and implement only the applications you need, adding more as your business scales, providing flexibility and scalability.

Wrapping Up: Get Your Business Growing with Cloud ERP

Cloud ERP systems ease how businesses operate, and we simplify how they’re developed. We’re a leading software product development company, providing comprehensive ERP development services across industries. Be it healthcare, education, construction, or sports, our solutions extend across industries. 

From consulting to design, development, deployment, and post-development maintenance, we excel at complete ERP software development services. Working for more than 14 years, we’re trusted by 1600+ happy clients worldwide. Renowned brands like Panasonic, Air Asia, KFC, and many others have shown their trust in us to build solutions that simplify their business processes. 

With more than a decade of experience, we’re serving businesses across 40+ countries, and the next one could be yours. Whether it’s building a new ERP system or modernizing an existing one, we’ll help you get there. Here’s how we created a cloud-based investment platform for a fintech company. The client experienced: 

• Handles real-time stock trading efficiently
• High availability (Reduced downtime, even during high traffic)
• Easy to scale up when more users join the platform
• Robust security & fault tolerance

That’s how we excel in cloud development! If you need a solution similar to this, share your project with us! Get in touch for complete ERP software development solutions with precision!

FAQs on Cloud-based ERP