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  • Writer's pictureTarana Rana

How to Decide When to Move to The Cloud

If you're considering a migration from your on-premises solution to the cloud and aren't sure about the best time to make a move, read this first.

A cloud shape made out of pins and white thread

Your organization may have been considering a migration to the cloud for a while now. You're aware of all the benefits of cloud ERP, and you acknowledge it's time to move off your on-premises or legacy system. But you're not sure about when the best time to do it would be.

After all, implementing cloud ERP is a project that requires dedicated time and resources and can be daunting, especially if you are a small or mid-sized business.

Here are some common situations you may encounter that signal that it's time to make that move to the cloud.

When should you move to the cloud? 6 situations that signal it is time.

1. Your company is growing rapidly

If your company is expanding or growing rapidly, it might be time to invest in cloud ERP. Unlike their on-premises counterparts, cloud ERP allows you to scale and future-proof your business quickly. With on-premises solutions, you have to purchase and upgrade your infrastructure to scale, which is always extremely expensive. Scaling with a cloud ERP solution is as simple as updating your plan and purchasing new user licenses.

2. You are due for a software or hardware upgrade

If your on-premises solution requires a major update, it may be the right time to make a move to the cloud. Whether it's your software that needs to be updated to the newest version or your hardware that needs an overhaul, both are a time-consuming and costly process. When you switch to cloud ERP, painless upgrades will become a thing of the past. Why? Because your software is updated automatically by your vendor, and the cost is typically already covered in your subscription. As for hardware, cloud ERP doesn't require in-house infrastructure, as the software provider hosts your software on their servers. All you need is an internet connection to access your solution through your desktop, tablet, or mobile.

3. Your company is merging or in the process of being acquired

Technology integration is an important factor in mergers and acquisitions and a critical component for a successful merger or acquisition. If your company has a modern cloud ERP system in place, IT integration becomes much easier when you go through a merger or acquisition. In fact, companies with flexible, streamlined solutions can even add value in an acquisition, and acquirers might even be able to bid higher.

4. You are pivoting to a hybrid or remote work model

After a year of remote working, the vast majority of employees reported an increase in productivity. Many workplaces where employees are able to work remotely are likely to continue the practice or embrace a hybrid workplace model. If your business is one of them, adopting the cloud should be your first move. Cloud ERP offers more mobility, accessibility, and collaboration compared to on-premises solutions. Your employees can access business data and the tools they need from anywhere, on any device. Using the cloud also means your data is accessible in real-time, making it easier to share and integrate information across departments.

5. You need to cut costs and simplify IT management

Cloud ERP helps you reduce costs and lowers the total cost of ownership. In the long run, you are looking at a cost-effective solution that has a greater capability of streamlining and optimizing your operations and business processes. Your costs are reduced because cloud ERP eliminates the need for expensive hardware and servers, reduces admin costs, and helps eliminate third-party products and disparate one-off solutions. It also enables you to free up your internal IT team, as they won't need to maintain hardware or manage software version upgrade efforts.

6. Your ERP software has reached end-of-life

If your current ERP software is about to reach end-of-life or has already hit that mark, it's time to migrate to the cloud. End-of-life typically means that the vendor no longer supports a solution. This means you'll no longer receive software updates with new features, bug fixes, or any security updates, posing several risks for your company. You're more vulnerable to security breaches and cyberattacks and makes it more costly to fix any issues that may arise in your system down the line.

Moving to Cloud ERP: What's Next?

The cloud shift is here. Wait too long, and you risk losing market share if most of your competitors already use cloud ERP and leverage its benefits to their advantage. If any of these situations apply to your organization, you should strongly consider moving to the cloud.

The first step in the process is learning more about cloud ERP. We've rounded up some of our previous blog posts around the subject to get you started.

💻 What is SaaS ERP?

🔎 Weighing the Pros & Cons of Cloud ERP

Migrating from On-Premises to Cloud ERP: 5 Key Considerations

💵 How Cloud ERP Can Improve Your Company's Cashflow

🚛 How Cloud ERP Benefits Your Distribution Business

7 Business Problems You Can Solve by Moving to the Cloud

If you have any questions or would like to learn about Microsoft's leading mid-market cloud ERP solution, Dynamics 365 Business Central, get in touch with the team at Kwixand Solutions. As Dynamics 365 Business Central partners based in Vancouver, Canada, we help small and mid-sized companies through all stages of their cloud transformation.

Click to learn more about how easy it is to move to the Cloud

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