Cloud-Based ERP System: Benefits and Security Issues

Enterprise Resource Planning or ERP is a set of activities that are used by the companies in order to manage their business easily and efficiently. Cloud-based computing or Software as a Service (SaaS) is a program that allows users to access those software applications that are running on a shared computing resource like a disk or memory via the internet. Cloud ERP refers to an approach that makes the use of cloud computing platforms and services for an easy business process transformation.

However, the biggest skepticism about an ERP system is about its security aspects. But it has got ton of benefits which none other can offer. Can benefits out value data security?

Benefits of Cloud Computing ERP

Using a Cloud Computing ERP is beneficial in a number of ways for a business. While the most relevant one being the reduced cost, there are a number of other ways in which this system proves beneficial to the companies. Some of these are as mentioned below:

• Requires lesser IT support as the same is provided by the data center.

• No need to pay monthly fees to upgrade the licenses of application software.

• Reduced cost of maintaining and supporting the applications as the same is managed by the cloud vendor.

• Payment to be made only for the required computing resources.

• No change in the monthly rate to be paid by the companies so as to avail the services.

• Takes lesser time as no need to install any hardware or software in the user’s devices.

• No need to alter the cloud’s storage due to any changes in the company’s storage needs.

• Instills confidence in the user by making a disaster recovery plan available.

• No risk of data loss.

Flaws in data security using cloud ERP

Cloud ERP offers a number of cost-saving benefits to its users such as pay as you go, easy access to powerful hardware and software, to name a few. But cloud ERP is not just about these benefits as using it may cost heavily to the companies in a number of other ways. Some of the common security concerns when using cloud ERP are as mentioned below:

1. Risk of data loss

Data loss occurs when a disk drive expires or stops functioning without the owner creating a backup of the files.This issue generally occurs when the person who owns the encrypted data loses the key to unlock it.An easy availability of the cloud services over the cloud increases the risk the security risks for the data.

2. Performance risk

When using a cloud ERP, the clients and communication service providers (CSPs) are completely separated and located in different geographical locations. They are instead connected to each other via a powerful internet connection. But there is always a risk of network failure and connection problems that may directly affect the performance of the cloud ERP.

3. Compliance issues

Sometimes, it gets really difficult for the cloud ERP users to comply with the data, energy and environmental standards. There is also a lack in the availability of enough regulations that may allow them to handle any such difficulty that occurs due to such compliances. All such troubles may, in turn, put the data available on cloud at risk of a security breach.

4. Limited functionality

The traditional cloud ERP systems require time to develop into a more stable and reliable ERP. Moreover, it is not always easy to incorporate latest developments and advancements into the system. This, in turn, increases the security threat of the data as it is at an increased risk of breach and loss with outdated security measures.

5. Data sensitivity

Since there are many organizations that consider its data to be private, they generally don’t prefer to store it outside their premises. The lack of reliability on data security at a server located outside is another risk factor for cloud ERP.

Conclusion

While it may seem too many that the data stored on cloud ERP is always at a risk of loss, it is not always true. The ERP system on cloud has a number of positive aspects as well such as rapid implementation, scalability, improved mobility and various others.

It is important to ensure that one should not make a choice of the ERP system based on the details shared by the company. One must opt to take a step forward and research completely about the product so that there is no threat or risk to the data security and safety stored on any cloud ERP. For further queries Probytes, the Odoo ERP Web Development Company Can offer better insight regarding the issue.