How is Cloud-based ERP different than Legacy Software?
ERP systems are a great resort to the traditional methods of manual resource planning and management. They substantially transform the work structure of an enterprise and instill a more standard and accurate management system.
Legacy and Cloud-based ERP are two variations of ERP that are often compared with each other. While Legacy ERP came first in the picture, Cloud-based ERP can be viewed as a technological upgrade to the same. However, each of them has its own distinct features.
In this article, we will discuss how is cloud-based ERP better than legacy software?
The article will also walk you through the definitions of Legacy ERP, Cloud-based ERP and the differences between them.
What is Legacy ERP?
Legacy ERP or Legacy Enterprise Resource Planning System consists of robust specifications for business management. However, it needed constant upgrades to meet the evolving industry standards. As a result, the creators of the product needed to continually come up with codes to meet the requirements of their existing customers. This process became tedious for both the creators and the consumers, and Legacy ERP was eventually declared to be outdated.
You may also like to read : What is ERP and Why is it Used in a Company?
What is Cloud-based ERP?
Cloud ERP is an upgrade to the traditional Legacy ERP system. Unlike an on-premise system, it is not limited to a network or location. It is linked to a cloud platform that allows the user to access the portal in a remote and flexible manner.
A cloud-based ERP system automates different office processes and integrates them into a common platform. This inculcates convenience and efficiency in the workspace.
Legacy Versus Cloud ERP
The major differences between Legacy ERP and Cloud-based ERP are highlighted through the methods of installing and assessing the software. Cloud ERP presents a more convenient interface in terms of access and flexibility as compared to Legacy ERP.
Legacy ERP works with network servers and system restrictions. These are the fundamental distinctions between the two kinds.
Let’s have a look at some more differences stated below-
Cost, Time & Effort
Cloud ERP are available as SaaS i.e. Software as a service. They allow the user to enjoy an integrated work platform by paying a subscription fee. The user gets access to the software portals, its tools, and the freedom to use the application on any hardware device or network server. It also gives the user the liberty to select from different plans and purchase the package that suits the requirements and budget of the buyer.
Software like Juntrax is a prime example of comprehensive and user-friendly software that does not require any expertise and can easily be operated by anyone having a basic understanding of IT and technology.
You may also like to read : Affordable and Complete ERP Solution for SMEs
In contrast to cloud-based ERP systems, Legacy ERP requires the user to purchase the software along with the hardware. In case if the office does not have a well-maintained hardware system, they will have to invest in building one, if they wish to install the software. They can not be operated with basic knowledge and therefore require a dedicated team of professionals.
Upgrades and Customizations
Most of the companies offering legacy and cloud ERP systems, provide an option to upgrade and customize the software as per the requirements of the company.
In the case of a cloud-based ERP system, updates can be handled easily as the process is automated and directly handled by the vendor via the cloud.
However, in the case of Legacy ERP, the user or the manager is required to look after the updates and manage them. The updates need a well-versed IT team in order to get installed and implemented. Therefore, it becomes complicated to get a Legacy ERP updated in comparison to a cloud-based ERP.
Mobile Access
Cloud-based ERPs can be accessed through Internet browsers and are therefore advantageous in terms of remote access. They are not restricted to a server and can be used anywhere at any time. They are also flexible and can be used on interfaces like Windows, Android, iOs, and Apple. Many Cloud-based ERPs come with mobile applications to further simplify the user experience.
You may also like to read : Reasons why your organization must have a Mobile ERP
In the case of a Legacy ERP also known as On-premise ERP, the user can only access it on the device on which it has been installed. It also has network restrictions and only functions on authorized servers.
How is Cloud-based ERP better than legacy software? – Difference
|
Legacy ERP |
Cloud-based ERP |
|
| 1 | They function on hardware infrastructure and require system installations. | They do not need on-premise installation and function on a cloud interface on any Internet server |
| 2 | They are created with the help of a proprietary or legacy programming language. These languages tend to get outdated and discontinued in the future. | They are developed using prominent web-based tools like java and HTML. These languages will never get outdated and therefore present a long-term advantage. |
| 3 | Legacy ERP software can only be installed manually with the help of CDs. | Most of the cloud-based ERP software are installed with the help of a cloud without any manual struggle. |
| 4 | Implementing a Legacy ERP requires a considerable amount of time as every process is performed and managed manually. | Cloud-based ERP software have a pre-built design and perform in an automated manner. They also offer an integrated interface and therefore save a considerable amount of time and effort. |
| 5 | Applications of a Legacy ERP require periodic updates and therefore incur extra cost, time, and effort. | Applications of a cloud-based ERP get updated, administered, and maintained in an automated discourse on a periodic basis. |
| 6 | It is not very cost-effective | It is very Cost-Effective |
Conclusion
The market is filled with rigorous competition and to stay ahead of all your competitors it is important to know your needs, enhance your workspace and adopt technology that will boost the potential of your enterprise.
An ERP system fulfills those requirements. The decision to select between a cloud-based ERP and a Legacy ERP must be made after carefully assessing your needs, your budget, the workspace, and the future prospects of your enterprise. A Cloud-based ERP can be your shield on the battlefield while a Legacy ERP might slow down your pace.
