It goes without saying that technology has evolved a lot in recent years. While consumers have kept up on all the changes, many companies are still falling behind when it comes to software upgrades and updates. In fact, a lot of companies are still using legacy ERP solutions because they prefer to just stick with the old way of doing things, but that’s not an ideal situation. In fact, a lot of companies don’t even realize what a problem this is, but in the long run, legacy systems can actually cost a lot of money (as well as time and energy).

There are a lot of reasons firms continue to use legacy ERP systems. Sometimes, they do so out of habit; other times, they might be afraid of what a newer system upgrade could cost them in terms of money and employee resources. Additionally, many companies simply aren’t aware of the benefits that modern, cloud-based ERP systems provide.

With all this said, let’s dive into some reasons your legacy ERP system may be costing you money and frustration.

1. Ongoing Monitoring and Maintenance

If your legacy ERP system requires on-site hardware and software maintenance, you’re spending time and money on IT specialists who are required to come to your company to maintain the functionality of your servers and assist with system failures and software upgrades.

When problems arise that can’t be solved by your in-house team, you’re likely paying high costs for a consultant to deal with the upgrades and system patches.

Cloud-based ERP systems, on the other hand, are maintained offsite. This allows your employees to be freed up so they can spend their time on more meaningful, strategic projects. You need to weight the costs associated with the personnel needed to keep your legacy ERP system well-maintained to get the full picture of the costs of your current product.

2. Challenges with Remote Access

Today’s workers need access to their systems outside of the office. If your legacy ERP system isn’t providing employees with the ability to work consistently from wherever they are, you’re running the risk of duplicating the same siloed workflows that may have existed before you even implemented an ERP system in the first place.

Legacy software simply can’t handle smartphones and remote-working trends as they’ve evolved in recent years. Often, employees don’t have full access to the information they need from any location or device. However, a centralized, cloud-based ERP platform can avoid this vulnerability and enhance efficiency.

3. Cost of Building and Maintaining Custom Code

Whether your company offers B2C or B2B products and services, we’re seeing a shift towards personalized communication and targeted outreach. Legacy ERP systems are often built with traditional B2B models in mind, meaning there are often significant investments in custom coding needed for any changes that might happen to your business model.

Cloud-based ERP systems, however, are more natively built for today’s companies’ needs, minimizing the need for so much custom coding. They’re built with flexibility in mind, so they easily adapt to what your organization needs without special modifications.

4. Outdated Cybersecurity

The cybersecurity threat landscape is ever-changing, and cyber criminals tend to be on the up-and-up in terms of what software developers know. Legacy ERP systems simply don’t stand much of a chance in this type of environment because they have to be updated by your internal team, and the patches and upgrades can be quite tricky.

On the other hand, today’s cloud-based ERP systems are maintained on an ongoing basis by developers. This means new vulnerabilities can be caught and patched more quickly, and core software adjustments can be more easily integrated into the software landscape.

If you’re exposed to cybersecurity breaches, you could easily wind up losing data, and the costs associated with such an event could add up quickly. Sure, you could save in short-term costs by not upgrading your legacy ERP system, but the long-term risks are quite considerable.

Learn more in Three Reasons Cloud ERP Delivers Security for Your Remote Teams.

5. Lack of Real-Time Reporting

Outdate systems usually can’t give you the type of real-time reporting you need to make informed business decisions. There’s a lack of automation and accessibility on production, POS data, inventory, and work hours that could negatively affect your company’s productivity and hurt future opportunities for growth. While legacy systems do usually hold this data, they don’t often offer the visibility to see real-time updates. From an operations standpoint, this can be a huge differential when you’re making company decisions.

If you’re insistent on using a legacy ERP system, you’re probably hurting your ability to collect and analyze data. Cloud-based solutions, on the other hand, offer you flexibility and give you the information you need to pivot if things change—as they often do.

Get to the Cloud: Modern ERP Costs Less

Stop making excuses—it’s time to join the scores of companies who have put their business in the cloud and never looked back. If you’re looking to learn more about why an upgrade from legacy to the cloud is less of a hassle than updating your current product, we recently released a whitepaper explaining just how easy it is to make the move.

In our whitepaper, titled Why Replacing Legacy Systems with a Cloud Solution is Now Mission Critical, you’ll learn about:

  • How the business landscape has changed, requiring a new approach to running an organization.
  • Six areas where modern cloud solutions deliver (that legacy products can’t).
  • A special offer from MIBAR designed to help you make a switch during the COVID-19 pandemic

Click here to learn more.