One of the biggest reasons companies are behind on their ERP systems is the fact that the update process can be costly, challenging, or time consuming. What if we told you that you never have to deal with going through the upgrade process again if you just take one more step with your ERP system? It’s honestly not too good to be true! Today, we’ll compare the process of upgrading to a cloud ERP solution or updating an existing one from a legacy product.
Why Replacing Legacy ERP Systems with Cloud Solutions is Mission Critical
Wouldn’t it be nice if you no longer had to waste time and money using an outdated version of your ERP that is not only sustainable, but hasn’t truly delivered its promises for a long time? Are you prepared for an inventory shortage, increased manufacturing prices, or any other unexpected situation that could arise and cause your business to have difficulty meeting consumers’ needs? If not, your ERP system might be out of date and ready for an overhaul.
If your company’s using legacy software, you’re probably not even caught up on updates, let alone upgrades. However, that’s not a reason to shirk your responsibilities as someone who wants to do the very best for your company that you can do. You might be scared about putting in months of planning for a system you don’t know anything about when your current legacy system is working just fine. But, is it really working just fine? More than likely, no. Outdated systems leave a lot to be desired in today’s world and can ultimately impact the efficiency and effectiveness of your business practices.
It’s no secret that many companies don’t upgrade legacy products because of cost. In truth, the process of upgrading legacy business management software can be quite costly. That’s because:
- Licenses are known to be costly
- Infrastructure adds up quickly when you need desktops, software re-installations, and the manpower to troubleshoot anything that goes wrong
Upgrading Your Legacy ERP System: Benefits or Risks?
If you’re a few versions behind on your current legacy software upgrade, you might be in for a surprise. A lot has changed in recent years, and depending on the age of your software, your upgrade might actually more closely resemble the implementation of a new product.
In order to get the marginal improvement from a legacy upgrade, you’ll need to endure multiple steps to accomplish the task. This often means you’ll have to re-create important customizations that will likely be lost during the upgrade process. In other words, you’ll be dealing with the annoyances that come with an implementation of a new system, but you won’t be gaining nearly the same rewards and benefits. The only thing you’re likely to enjoy is a familiar (yet clunky and still pretty outdated) piece of software.
If you’re going to go through all the trouble of a pseudo-implementation, doesn’t it make sense to do it right and go for a real ERP implementation that will deliver the tools and products you need? Bear in mind that if you continue to use your legacy system, you’ll keep paying 20% or 30% of your license each year for the updates you’re likely to fall behind on. Additionally, the average life of a server is only three to five years, so you might as well go ahead and plan on purchasing a new server, too. If you convert to a cloud-based system, many of these headaches will disappear, well, into the clouds.
Upgrading Your Legacy ERP System to the Cloud: Six Reasons You’ll Never Need to Upgrade Again
Now that you’ve thought about it, maybe the prospect of upgrading your legacy ERP system doesn’t sound so great after all. What if we told you that you could make just one more upgrade and be done with these hassles forever?
Rather than getting a slightly improved edition from your previous setup, you can convert your data into the cloud with a one-time upgrade to a solution such as Acumatica or NetSuite, and you’ll never have to worry about upgrades again. Cloud-based ERP platforms allow you to eliminate licensing costs and replace your current product with a simple, straightforward, and predictable subscription fee.
Here are a few benefits you’ll gain by upgrading to the cloud:
1. Quick Implementation
Cloud-based implementations are flexibility and can be up and running in a matter of weeks (as opposed to quarters or years, which is how many legacy upgrades are measured). Quicker implementations means less money spent and fewer frustrations by your team members.
2. Easy Integration
It’s tough to build and maintain integration. However, when you work with a cloud-based vendor, you have access to readily available application programming interfaces (APIs) so you can easily connect your various systems to your new ERP platform. By nature, cloud-based software is designed to connect with other cloud-based apps in ways legacy systems will never be able to.
3. Economies of Scale
With cloud software, economies of scale are built for you. You no longer have to house a large server room or pay ridiculous amounts of money for processing power because cloud-based fees are a lot cheaper and well-partitioned since you’re one of many organizations using it.
4. Regular Updates
Updates can be just as frustrating as upgrades when you have a legacy system. However, in the cloud, you get regular updates that are released by the provider, so you don’t have to worry about breaking anything.
5. Safety from Cyber Threats
Cloud companies are made or broken based on their ability to keep data secure, so they take incredible measures to ensure security, redundancy, and consistent monitoring. With that said, your data is safe in the cloud and is often far safter than if you were to use an on-premises legacy product.
6. Multi-Level Step Processes
Cloud vendors promise security at every level of the process. They employ:
- Intrusion detection systems (IDSs) to detect any attempt to compromise the integrity of your security controls;
- IP login restrictions ensuring only those who are supposed to access your data are able to do so;
- Enterprise-class anti-virus software that keeps your information continuously protected.
Learn More from MIBAR
If you’re interested in learning more about how MIBAR can help you upgrade your existing ERP system to a cloud-based platform, we invite you to download our whitepaper. If you have questions, please don’t hesitate to reach out to us!
Additional ERP Resources