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Schedule a consultation with the IT experts from AbsCloud
Please fill out this short form so we can contact you at the earliest opportunity.
As any business grows, the need for more resources arises in order to ensure daily operations, organizational development, and sustainability. The larger a company becomes, the more and more complex processes occur within it. To manage them in real time, most large businesses use ERP systems, which enable efficient real-time resource planning. Here’s what you need to know about them:
Which businesses use ERP systems?
In short, ERP systems allow integrated management of key business processes within organizations, such as finance and accounting, human resources management, production, order processing, customer and partner relationship management, and many more. Nearly all medium and large businesses, government and non-profit organizations, as well as those in the public sector, use management software for their internal processes, which in essence are exactly ERP systems.
The most common problem: Your entire business depends on a single centralized server
If your company has an ERP system, then you already know that your entire activity is directly dependent on the seamless functioning of this software. But where is it actually hosted? If you are still relying on a single server in your central office where your ERP system is located, you are putting your business at enormous risk. Here’s why:
• Your internal IT teams are responsible for server administration
Usually, IT departments in companies are responsible for maintaining various software and hardware devices for employees. If your IT team is also tasked with administering the centralized server, their work will be disrupted every time an issue occurs with it.
• Loss of valuable time for data recovery in case of problems
In rare cases, you may even end up without backup copies of all your data, something that could cost your business dearly and set you back months or even years. Even if you have a data backup, restoring it can take too long—days or even weeks.
• Unjustified dependency
Every server and its components will eventually fail, disconnect, or stop working. Allowing your entire business to depend on the integrity of a single server means you’re taking a huge risk. What’s your plan in case of a problem with the physical server? There could be a malicious attack, viruses, hardware failure, or another issue with the server room. If you haven’t anticipated such circumstances, it’s only a matter of time before your business is affected.
AbsCloud’s Experience: When organizations running on a single centralized server encounter difficulties
We thoroughly understand the limitations of physical servers that businesses keep at their own premises. Our experience shows that it is exactly these companies that most often face:
• Server overloads at certain times – often, at the end of the workday or for a particular reason, a large number of employees perform various operations in the ERP system at the same time. This can lead to server overload and disrupted workflows, which in turn result in numerous negative business consequences—low productivity, higher costs, etc.
• Non-optimized costs – even if you spend a significant amount of money on your own server for your business’s ERP system, know that this is no longer a cost-effective investment. You will need continual maintenance of the equipment, despite the fact that outside of business hours you will only use a minimal part of its resources. Nowadays, technology becomes obsolete much faster, and it is possible that within a year you may need to invest in hardware again. Is it worth it?
• Business paralysis – in the worst case, a server issue can bring the entire business to a halt (e.g., point of sale systems, order processing software, accounting software, etc.). Keep in mind that in many industries, on average, 1 hour of downtime is compensated by 2 hours of overtime for the staff. Other studies indicate that, for a company with around 10 employees, 1 hour of business downtime equates to the cost of 3 average monthly salaries of those employees.
The solution: Optimal cost and maximum security for your business
Many businesses still don’t realize that a solution to all these problems exists—and on much better terms. In Part II of this article, we’ll explain why AbsCloud’s cloud services are an excellent choice for ERP systems, and how our clients are already taking advantage of their benefits for their businesses.
Frequently Asked Questions
