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Strenghts and Weakness of Cloud Computing

The document discusses the strengths and weaknesses of cloud computing for Enterprise Resource Planning (ERP), highlighting advantages such as cost-effectiveness, accessibility, and enhanced security. However, it also addresses risks including data security concerns, internet dependency, and limited customization options. Ultimately, the choice between on-premises and cloud ERP should be based on an organization's specific needs and challenges.

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8 views2 pages

Strenghts and Weakness of Cloud Computing

The document discusses the strengths and weaknesses of cloud computing for Enterprise Resource Planning (ERP), highlighting advantages such as cost-effectiveness, accessibility, and enhanced security. However, it also addresses risks including data security concerns, internet dependency, and limited customization options. Ultimately, the choice between on-premises and cloud ERP should be based on an organization's specific needs and challenges.

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cssjourney2028
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© © All Rights Reserved
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Sania Danish

Professor's Name
Course Number
Date: 25-03-2025

Strengths and Weaknesses of Cloud Computing for Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP) software enables organizations to perform various activities
like finance, human resource, and supply chain management on a single platform. Previously,
organizations used to install ERP systems on their in-house servers, but with the advancement of
technology, most organizations began using cloud-based ERP solutions. Although cloud
computing has numerous advantages for ERP, it is correct that it also faces some challenges.

One of its main advantages is that it is budget-friendly. Companies do not need to spend money
on heavy machinery or physical servers since the maintenance and upgradation of the servers are
taken care of by the service provider. IT maintenance charges decrease, and companies can grow
in size as and when they want (Smith 45). Access is the second key benefit. Although cloud ERP
operates over the internet, people can do work from home, and it is more suited for global
companies and telecommuters.

In addition, patches and updates by self-security ensure that companies use the software on the
latest version and patches of security. Cybersecurity is supported by significant investment from
cloud providers, which provides immunity from threats (Johnson n.p.). Additionally,
compatibility with other cloud services provides companies with the ability to automate, which
introduces efficiency as a whole.

However, Cloud ERP is not without risks. Data security and privacy are top priorities. Since
company data is saved on external servers, there is always a risk of data leakage or data abuse
(Davis 23). Organizations dealing with sensitive data should ensure that the cloud provider has
strict security measures.

Another limitation is internet dependency. In contrast to traditional ERP systems running on


internal networks, cloud ERP depends on the internet. Business processes are affected when
operating at slow or interrupted internet speeds. Another factor is that customization may not be
comprehensive for organizations with particular needs. Although cloud ERP packages are
scalable, they fall behind on-premise ERP packages regarding the degree of customization.

In summary, cloud computing has revolutionized ERP systems through cost reduction, enhanced
flexibility, and improved security. Nevertheless, companies should also take into consideration
data confidentiality, the availability of the internet, and low customization before making the
transition. The decision to utilize on-premises ERP or cloud ERP depends on the particular
requirements of an organization, budget, and operational challenges.

Works Cited

Davis, Mark. Cloud Security Challenges in Modern Business. TechPress, 2021.


Johnson, Emily. "How Cloud-Based ERP Systems Evolved." Business Review, 2020.

Smith, Robert. "Cost-Benefit Analysis of Cloud ERP." IT Journal, vol. 12, no. 3, 2019, pp. 40-
50.

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