The enterprise resource planning (ERP) needs of the public sector enterprises are changing dramatically. Governments are moving away from customized, on-premises solutions to cloud-enabled platforms to focus more on efficiently providing public services and spend less time managing technology.
The COVID-19 global pandemic has made a deep impact on the entire world, including individuals, private organizations and government entities. But it has tested the public sector like no other. Government organizations not only had to spend a lot on healthcare, but lockdowns and lesser economic activities also mean a drop in revenue to the exchequer.
Public sector organizations, across the globe needed to adopt new technologies in their operations to continue providing services in during pandemic. Many governments and public sector institutions realized during the crisis that on-premise systems are the biggest obstacle to efficiency and agility.
The Enterprise Resource Planning (ERP) systems have become the key to organizations of all types, whether private or public. While ERP systems are needed by organizations in the public sector to serve the public, many traditional ERP systems today do not have the capability to deliver adequate functionality and scalability in times of need. Also, the on-premise ERP systems have been consuming a lot of resources which is making many governments consider shifting from on-premise to cloud ERP.
Cloud ERP vs On-Premise ERP
The basic difference between cloud and an on-premises ERP is that on-premise system is installed physically in your company’s servers whereas cloud ERP is provided as a service and can be accessed through the Internet. You would need to invest a lot in your IT resources to manage the on-premises ERP whereas the cloud ERP is managed by the vendor.
| Specifications | Cloud ERP | On-Premise ERP |
| Total Cost of Ownership (TCO) | Subscription Fee, No Maintenance Costs | License Costs, Sever & Hardware Costs, Annual Maintenance Costs |
| Deployment Time | Days | Months |
| System Upgrades and Enhancements | Easy, managed by the vendor | Not easy |
| Scalability and Integration | Easy to scale | Involves additional hardware costs |
| Mobility | Can be accessed from anywhere | Requires special packages to access from anywhere |
Cloud ERP scores over on-premises ERP in various ways including lesser costs, quick deployment, easy upgrading, easy scalability and accessibility from anywhere. This will help public sector organizations to cut costs of ownership and maintenance while still enjoying full-scale ERP functionalities. Also, as government institutions digitalize their operations, they would need ERPs that can be quick to deploy, scale as per the demand and are easy to integrate with other platforms and apps. Cloud ERP provides all these benefits to the public sector.
Gemini Consulting & Services can help you in migrating to cloud ERP. If you are looking for an experienced technology partner to upgrade your ERP system or move to the cloud, then Gemini is your perfect choice. Our team has extensive experience in working with public sector organizations and built robust expertise to help them manage their operations efficiently and cost-effectively. Click here to know more about our services.
Reasons to Move to Cloud ERP
Public sector organizations must learn from the challenges faced during the Covid-19 crisis and quickly prepare for the future. Here’s how cloud ERPs will help them-
- Remote Working: Public sector needs to build capabilities to facilitate its employees to work from anywhere during the crisis. Presently, many organizations are unable to do so because of the incapability in their systems for mobile and secured access. Cloud ERP provides access from anywhere and this can help public sector employees securely work from anywhere.
- Flexibility and Scalability: Governments across the globe must build systems and capabilities that are not only flexible but can also be quickly scaled when needed. Cloud ERPs are perfect to handle flexible models and high scalability. These are also easy to upgrade and enhanced with new capabilities. As organizations implement new technologies, a cloud ERP at the core would facilitate rapid adoption and deployment.
- Leveraging Data: On-premises ERP can be challenging for public sector organizations looking to build advanced data capabilities. The traditional ERPs are not designed for automated data sharing, a prime requirement for leveraging data. Cloud ERPs support data sharing as well as integration with other systems to facilitate smooth movement of data across the organization.
- Agility: To respond to crises like Covid-19 in the future, governments must be able to rapidly adapt to evolving situations. Cloud ERP provides agility to organizations through real-time data sharing, and intelligence. This can help leaders to make informed decisions.
