For manufacturers and distributors navigating today’s ERP landscape, understanding what “cloud” truly means is essential. It affects cost, usability, customization, and long-term scalability. Here’s what decision-makers need to know before selecting a cloud based ERP solution.
At its core, cloud computing aims to eliminate the infrastructure burden traditionally carried by companies. Instead of managing in-house servers and applications, businesses can now rent access to computing power, storage, and enterprise software hosted on secure, remote platforms.
This isn’t a brand-new concept. Hosted ERP systems have existed for over a decade. What has changed is the level of sophistication, flexibility, and scale cloud providers now offer—and how that intersects with modern enterprise resource planning software.
Leading providers like Amazon Web Services (AWS), Microsoft Azure, Oracle Cloud, and Salesforce have turned cloud computing into a utility. Businesses can spin up virtual servers on-demand, avoiding upfront hardware costs and ongoing maintenance. Some of these providers offer managed services, while others require businesses or third-party IT partners to manage infrastructure.
At Meaden & Moore, we help clients make informed decisions in this evolving utility-based model—especially as IT infrastructure becomes commoditized and integrated with ERP strategy.
Not all ERP solutions in the cloud are created equal. Understanding the nuances in cloud ERP architecture is critical when selecting a platform. Here are four areas where major differences emerge:
Some ERP software publishers provide an all-in-one solution—hosting their software on proprietary cloud platforms (e.g., Microsoft Dynamics on Azure). Others rely on third-party infrastructure, such as Sage ERP on AWS or IQMS on Oracle Cloud.
This matters. The number of vendors involved can impact pricing, technical support, compliance, and system uptime. It’s critical to assess the full delivery chain before committing to a cloud based ERP system.
Traditional ERP models involve buying perpetual licenses on a per-user basis. Cloud ERP platforms, however, are increasingly sold via subscription—a Software-as-a-Service (SaaS) model.
While subscriptions lower upfront costs, long-term expenses can exceed traditional ownership models. Decision-makers should evaluate total cost of ownership (TCO) over a multi-year horizon, balancing short-term budget flexibility with long-term financial strategy.
Legacy ERP systems were built for Windows client-server environments. These platforms typically require middleware (e.g., Citrix or Remote Desktop) for remote or mobile access.
In contrast, modern cloud based ERP systems—like Acumatica or NetSuite—are designed to run natively in a browser. This enables seamless access from any device, enhances collaboration, and reduces IT complexity. For distributed or mobile workforces, browser-native ERP systems offer a clear strategic advantage.
Even small manufacturers are seeing the value. One of Meaden & Moore’s recent clients, a $5M job shop, chose a browser-based ERP platform to improve mobility without adding infrastructure or middleware.
Client-server ERP systems offer extensive customization—often powered by frameworks like Microsoft .NET. Browser-based cloud ERP platforms, while more user-friendly, can be less flexible when it comes to deep, system-wide customizations.
Businesses with complex or highly specific workflows may find current cloud systems limiting. If your company culture demands custom processes, a hybrid or hosted model using traditional ERP software may be the better fit—especially with middleware for mobile access.
On the other hand, if your team can adapt to best practices built into the software, a cloud-native ERP platform offers greater simplicity and faster implementation.
While ERP software is now standard for manufacturers and distributors, the decision between hosted, hybrid, or cloud based ERP depends on many factors—including licensing preferences, customization needs, IT infrastructure, and remote work strategy.
At Meaden & Moore, we help clients cut through the marketing noise to find the right ERP solution for their business—whether that’s a fully cloud-native system or a hybrid model built for flexibility and control.
The shift to cloud based ERP can reduce costs, improve agility, and future-proof operations—if you choose the right approach. Contact Meaden & Moore to discuss your ERP roadmap and get expert guidance through every phase of your enterprise resource planning journey.