Cloud ERP market maturity is a big concern for the occupants of the C-suite, who often worry about limited functionality and data breaches.
When it comes to data security, there’s no way to sugar-coat the risk when going down the cloud ERP path. You have to trust a third-party provider with sensitive information like financials and customer information. The risk gets greater if you look at smaller vendors who might not have the resources to invest in modern security infrastructure.
Compared to traditional on-premise systems, cloud-based ERP solutions will likely have fewer configuration options. Usually, the cloud option is best suited for companies that use more standardized business processes in areas like finance, purchasing and sales. Cloud ERP might not be able to handle the needs of companies that have very customized business processes or a lot of integration points with back-end systems.