Cloud ERP Solutions are Secure or Not? | TranZact

Jun 29, 2021 in ERP for SME Manufacturers



In this modernization era, all organizations are taking technological advancements very seriously. And therefore are continuously working to adapt to these latest changes to succeed in their respective industry. Likewise, all the businesses and big corporations have now taken a great interest in automating their business process with the help of different kinds of software like ERPs and many other solutions. Also, a significant shift in demand is observed in recent years towards Cloud ERP solutions. And with the rise in the need for Cloud ERP solutions, concerns related to Data Security on Cloud are also rising.

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What is a Cloud ERP solution?

The Cloud ERP solution is a web-based software that helps its users to access the ERP (Enterprise Resource Planning) solution from any device (Mobile, Desktop, Laptop, etc.) at any location through the user password-authentication process. It serves as a Software as a Service (SaaS) platform. Similar to ERP software, Cloud ERPs also integrates and automates the entire business processes like accounting, inventory management, etc., in one complete solution.

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Difference Between On-Premise ERP and Cloud ERP software.

On-Premise ERP software is a software solution principally maintain on an organizations' server or system and used throughout the organization. An On-Premise ERP offers a customizable software solution to its customers. It uses the companies own IT infrastructure system for security and control purposes. Also, it connects with the people and processes within the organization.

  • The cost of maintaining On-Premise ERP software is very high.
  • It helps in securing confidential data of the organization on-site.  
  • The complete control of the entire data remains within the organization.
  • It requires dedicated IT resources on-site to handle server and application maintenance.
Cloud ERP v/s On-Premise ERP

Where As

Cloud ERP software entirely maintains on a Third-Party server over the Internet. And is easily accessible by any person who has the login credentials and rights to use that software.

  • It requires a low upfront cost.
  • It allows businesses to customize applications, reports, and business processes like the On-premise ERPs.
  • Cloud ERPs are easily accessible from anywhere and are very easy to implement as no servers installations are requirable.
  • All the Data are very safe as the attacks on its company's servers are not possible. Also, the Cloud servers platforms are highly secured as there is very minimal possibility of security breaches.
  • Is Cloud ERP software safe and secure?

    The Cloud ERP solution is safe and secure to use as the Cloud Server Providers ensures its security from any data breach attacks through advanced Firewall protections, Multi-level Encryption, and various other methods.

    In this type of ERP solution, all the information gets stored on an encrypted server network. Also, the servers get placed in secure facilities which get hosted by server providers. Further, they take all the effort in providing infrastructure and in securing the networks.

    The Cloud-based servers get constantly updated by the service providers, which minimalizes the chances of any breaches. Also, a multi-factor authentication system verifies a user's identity based on multiple determinants, including bio-metrics, location, and digital footprints. Doing so means that passwords are useless in the hands of a hacker, and the software is fully secure.

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    Benefits of Cloud-based ERP software

    1. It provides low upfront costs and is easy to implement in the organization.
    2. It lowers down the management costs. Because the cloud service providers handle security responsibilities. So, no extra IT staff is necessary for managing data security.
    3. No extra effort for Updating the software is required as it gets automatically updated on the cloud.
    4. It offers encryption services for the data, which makes the system more secure. 
    5. Also, the Storage needs of the organization get resolve. As at a low rent, the data will easily get stored on the cloud.
    6. The software is easily accessible from any location with the help of the Internet.


    Cloud ERP solutions allow businesses to customize applications, reports, and business processes and are easily accessible from any geographical location via the Internet.

    The data security and privacy issues are generally not present in the software as the Cloud-based Server Provides implements the best technologies to avoid this type of situation. But the exceptions to these types of threats are always present.

    So it is always advisable for both SMEs and Big Corporations should choose the best Cloud Providers for safety against any data breach attacks. TranZact is one such suitable option. It is a digital transformation tool that offers SMEs and businesses solutions that digitize their entire business processes. It works on the AWS cloud platform, which ensures the data security of its users by implementing the best practices available in the industry.


    TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.