Cloud ERP providers often use the cloud label on software that has few of the positive qualities of the cloud, especially economies of scale for multiple tenants, frequent and fast updates through the latest technology and web-based user interface, providing ease of use and access to mobile devices. Some deployment models simply relocate the underlying IT infrastructure without changing the local ERP software code.
Calling a hosted ERP "cloud" as such can sometimes be misleading, but vendors are increasingly offering the service to customers who are suspicious of new SaaS ERP products but want some of the benefits of cloud infrastructure. However, cloud ERP software has entered a new era of profitable purchasing across multiple channels into one platform.
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Therefore, buyers should check with their cloud ERP provider for details about the cloud platform. Multi-tenant SaaS is the purest form of cloud, followed by single-tenant SaaS, where each customer receives their share of the ERP software running on the provider's platform.
Both types of SaaS ERP are usually hosted on the public cloud:
Cloud computing infrastructure and services from providers other than the ERP provider itself. Most cloud ERP providers have put their responsibilities on the Cloud platform outsourced to public cloud providers such as Amazon Web Services, Google Cloud, and Microsoft Azure.
The third important type of cloud platform for ERP is the private cloud.
Single-tenant SaaS is one type, but another type of private ERP cloud hosted on a platform that only deserves a cloud alias because it is accessed through data center hardware and software dedicated to each ERP customer. Private ERP clouds can even work entirely locally in companies that are building their own cloud infrastructure.