It’s a fact: manufacturing companies are slower than companies in other industries in adopting cloud-based enterprise resource planning (ERP) software. Here at Technology Evaluation Centers (TEC), we’ve learned this first hand, as practically all the manufacturing ERP software vendors and manufacturing companies that TEC interacts with report this pattern of behavior. What is the rationale for manufacturing companies’ slower adoption of cloud based ERP software?

Although the cloud deployment model makes sense strategically for all enterprise applications, including ERP, there are always exceptions, and some businesses simply won’t be able to adopt cloud ERP because of a variety of restrictions. Here we look at some of the main reasons manufacturers are slow to move to the cloud, what ERP users are saying about the concerns and potential benefits of cloud ERP, and some manufacturing scenarios in which cloud ERP may be an appropriate alternative to on-premises solutions.

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