Construction technology can help take your company to the next level.
However, some vendors have taken to repackaging subpar software offerings in a desperate effort to hold on to market share. When this happens, your company ends up losing out.
During the emergence of the cloud, some ERP software vendors ignored the technology. As a result, they got left behind.
Now, some of them are trying to play catch up by offering outdated versions of software on the cloud. Unfortunately, a fake cloud ERP application can stifle your company’s ability to grow.
To learn how fake cloud applications can hold your construction firm back, keep reading.
Fake Cloud vs. Real Cloud: What’s the Difference?
Virtualization technology allows anyone to provide services on the cloud. However, multiple tenant technology on a single virtual server cannot scale as needed.
These kinds of fake cloud ERP solutions might work in the beginning. However, as companies grow, the flaws of those ERP solutions start to become obvious. A true cloud solution for the construction industry such as Acumatica Construction Edition is scalable, faster, and more cost-effective.
Across all industries, there’s a shift toward cloud computing. Cloud-first applications offer many benefits and new features over standard, hosted software. However, not all SaaS (software as a service) offerings are the same.
Many companies adopt standard programs to work in the cloud. However, they don’t invest in the infrastructure to create true cloud-native applications.
In the end, these fake cloud offerings cost clients dearly. For this reason, it’s important to know how to tell the difference between real and phony cloud applications.
Developers make real cloud ERP software specifically for the cloud. The architecture and microservices for native cloud applications use cutting-edge technology. Both the infrastructure and applications of native cloud technology provide increased flexibility and easier usability among your organization.
What You Get With the Fake Cloud
Many service providers claim to offer cloud-native applications. However, they’re really standard applications on a cloud-hosted server. These offerings claim all the prestige of the cloud without providing any of its benefits.
Originally, engineers designed these kinds of programs for on-site networks. Instead, fake cloud companies deploy the programs on dedicated servers.
A fake ERP is like putting a VW Beetle engine in a Lamborghini. It takes a ton of additional code to make these kinds of applications work over the cloud.
However, try to go 100 mph on the Autobahn and you’ll notice the difference. In other words, your fake ERP will start to bog down as your company grows.
How the Fake Cloud Hurts Your Bottom Line
The point of a cloud ERP system is to increase efficiency with automation. Whenever you have to perform a task, with a fake ERP, you might complete the task with several clicks.
With a cloud-native solution, however, you’ll only need one click to perform the same task. Already, you’ve increased productivity by 100% and minimized the likelihood of human error. A cloud-native ERP enables your team to do twice as much work in the same amount of time.
As an example, with a fake ERP solution, you’ll have to endure longer order to cash cycles. It will take much longer for you to win new business. It will also prove more difficult to retain existing clients.
A fake ERP will also cause you to move much slower than your competitors who use real cloud solutions. Soon enough, your competition will outpace you.
For this reason, it’s important to know the difference between real and fake services when shopping for a construction ERP. In truth, it’s challenging to tell the difference—until it’s too late.
Testing the Integrity of an ERP
However, you can try to figure out if an offering is real by requesting a demo. It’s important to take an ERP for a ride rather than relying on the person trying to sell it to you.
As you demo the program, make a note of its behavior. Think about your legacy apps as you try out the program. Try to assess whether the application looks and feels familiar.
It isn’t easy to assess an ERP in this way. For this reason, it’s a good idea to allow a technical expert to review the program. An IT expert that’s familiar with cloud-native architecture can spot fake ERP flaws.
The Advantages of Real Cloud Construction ERP
A high cost of ownership is another red flag that might indicate a fake ERP. With a fake ERP, the total cost of ownership can be a huge hindrance to your company. There are many more ongoing costs involved in deploying a phony cloud platform.
For example, you’ll find your company investing excessively in hardware, hosting, and support. You’ll also find that fake ERP’s nickel and dime you with seat licenses for managing apps and accessing a hosted solution.
Furthermore, you’ll find that fake ERP applications are difficult to integrate. Fake ERP’s cost more upfront—and down the line. You can save money and time by investing in a cloud-native application that has subscription-based billing.
Engineers designed Acumatica Construction Edition for cloud deployment from day one. It’s a true cloud-native application, meaning that there is no need for extensive plug-ins or widgets.
Acumatica also features phenomenal integrations. Furthermore, there’s no per-seat user licensing fees.
With Acumatica, you can simplify your construction company. Best of all, you’ll sidestep all the problems and costs that come with trying to get on-premises apps to work over the cloud.
Keep Your Data Secure in the Cloud
Cloud-native apps are also safer. Many people mistakenly think that these apps are vulnerable because they reside in the cloud.
However, on-site architecture is enticing for hackers. They know that companies have to work harder to keep their networks safe.
With the cloud, however, you’ll gain immediate access to the most up-to-date cybersecurity protection. Furthermore, you’ll have access to that protection at no additional cost.
Also, cloud architecture saves you from the need to hire full-time IT specialists. These are just a few of the benefits of a truly cloud-native ERP application.
Real Cloud, Real Advantages: Start Today
Now that you know more about fake cloud ERPs and what to look out for, reach out to our experts to see what kind of construction financial management would work best for you.
In short, the disadvantages of fake cloud make it clear that true cloud-native solutions, such as Acumatica, are in the best interest of your construction firm.
Ready for a cloud ERP now?
Check out Acumatica Construction Edition!